Return It When You’re Done!
September 24, 2009
A company’s policy of loaning out tools helps build relationships with it’s customers.
Many people find ways to “beat the system” and get what they want – even if it means bending the rules a bit. But every once in a while, a company recognizes that this happens and turns it into a competitive advantage.
During a recent visit to our local Home Depot store, I was waiting for help from one of the employees who was speaking with another customer. The customer was asking about a special wrench used to cut PVC pipe.
The employee found the tool the customer was looking for. Upon looking at the price, the customer did a double take; it was significantly more expensive than he had expected. Seeing this, the employee asked, “Are you only going to use this once?” When the customer said yes, the employee said, “Well, why don’t you pay for it now, keep the receipt and return it when you’re done using it?”
This got my attention, and when it was my turn for service, I asked about this conversation. The employee stated that it was their informal policy to “loan out” hand tools to their customers. You could simply buy the tool, use it once, and then return it for a full credit.
I asked if this was his own personal policy or the official Home Depot policy. He said that as far as he knew, it was a corporate policy.
Now, I’m sure people do this all the time, particularly with expensive, special-use tools. But Home Depot has made an interesting policy decision. By allowing this to take place – and even encouraging it – the company has taken a simple, but significant step towards enhancing customer loyalty.
And really, what are the chances that the customer will actually bring back the tool? It would require a special trip back to the store, and they would have to keep track of the receipt. I’ll bet that in most cases, the customer ends up keeping the purchased product anyway.
Home Depot made a competitive advantage out of a potential problem. By “loaning out” tools to customers, the company is building relationships with its customers. When a customer needs a tool for long-term use, what store will they think of first?
Are there any loopholes in your own customer processes that you could somehow sanction to enhance your customer relationships? It could be the start of a new corporate policy!
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