Posts Tagged ‘Retail Equation’

Service of Being Painted By the Same Brush

Thursday, March 22nd, 2018

Photo: brushesandmore.com

There are some companies set up so you can’t reach them and others you can contact but that don’t listen to sense: They see all customers as offenders. A grouchy or nutty customer or employee writes a terrible online review and the words glare back from the top of every Google search about you or your business. Just try to get rid of it even if insane and untrue. Same if a competitor trashes your restaurant or business on Yelp. Nightmare.

And now, a company you can reach but can’t reason with—Retail Equation—can forbid you from returning purchases or exchanging them to a particular store for a year according to its calculations, even if you’re innocent.

Khadeeja Safdar wrote “Retailers Crack Down on Serial Returners,” in The Wall Street Journal. I’m all for that: Cheaters and unreasonable customers are not my favorites. I recently wrote about 106 year old L.L. Bean’s tightening its generous return policy after too many abuses hurt their bottom line in “Service of Going Too Far: L.L. Bean Puts its Boot Down.” But with Retail Equation keeping track of returns and more for retailers, reasonable shoppers can be swept up in the fray and painted by the same brush as serial returners.

One Best Buy customer bought a bunch of cellphone cases as gifts for his kids, let his sons choose among the colors, planning to return the three they didn’t select. When he did his salesperson warned him that the returns would jeopardize future ones–and even exchanges–for a year even though he was well within the designated 15 day after purchase period.

Photo: videoblocks.com

He contacted Retail Equation that tracks returns for large corporations. His entire record showed returns of the three cellphone cases worth, in all, less than $90. The company refused to change its decision. According to Safdar the customer said: “I’m being made to feel like I committed a crime. When you say habitual returner, I’m thinking 27 videogames and 14 TVs.”

Safdar reported: “Stores have long used generous return guidelines to lure more customers, but such policies also invite abuse. Retailers estimate 11% of their sales are returned, and of those, 11% are likely fraudulent returns, according to a 2017 survey of 63 retailers by the National Retail Federation. Return fraud or abuse occurs when customers exploit the return process, such as requesting a refund for items they have used, stolen or bought somewhere else.”

WARNING: You could be on the Retail Equation’s black list if you return in store or online:

  • an expensive item
  • a significant percentage of purchases
  • something without a receipt
  • after the accepted period
  • things that are often stolen at that store
  • just as the store closes or
  • too many items at once

Photo: cartoonstock.com

In addition to Best Buy, other stores that use Retail Equation to track returns are Home Depot, J.C. Penney, Sephora and Victoria’s Secret. If you want to protest your ban, you can call Best Buy at 1-866-764-6979 the Journal discovered when researching the story.

“It isn’t easy for shoppers to learn their standing before receiving a warning. Retailers typically don’t publicize their relationship with Retail Equation. And even if a customer tracks down his or her return report, it doesn’t include purchase history or other information used to generate a score. The report also doesn’t disclose the actual score or the thresholds for getting barred.”

I understand the reason for such a policy, but think it should be used judiciously and not be directed by a company that seems to treat every customer like a sleazy thief. Safdar didn’t say if the policy referred to gifts. What if you give your Aunt Millie a portable heater from Home Depot and her son had already bought her one? Who will be dunned and subsequently penalized for the return? Are customers supposed to keep unwanted items instead?  Have you been confronted with such a punishment? Does it make you think twice about using a vendor that resorts to such measures?

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