Get clarity on the situation: 1st ask to clarify if this a commodity market or a speciality market. for this analysis I will assume it is a commodity market as also it was mentioned it was competitive. 2nd will who the customer was - if it was a high spender and a repeat spender or a normal. for now I assume it will be normal.See less
customer persona - i will further check about customer if there is a spend track record and if what was being ordered will trigger further orders.
customer need summary: customer wants to return a product and past expiration date.
cut thrrough prioritization: will calculate the cost to restock and any special terms with the vendor of product. Assume product cost is $100. Assume return/restock cost is $20 including shipping. assume customer to spend $500 and likely generate $50 in profit in 12 month period.
Possible solutions: 1. reject request as time has expired, 2. if customer wants exchange consider option, 3. accept and take hit of $20.
Tradeoffs: since the is new player, some flexibility is needed to enter a competitive market. at same time facing losses will not be right decision. Here assume there is good will generated and trend of $50 in 12 month exceeds the hit of $20, I would proceed and try to negotiate an exchange. if that does not work will give one time hit and allow return.
metrics: will put the customer on watch list to evaluate if there are any further sales and good will earned by this action and then will formulate future actions in similar situations based on this result over a 3 month period.