Turning Gift Returns and Exchanges into Business Opportunities

December 27, 2023

You hate to see it coming—a customer with your bag in hand. You know where that’s headed. No matter how helpful you were or how great your products are, the holiday season isn’t a holiday without a wave of gift returns and exchanges. While it's easy to view these transactions as inconveniences, savvy businesses recognize the untapped potential these transactions hold. There’s an art to handling gift returns and these strategies will help you transform them into valuable opportunities for building customer loyalty and business growth.

 

 

What Every Business Must Know About Returns

A return is not a personal attack. But it is a way to create an army of loyal customers. While you want to safeguard against fraud and theft returns, taking the pain out of returns may cause people to buy from you in the future. Costco and Nordstrom have loyal followings because of their liberal return policies.

 

Here are a few tips to ensure your policies are just as beguiling.

 

Streamline the Return Process

The first step in mastering gift returns is to ensure that the process is as smooth and hassle-free as possible. Simplify your return policy, clearly communicate it to customers, and invest in user-friendly return systems. An easy return experience fosters customer trust and sets the stage for positive interactions.

 

Convert Returns into Exchanges

Encourage customers to consider exchanges rather than outright returns. Create incentives, such as limited-time discounts or exclusive offers, to motivate customers to explore alternative products. Turning returns into exchanges not only retains revenue but also introduces customers to a broader range of your offerings.

 

Gift Return Specials

Offer exclusive promotions or discounts for customers returning gifts. This not only turns a potentially negative experience into a positive one but also demonstrates your commitment to customer satisfaction. Additionally, you can incentivize them to upgrade to a higher-priced product by offering a discount or bundle deal. This can increase your average order value.

 

Consider bundling returned items with complementary products to create attractive package deals. You can even give the packages funny names for “bad” gift givers to attract attention such as “I told him I hated orange” or “Next year I’m giving him coal.” Use this approach in your in-store signage as well. Levity helps brighten the mood around a return.

 


Leverage Customer Feedback

Use gift returns as an opportunity to gather valuable feedback. Implement surveys (at the register with QR codes) or ask customers for input during the return process. Understanding the reasons behind returns can provide insights into product issues, customer preferences, and areas for improvement, helping you refine your offerings.

 

Create a Seamless Experience Everywhere

Ensure a consistent and seamless experience across all channels, whether customers make returns in-store or online. Integrating your online and offline systems not only improves efficiency but also enhances the overall customer experience. A unified approach strengthens customer relationships and fosters brand loyalty.

 

Additionally, returning things online has a bad reputation. If you can make it easy, people won’t hesitate to buy from you online in the future. Convenience is key to future buys.

 

Personalized Communication

Tailor your communication during the return process. Personalized emails or messages expressing empathy and understanding go a long way in building customer trust. Provide clear instructions on the return/exchange process and keep customers informed about the status of their transactions.

 

Build a Return-Friendly Culture

Cultivate a return-friendly culture within your business. Emphasize the importance of customer satisfaction to your team and empower them to handle returns with a positive mindset. A customer-centric approach builds trust and positions your brand as responsive and reliable. Don’t consider a return a failure but an open door to win them over in the future.

 

Deepen Customer Relationships

Train your staff on the following best practices:

 

  • Go beyond the transaction. Instead of a robotic exchange, actively listen to why they want to return. Is it the wrong size? Not what they expected? This opens the door to personalized recommendations, suggesting other products that better suit their needs.
  • Understand if it was a gift. Before you fall all over yourself apologizing for a lack of quality or whatever the case may be, make sure you understand the nature of why they’re bringing it back. It could be that their significant other bought the wrong size or the cologne smells too much like his mother. Knowing this information can help you make a valuable recommendation, and it also provides an opportunity to build a relationship. We’ve all gotten gifts that just weren’t right for us but that doesn’t mean that everything you sell is that way. Sometimes the recipient just needs a little nudge to finding what they love. If they bought the item themselves and are dissatisfied…
  • Turn complaints into compliments. If a product falls short, don't just refund their money. Offer a discount on a similar item, a gift certificate, or even store credit that incentivizes them to return. This shows you care about their satisfaction and want to keep them as customers.
  • Use returns as market research. Track what items are returned most frequently. Are there quality issues? Is the product description somehow misleading? Identifying common return reasons can help you improve your product line and messaging in the future.
  • Analyze return patterns. Do certain categories see more returns during specific seasons? This data can inform your inventory management and marketing strategies for future holiday seasons.
  • Go the extra mile. Offer to gift wrap exchanged items for free, include a handwritten note of apology or appreciation, or provide a small token of goodwill. These small gestures can transform a frustrated customer into a loyal advocate.
  • Promote "second chance" items. Create a dedicated section for returned items in good condition and offer them at a discounted price. This attracts bargain hunters and clears out inventory.

