Chris Reddick (President and CEO at Clarity Ventures) and Ron Halversen (Vice-President of Sales and Marketing at Clarity) talk about the importance of notifications and how to deal with returns.

Part 5 of a 7-part series (Return to Part 4)

RON: Chris, why don't you dive into some of this information, especially from the technical information on how to deal with notifications withing group buying software? I love your comment about the expectations setting, and that is also really true around returns because now they're usually upset when they want to return something. So trying to retain that customer is even more important now when they're mad. And so now all said notifications have to work and they have to be timely. 

CHRIS: That's right. This is a really important one for sure, for the exact reason that you just stated. Normally, when there is a return, there's an opportunity to do the right thing and take great care of the customer. And this is mostly about communication and expectations. So the notifications are important for both the customer and for the internal team. 

One of the things that's most challenging about this is, a lot of times, if we're not fully integrated to how your team handles returns, we're going to be asking them to change their process. And that can be really tough. In theory, it’s not. It's just, “Do this extra thing.” But we're human beings. So what we want to do with this software is make it so that it just works with how you operate your business already. 

How do you do returns right now? Where does the information go? And let's get that same information in that same place on the group buying platform so that people can focus on doing their job, not learning something new. So that's the first thing. 

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CHRIS: The second big piece is how do you communicate around returns right now? Maybe we want to improve that with the notifications with this software, but fundamentally, a lot of the principles ought to be the same, and maybe we're looking to incrementally improve that. But ultimately, it should be a matter of both internal and external notification for folks so that we're keeping them appraised and managing the expectations.  

The other thing that I want to say about returns is, to some extent, there's a lot of fidelity of information withing the buyers group platform that the user can provide with their return. This can be things like, what is the exact item, what are the reasons [for the return]—maybe we can incorporate logic, and this is how our system is set up now so that there's a dependency. When someone selects a reason, then they can drill down further, and we can have some workflow, so that if it's a certain reason, we might be able to connect them with the manufacturer and have an agreement with the manufacturer that they're going to fulfill returns very rapidly. That can make this a faster process for our users. 

The other thing that we can consider is, whenever we're dealing with a return process, the customer is busy. They don't do this all the time. And so how can we explain it to them? Like you said, Ron, in this  expectation setting piece, how can we explain it to them? Not because they can't figure out something complicated, but because they're busy and they don't need another thing to have to apply their brainpower and their energy to. 

So how can we make it really, really simple for every member of the buying group? Just a few simple steps and keep it very clean and make it very concrete and then keep them appraised. I’m clearly not passionate about this part of the process at all! 

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RON: The number of conversations you and I have had over the last decade about it all comes back to integrity, right? If you don't have integrity, you're not going to succeed. But if you have integrity, even when things go awry, if people know you have integrity and you're going to take care of them, that goes a long way. 

Let's talk about some of the considerations about the members themselves and about buyers groups and some of the things that the platform and the catalog may need to do with regard to some of the different members. Obviously, with our platform, one of the things that I always talk about is the custom ability and the scalability, right? Because one thing I know for sure, just like the weather here in Texas, wait 15 minutes and it's going to change 

People's businesses change, too. You may have had your business last 50 years and say, “We've done business this way for the last 50 years.” If we sat down and really talked about all the things that you changed over the last 50 years, you would be surprised if you started writing it down. 

Most people just think nothing ever changes, but everything changes and it changes all the time. Some of it is within your control and a significant amount of it outside of your control. So you want to make sure that the platform can scale both up and down, both in and out, depth and breadth. 

Consider the long-term impacts of the possible group purchasing platform integrations. One of our clients—Chris mentioned something earlier about millions of SKUs. It reminded me of one of our clients—he came to me and said he had 50 million SKUs. And I said 50 million SKUs. That's a first for me. I mean, we've got a couple of clients that are in the millions, but 50 million, that that's new to me. I've never heard of anybody with 50 million. 

And he said, “Well, I've been in the business for 75 years, and although between me and my suppliers I only stock 3 million SKUs, my platform has every single part number for the last 75 years, what today's replacement part is for that part number, as well as every competing part number and every other manufacturer and OEM part number. So for every part number that I have, I might have anywhere from 3 to 10 additional part numbers this part is a replacement for. 

If anybody comes to that site looking to fix this water heater from 37 years ago built out of this country and they put in a part number, I have to have the replacement part for that for every single piece of equipment out there for the last 75 years.” 

So you need to make sure that as part of the long-term implications of the integrations are the part numbers, the replacement part numbers and the ability to serve those clients. Chris said it quickly, you want to be able to serve them quickly. 

 

Returns Can Be Easy

Yeah, you read that right. Don't believe us? We'll prove it to you.

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Continue to Part 6 to learn about hard and soft stops in pricing.