Littlewoods "relents" and refunds reclaimed vouchers

Apart from the fact that there are too many words starting with "re" in the headline, the only two interesting things about this story are its inevitability and the peculiar skill of managing to look curmudgeonly even when giving away money...

We covered a little while ago our amazement at Littlewoods' heavy-handed approach to reclaiming voucher values it believed had been redeemed outwith the terms of their issue. Yes, they were within their rights (as Liverpool's guardians of the public, the Trading Standard Office, agreed), but we felt that the viral marketing benefit could have outweighed the alleged loss. We remembered Threshergate and their oops-we're-getting-free-advertising slip-up and wondered whether this mightn't be a very lucrative marketing effect...

Anyhoo, we now see that Littlewoods have relented: "Littlewoods stages refund U-turn", hoots the BBC.

Littlewoods angered some shoppers by demanding a refund from those who it said the discount was not meant for. Littlewoods maintained that it was entitled to take a "firm stance", but was relenting out of "goodwill". It also promised to return the £25 and any related charges to those customers who had paid the retailer back.

Customers have the responsibility to ensure they are using a discount for which they are eligible - Littlewoods.

It's a pity that the u-turn (or 'correct turn' - depends on your point of view) could not have been more graceful - a communication that starts "Bah, Humbug..." is not the most festive of seasonal messages...
Littlewoods was only able to take this position given the high proportion of customer who run credit accounts - it would have been more difficult for a high street retailer to run a batch of extra charges onto customers' credit cards two months after they'd visited the shop!

We at IR Towers still maintain that no sensible voucher should lose money for a retailer and therefore a wider-than-expected distribution should offset the loss of margin with the benefit of increase cash takings. Littlewoods have been caught out temporarily but they're certainly not going to be the last and at least it's no "Hoovergate" . With promotions so much a part of etailing, and increases in customer segmentation, e-marketers need to plan with ever-greater care their promotional strategy - and what their response will be as and when these promotions escape into the wild - into the hands of the less-attractive, un-targeted, unwashed and ungrateful "customer base at large".