 

Mastering the art of gift returns is not just about mitigating losses but seizing opportunities to strengthen (or build) customer relationships and drive business growth. By making it a good return experience, you can transform the post-holiday return season into a strategic advantage. Watch as these opportunities unfold into long-term customer loyalty and satisfaction.

This article published by the Leavenworth-Lansing Area Chamber of Commerce with permission from Frank Kenney Chamber Pros Community.


May 6, 2025
Wow your customers. Exceptional service sparks natural buzz. Seed the idea. Subtle cues make referrals more likely. Give to get. Reciprocity drives more introductions. Make sharing easy. Equip clients with shareable content. Recognize your champions. Public thanks reinforces behavior. 615 words ~ 3 min. read In a world saturated with marketing messages, word-of-mouth remains one of the most powerful business growth tools. Yet asking for referrals can often feel pushy or awkward. The good news: it’s possible to spark more referrals—organically—without ever making a direct ask. Here’s how to build a referral engine that runs on generosity, excellence, and subtle nudges. Wow Your Customers It all starts with the experience. When customers are truly impressed—whether through speed, attention to detail, or delightful service—they naturally want to tell others. Prioritize consistency and small touches that surprise people. It’s these micro-moments that turn satisfied customers into raving fans. Make Sharing Easy Equip your customers with materials they’ll actually want to pass along. This could be helpful blog posts, visual guides, short videos, or checklists—anything that reflects your expertise and is easy to forward. Think of these as “conversation starters” your customers can use to talk about you without the awkwardness. READ MORE: Customer Referrals Are Contagious by Harvard Business Review Seed the Idea Gently You don’t need to ask for referrals outright—but you do need to make it known that they matter. In your email signature, on your invoices, or in post-project wrap-ups, include a line like: "Many of our best clients come from referrals. Thank you for spreading the word!" This keeps referrals top of mind while preserving the tone of appreciation. Give to Get Referrals are a two-way street. Proactively refer your clients, partners, and vendors when you can. When others see you championing their work, they're more inclined to do the same for you. This builds goodwill and a sense of mutual investment. READ MORE from Forbes on the power of reciprocity in business Recognize Your Champions Gratitude is a multiplier. When someone sends a new client your way, acknowledge it right away. A handwritten note, a small gift, or a public thank-you can make your advocates feel valued—and likely to refer again. The goal isn’t to incentivize; it’s to appreciate. Recognition cements the behavior you want more of. Bottom Line You don’t need a slick script or a referral program to grow through word-of-mouth. By focusing on service excellence, subtle cues, generous networking, and authentic gratitude, you create an ecosystem where your customers want to talk about you. Organic referrals are not just a bonus—they’re a reflection of how well you’re doing the fundamentals. --- The Leavenworth-Lansing Area Chamber of Commerce is a private non-profit organization that aims to support the growth and development of local businesses and our regional economy. We strive to create content that not only educates but also fosters a sense of connection and collaboration among our readers. Join us as we explore topics such as economic development, networking opportunities, upcoming events, and success stories from our vibrant community. Our resources provide insights, advice, and news that are relevant to business owners, entrepreneurs, and community members alike. The Chamber has been granted license to publish this content provided by Chamber Today, a service of ChamberThink Strategies LLC.
May 5, 2025
