RECOMMERCE doesn't dilute sales, it increases customer understanding

RECOMMERCE doesn't dilute sales, it increases customer understanding
Tags: Consumer Behavior, Customer Experience, Customer Service
October 28, 2011

Trendwatching.com recently released its September Trend Briefing entitled Retail Renaissance. In it, they describe RECOMMERCE as a new retail standard. By trading in their old (shoes, electronics, cars, clothes, appliances, toys, etc.) for a 'discount' on what's new shoppers:

Free space in their homes
Lessen their guilty feelings about overconsumption
Feel like they're saving money
Get the benefit of making a positive recycling decision

Most retailers already have the mechanisms in place to take advantage of or encourage this new trend. It's called returns.

Now, the returns capability can transform from cost center into cash cow as it:

Drives new product sales
Helps companies improve their recycling scorecards
Creates a 'vacuum' for repurchases to occur sooner
Keeps 'last year's look' off the street
Gets customers to trade up to newer products

RECOMMERCE can make your balance sheet happy too. For example, you don't have to pay to ship the product all the way back to the warehouse. Local charities or recyclers are very happy to pick up merchandise (for which you can get a tax credit too). You don't have to do a 1:1 equal value exchange. Coupons to try new products or discounts on product combinations are perfectly acceptable.

But what about experiences and services? Can you return those too?

You can't if you believe the traditional definition that a service, once delivered, is consumed. It's over. You can't get the time or the experience back again.

You can if think outside the box. For example:

"Bring in your receipt from your last clothing purchase for a free color analysis in the men's department." [Benefits: deepens customer profile, introduces new service, gets customer back into the store, builds 1:1 relationship with skilled rep]
"You've got an appointment to see an Apple rep to check out the new laptops. Would you like to upgrade that to a visit with one of our business specialists to also learn about our new business-only programs and discounts?" [Benefits: segments business customers, proactive communication wins allegiance, introduces new service with higher sales potential, earns valuable word-of-mouth referrals]
"Come in and sell us on . If you get one of our market research team to buy it from you, we'll give you a brand new for free." [Benefits: teaches the brand customer's reason for purchase, helps the customer feel involved, offers a fair trade feeling, newsworthy]

Summary: While you may or may not like the idea of RECOMMERCE yourself, you can use the concept as a launching pad for ideas that get you involved in more of your customer's lifecycle with the products you sell them. Knowing your customers better is smart retailing.