Retail Observer

RETAILOBSERVER.COM AUGUST 2016 58 I n part one of this two-part report on returns, our retail focus group confirmed that while returns are an industry-wide issue, the industry does not appear to have a standardized policy for dealing with returns. The group also agreed that although educating the customer can help lower returns, they said that even so, returns can and do take a bite out of profitability. When asked for hard numbers regarding returns, the group reported individual rates of returns ranging from a low of 1% to upwards of 7%. An interesting observation came to light when the group was asked if they saw any correlation between the incidence of returns and the cost of the mattress. Reflecting the opinions of the group, Jeff Willis of Famous Tate, said, "The lower the price of the mattress, the lower the rate of return either due to comfort or defect." Cenatiempo of Appliance and furniture Mart agreed. "We are seeing lots of returns with mattresses selling for $999 and up," he added. The reason, Cenatiempo added, is that the consumer's level of expectation rises as does the price of the mattress. COMFORT ISSUES TIED TO RETURNS The group also reported that comfort issues, rather than structural or defect issues, were the primary cause for returns. Specifically, the retailers agreed that a key issue linked to returns was the firmness of the mattress. "Many of our customers want a firm mattress then after they get it home they realize they picked something firmer than what they really were after," said Willis at Famous Tate. The retailers also had varying ways to deal with returns. Illingworth, for example, uses a third-party inspection company that goes to the customer's home to make the inspection. Steve pays the firm between $35 and $45 to conduct the inspection, but says it is worth the fee because, "as a third-party provider, this eliminates any animosity or ill will between us and our customer." Balisteri at Colders said, "We stopped doing warranty claim inspections because the vendor won't reimburse us for them. We give the customer guidelines on what do to but if they are unable or unwilling to follow those guidelines we charge them $59 for an inspection. If it turns out to be a defect we reimburse them. They go to our website and put in a claim directly to Serta. Before, we were wasting many hours in service calls and wasting the serviceman's time. Now, we've cut our returns from about 7 down to 2.5-3% and lower." Ira Fruitman of Bedroom Express, also said he sees a connection between spiffs and mattress returns. "Often when a salesperson realizes that he or she can get a spiff from a supplier, that's the brand the salesperson pushes. But it seems that the mattresses with spiffs on them tend to be the ones we have issues with in terms of returns." Finally, the group strongly agreed that the majority of issues with returns can be addressed at the point of sale. Spending time on the front end with the consumer explaining potential issues and problems before the consumer sleeps on the new mattress can significantly reduce problems and returns after the sale. KEY OPPORTUNITIES/TAKEAWAYS FROM THE ROUNDTABLE: 1. Have a clear, concise return policy in writing. Enforce it, in part, by having the customer read it and sign it. 2. Encourage your sales team to match the customer with the right mattress the first time. This can be done by front-end communication and education. 3. If you offer a comfort guarantee, make buying a mattress protector a non-negotiable in order for the customer to utilize the guarantee. 4. Use the mattress sale as an opportunity to sell the customer other new sleep accessories such as new pillows, which can also impact how well the consumer adjusts to his or her new sleeping surface. 5. Since the majority of returns tend to be comfort- not structurally- related, encourage your customer to sleep on the new mattress for a long enough period of time to get used to it. 6. Prior to taking a mattress back, give your customer clear guidelines on the type of documentation you require. 7. Consider allowing your customer to initiate and facilitate a return online at your website. E. Michael Allen, BrandSource VP of home furnishings, has been with the organization for 15 years and overseen the growth of the category to one of the largest in the country. Mike Allen Furniture Trends RO BEST PRACTICES: MATTRESS RETURNS PART II Key retailers reveal how to minimize returns and maximize customer satisfaction

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