For smoke shop retailers, it’s essential to keep up with trends in consumer behavior. One such aspect that cannot be overlooked is return policies. A recent survey by Blue Yonder reveals crucial insights about what customers expect and how they react to various return policies.
Key Findings from the Survey:
Awareness & Perception of Stricter Return Policies: An overwhelming 69% of the respondents are aware of many retailers’ tightening restrictions on returns. Of these, over 60% believe that these stricter policies are either inconvenient or unfair.
Acceptance for Environmental Reasons: An interesting finding was that 9% of the surveyed participants would accept stricter return policies if they contribute to reducing carbon emissions.
Unpopular Return Policies:
More than half (55%) of the respondents dislike restocking fees.
20% aren’t in favor of shortened return windows.
13% don’t like the idea of restricting returns only to physical locations.
10% are against restricting which products can be returned.
Influence on Purchase Decisions: Lenient return policies can boost sales. 71% of respondents mentioned that a lenient return policy influences their purchasing decision, whereas stricter policies deterred 59% of shoppers from making a purchase.
Reasons for Returns:
65% cited defect or damage.
51% received the wrong product.
49% changed their minds.
Shopping Habits and Returns: While only 10% return items monthly or more frequently, 74% admit to making impulse purchases when returning items in-store.
Implications for Smoke Shops:
Smoke shops might differ from traditional retailers, but understanding these broader retail trends can be invaluable.
Strategize Return Policies: While enforcing stricter return policies to mitigate losses might be tempting, remember that leniency can drive sales. It’s about striking a balance that protects the business while ensuring customer satisfaction.
Educate Your Customers: Given the high percentage of returns due to fit and receiving the wrong product, ensure that product descriptions are accurate and detailed, especially for online sales.
Loyalty Over Exploitation: Reward loyal customers with more lenient return policies, while perhaps having stricter rules for one-time or infrequent shoppers.
Encourage In-store Returns: Given the high impulse purchase rate during in-store returns, motivate customers to return products to your location. It’s an opportunity for added sales.
Understanding and adapting to consumer preferences can be the key to sustained success for smoke shop retailers. While returns can be seen as a challenge, they can be turned into an opportunity with the right strategy and understanding of consumer behavior.