The Trader Joes return policy is pretty amazing. For the first 5 years I shoped there I never even thought to bring something back, but then once a few years back I felt the need to give it a test -- and honestly I couldn't believe they'd even accept a label off a microwave dish and my word that it tasted awful.
The manager was cheerful about it, and told me I wasn't the first person to bring back that particular item. Then he reeled me in:
"I'll gladly get you a refund; did you have any other shopping to do today? I can have the checker credit your order."
"Oh... I suppose I do."
I returned an item that cost less than $2, and then ended up buying a week's worth of groceries at $50.
Zappos may be the only other company I can think of that has the kind of return policy that increases revenue in the long run.
Amazing timing - I returned my first ever item to Trader Joe's today, and the experience was memorable.
My wife bought blackberries this morning. Tonight, after dinner, we realized they were moldy. I went to exchange them at about 8:30 pm, just before closing. The store was out of blackberries, though. I called home to ask if there was anything else I should get.
"Olive oil" was the answer. So I walk up to the counter, ready to do an exchange, and the cashier looked at the $8 bottle of Olive Oil, the $3 carton of moldy blackberries, and said:
"Yeah those are about even. Have a good night." He then shooed me out the door without even ringing anything up on the computer.
That kind of autonomy is not what you expect from ANY retail establishment, let alone a grocery store.
I once bought a package of smoked salmon at Trader Joe's. It was gross, so I took it back, and the guy asked me to try a different brand instead. I said "OK," and it was gross again. I went back very apologetic just asking for a refund, and he asked me to try a third type. I refused entirely, until he MADE me take the third type of smoked salmon. That third type was really good and I've probably bought $200 worth of it since that day.
Even when you don't buy anything immediately, this kind of policy definitely helps hold on to customers.
About 12 years ago my friend and I were shopping at a local Middle Eastern grocery/restaurant (Holy Land in North Minneapolis for those local) and she happened to mention to the owner in passing that the halvah we bought a week ago had a funny taste. He immediately jumped on it "oh, we had some trouble with the refrigerator last weekend. Here, let me give you some more for free!" That was a complete surprise and to this day if I'm in the area, it's the first place I think of to stop and get a bite to eat at.
I've found over the years that most places have such mediocre service that anyone who rises just a bit above the mean sticks in my mind and I tend to patronize their business from that point on.
Target used to have an incredibly generous return policy as well, no receipt was no problem, and they'd take back things like dead plants that had no chance of being resold. Store credit is a helluva drug at stores with a wide array of goods.
The manager was cheerful about it, and told me I wasn't the first person to bring back that particular item. Then he reeled me in:
"I'll gladly get you a refund; did you have any other shopping to do today? I can have the checker credit your order."
"Oh... I suppose I do."
I returned an item that cost less than $2, and then ended up buying a week's worth of groceries at $50.
Zappos may be the only other company I can think of that has the kind of return policy that increases revenue in the long run.