Discussion 3 - Customer Returns, Reverse Logistics,

& Diversity
1. Describe two problems companies have when consumers receive a faulty
product or service. How might they be resolved?

Reverse logistics and a potential decrease in revenue are obvious implications

companies must consider when a customer receives a faulty product or service.
While those areas of concern should be given careful attention, there are other
equally important problems businesses must address. Two other areas of concern
include the logistics related to the faulty product/service and customer retention
costs.

Remedies to address logistics related to faulty products and/or services and

customer retention costs:

Implementing an efficient and effective returns management system. Having a

returns management system allows the business to make informed decisions, make
product adjustments, create a customer value system, and effectively manage the
reverse logistics process (Simmons, 2021).
2. Angry customers are a challenge for every company. Describe why any
two of the methods described in this unit would be useful in resolving
customer issues

It should be noted that utilizing reverse logistics best practices and a returns
management system are essential when dealing with angry customers because they
answer these questions: So what, now what, and what next? Both areas create a
customer value opportunity, include return/refund automation, and give the
customer a solution to the problem. (Sunol, 2021).
3. Companies face diversity in their customer base (religion, sex, race,
education, finance, and so on). What can they do to assure that their
employees interact properly with customers who have different backgrounds
and behaviors?

To create an environment where customer service representatives (CSRs) are

professional and have the ability to engage with a diverse customer base, it's
essential that companies invest in diversity, equity, and inclusion recruitment.
Kimberlee from Harver.com perfectly illustrates the benefits of a diverse CSR
team with:
"And we all know that the key to successful customer service relies on team
members being able to connect with your customers" (Kimberlee, 2019).

Conversely, diversity in hiring is strategically sound. A study from McKinsey &

Company found that "companies in the top quartile for racial and ethnic diversity
are 35 percent more likely to have financial returns above their respective national
industry medians" (Hunt, Layton, & Price, 2015).

Additionally, companies should provide situational training that prepares CSRs for
the litany of customer service-related exchanges.

Effectively this means the company and by extension, the employee has a high
level of proficiency in inclusive strategies. Customer journey mapping, as well as
demonstrating respect and empathy, are examples of inclusive strategies. These
strategies benefit the bottom line by focusing on lowering attrition, retaining top
talent, and amplifying the employee experience, all of which have an impact on
revenue and profitability (Mills, 2020).
References
Hunt, D. V., Layton, D., & Prince, S. (2015, January 15). Why diversity matters. Retrieved from McKinsey &
Company: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-
insights/why-diversity-matters

Kimberlee. (2019, September 10). 7 benefits of diversity in customer service at your company. Retrieved
from Harver: https://harver.com/blog/diversity-in-customer-service/

Mills, F. (2020, October 28). 5 benefits of developing diversity in customer service. Retrieved from
TechTarget: https://www.techtarget.com/searchcustomerexperience/tip/5-benefits-of-
developing-diversity-in-customer-service

Simmons, K.-J. (2021, November 11). Returns management: the ultimate guide (policies, best practices &
prevention). Retrieved from Fit Small Business: https://fitsmallbusiness.com/returns-
management/

Sunol, H. (2021, August 21). Five benefits of reverse logistics management to your business. Retrieved
from Cyzerg Warehouse Technology: https://articles.cyzerg.com/benefits-of-reverse-logistics-
management-to-your-business