STUDENTS' CORNER - 113

We will spend some more time studying Return Policy since it has been there for long and a performing company is expected to have it.  For various reasons, good or bad, a customer may come back to the company to return the purchased product and the company must be ready generally to accept the returned product and allow the customer to have an alternative article of the same value or it must refund the customer.

The Return Policy of the company must not end up in sales coming down; it must see to it that the sales volume does not suffer because of the Return Policy ; on the other hand, it must see sales going up rather. Let us see in what ways the Return Policy can be so practiced that it brings more ‘Returns’ to the company.

The goal to avoid the adverse consequences of the Return Policy will guide the company to train its marketing personnel so efficiently that there will be scarce returns of the products from the customers.

Of course Return Policy differs company to company. Generally this policy is being negatively viewed; however, strategies can be evolved that will make Return Policy less harmful.  A generous Return Policy invites customers giving them confidence that any purchased product can be returned with no major loss of money for them.  In a way, a generous return policy will help build loyalty in the customers who buy even new products of their choice with confidence that they can return it in case they do not want; but, it may not happen all the time that they buy a new product and return it. This building up of loyalty has another great advantage: by word of mouth, the company can increase its new customers who feel free to buy products from the company.  Return Policy, therefore, can prove beneficial if only strategically used.  Possibly a little loss when a product is return can be more than compensated through acquisition of new customers. In other words, Return Policy helps build relationship with the customers.

There is another advantage of lasting significance of the Return Policy.  A careful study of the purchase behavior and of the return behavior is bound to help the company in understanding the customers better.  With the knowledge gained thus from the study of the Return Policy, the company can hopefully and at the same time cautiously venture into expanding the products offer.  The company finds a viable way of growth.

In short, to the question, Does return policy help business to grow, the simple but definite answer appears to be YES.