innovative thinking: talking shop Don’t let receipts lead to fading loyalty


Retail specialist law firm Gordons partner Andy Brian asks whether electrical retailers should be doing more to ensure the quality of their receipts and warranties


I


n recent months, there has been increasing discontent amongst consumers over the quality and durability of receipts, especially those which serve as a warranty for electrical items. While this isn’t the most exciting issue of all time, there a serious practical impact for consumers. The issue has been compounded by


thermal printers which have been recently introduced by a number of retail chains. Rather than conventional ink cartridges, they use direct heat to transfer text onto temperature-sensitive paper, and it has become evident that the writing can fade if the receipt is exposed to light or heat, including body temperature.


For the sake of good


customer relations retailers must be seen to be doing what they can to make things as easy as possible for their customers


This has left some consumers unable to


return products, even though they are still within their warranty period, and many have turned to social media to raise the issue. One campaign group recently urged customers to complain to the Retail Ombudsman if they are challenged in store, warning that retailers would be ‘breaking the spirit’ of consumer rights laws if they refuse to accept a faded receipt or warranty. For me, the use of the term ‘spirit’ is


absolutely critical in this debate. While there is no legal obligation for a retailer to provide a receipt, for the sake of good customer relations retailers must be seen to be doing what they can to make things as easy as possible for their customers, even if that means investing in new systems which will deliver no immediate cost-benefit. Otherwise they will lose trust and loyal customers will take their money elsewhere. To some extent, the context was set last


year with the introduction of the Consumer Rights Act 2015. It was the biggest shake-up in consumer law in a generation, introduced to simplify, strengthen and modernise the law, giving greater clarity and transparency over the rights of shoppers. By law the onus is on the customer to


provide proof of purchase via a receipt or bank October 2016


statement, but retailers really should be taking the burden away from their customers – and demonstrating that fact too. In a competitive retail environment where


repeat business is critical, when consumers have greater protection and are more aware of their rights than ever before, ask yourself: would you query a return within warranty if your own receipt was ineligible? So, what is the solution? Firstly, it is time for


more retailers to introduce e-receipts for store purchases, particularly for larger ticket items such as electrical goods. It would require up front IT investment, but it would generate cost savings in terms of reduce paper and printing, and it is the natural progression in an increasingly digital world. Argos was amongst the first to introduce


e-receipts for over the counter purchases back in 2014, and many others have followed. For some demographic groups, it has become an expected norm; even putting the printing issues to one side, receipts clutter up wallets and are prone to be lost. In fact, research last year from software group Bronto shows as many as 45% of consumers would prefer to receive a digital version of their proof of purchase. There are added benefits for the retailer too, not least in marketing opportunities once you have the customer’s email address (subject to privacy issues of course!). The next stage might be for retailers to link up with one of the numerous apps that enable customers to scan and store their receipts electronically in an online ‘wallet’. The more challenging dilemma for electrical


retailers, however, is coming up with a solution for less tech-savvy shoppers. In this case the


onus could be on the retailer to maintain an online record of sales, which can be accessed in store in the case of returns. There are numerous CRM systems available and it would not require particularly sophisticated (or expensive) software. SMS receipts have also been trialled, particularly in America, including a major rollout by WalMart in 2014. Whichever route you choose, one thing is clear from recent developments; a receipt might only be a record of purchase and at first glance not the most pressing issue facing retailers, but get it wrong and it could have adverse implications on your brand. This is not an issue to be ignored.


Some consumers have seen issues with fading or poor durability of receipts, causing potential for lost trust in a retailer if a return is required


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