Another calendar page has come and gone and with it, we’re ushering in May and Small Business Month. There’s no better time to show some local love! Small businesses are the heartbeat of our community. They’re the coffee shops where we meet friends, the boutiques that stock one-of-a-kind finds, and the service providers who remember our names and donate to our causes. But before you think this is a new call to spend money, know that you don’t need a big budget to make a big impact. Every purchase (yes, there’s the money but wait…), referral, and review goes a long way toward helping small businesses thrive. Whether you have $5 or just five minutes, we have some creative, fun, and meaningful ways to support small businesses this month. So get out into our community and support those who help make it what it is. Small Business Is a Big Deal When we say support small business, most people think of our Main Street shops. But “small business” is any business that employs under 200 people. Ask yourself, what percentage of your weekly purchases are done with small businesses? Can you increase that percentage this month? Make a list of where you currently do business. Pull out your credit or bank card transactions. See where your money is going and how that could change this month. For instance, if you visit Starbucks every day, try a local place on the weekends or swap Starbucks for local out completely for this month. How does that feel?  But don’t stop there. There are a lot of things you can do that don’t cost a lot. 10 Fun Ways to Celebrate Small Business Month 1. Shop Small (and Share It!) When you buy from a local business, snap a photo and tag them on social media. Your shoutout helps them reach new customers—and shows your support in a way that goes beyond the checkout counter. Plus, a picture is worth a thousand words, and maybe even a purchase or two. 2. Leave a Glowing Review A five-star review on Google, Yelp, or Facebook can boost a business’s visibility and reputation. Take five minutes to write something kind about your favorite local shop or restaurant—it’s free, fast, and powerful. 3. Take the “Local Love Challenge” Try to do one locally focused thing each day this week: Monday: Grab coffee from an indie café Tuesday: Tag a small business you love on Instagram Wednesday: Leave a review Thursday: Buy a gift from a local boutique Friday: Recommend a local service provider to a friend Saturday: Try a new-to-you local restaurant Sunday: Post a selfie at your favorite business add the hashtag #ShopLocal #ShopLVCO Or if you want a monthly challenge instead, vow to spend $20 locally at a business you’ve never tried before or attend an event at a local business. 4. Buy Gift Cards for Later If you’re not ready to spend much now, consider buying a small gift card for a future visit—or to give as a birthday or thank-you gift. It gives businesses cash flow now and brings you (or someone else) joy later. 5. Host a “Small Biz Night Out” Make a night of it! Plan a dinner with friends at a local restaurant, pop into a few shops, and end with dessert from a neighborhood bakery. Bonus points if you post about your local adventure on social media! 6. Introduce a Local Business to a New Customer Word-of-mouth is still gold. Bring a friend to your favorite store, create a video/reel review on TikTok or Instagram, or tag someone in a post who might love a business’ products or services. Your recommendation could bring in a future loyal customer. 7. Get Involved in Chamber Events Check your local Chamber of Commerce calendar (like ours! Llchamber.com/events ) for small business events this month, networking opportunities, or to add your own! These events are a great way to discover new businesses and show your support in person. 8. Support Local on Social Can’t spend right now? That’s okay! Like (use the love emoji instead of just the thumb up), share, or comment on small business posts. It only takes a second to post a sticker or an emoji as a comment. Help them beat the algorithm and reach more people. Engagement matters more than you think. 9. Ask Businesses What They Need Sometimes the best way to help is to ask. Maybe they’re looking for volunteers, help spreading the word, or even someone to test a new product. Your time and skills could be just as valuable as a purchase. 10. Celebrate Them Loudly and Proudly Know a small business owner doing great work? Celebrate them publicly! Write a LinkedIn or Facebook post recognizing their contribution. Gratitude is contagious—and so is support. Small Business Month is more than a campaign—it’s a reminder that we all play a role in shaping the success and culture of our community. So this May, let’s think small, act big, and show our favorite businesses just how much they mean to us. Let us know how you’re supporting local this month—tag @llchamberofcommerce [FB] @lvlchamber [IN] and use #ShopLVCO so we can cheer you on! ----------- Christina Metcalf is a writer and women’s speaker who believes in the power of story. She works with small businesses, chambers of commerce, and business professionals who want to make an impression and grow a loyal customer/member base. She is the author of The Glinda Principle , rediscovering the magic within. _______________________________________ Facebook: @tellyourstorygetemtalking Instagram: @christinametcalfauthor LinkedIn: @christinagsmith
By Lauren Batchelor May 2, 2025
Resources for Small Businesses