Stores hope tech advice will mean fewer returns

When Bill Hedlund unwrapped his MP3 player for Christmas, the 63-year-old didn't know what the gadget was, let alone know what to do with it.

Rather than return the device, or let it sit in the box like the digital camera he received last Christmas, Hedlund brought the digital music player to a free training session last week at Circuit City in Braintree, where he learned how to rip CDs, download music, and transfer songs to the player.

''I was so clueless," Hedlund said. ''These things are really intimidating."

Electronics merchants are hoping that aggressive efforts to help customers like Hedlund understand their gadgets will mean fewer returns this holiday season. Besides increasing the number of in-store clinics, a number of retailers, including Circuit City, Dell, and Tweeter, pushed installation and technical support packages as gifts for Christmas.

As the popularity of electronics soars -- holiday sales climbed 10 percent this year to $8.2 billion -- returns are also on the rise. For example, the Consumer Electronics Association reports that returns of digital cameras jumped to 9 percent from 6 percent over the past three years at a time when holiday returns in general declined.

Merchants must do a better job of demystifying electronics for technophobic customers who are less willing to read past the third page of the manual, according to Marshal Cohen, chief retail analyst for the NPD Group, a market research firm in Port Washington, N.Y. Otherwise, Cohen said, retailers will face mounting returns from confused consumers, and they will miss opportunities to sell more accessories and other merchandise.

''We're in the second wave of the digital generation and these consumers are less tech-savvy," Cohen said. ''Next year, the late adapters won't even look at the manual. That means stores have to do a better job holding consumers' hands."

After Circuit City customers returned some 15 percent of MP3 players last holiday season -- the majority said they couldn't figure out how to use the devices -- the company teamed up with PlumChoice, a local business, to help consumers beat the inevitable post-holiday technology frustrations, said Ted Werth, chief executive of PlumChoice.

Circuit City offered PlumChoice gift cards, that, for $34.99, allow people to get live support online to set up and learn about their MP3 players from the company's remote computer support services. It's similar to the tech assistants at Best Buy, known as the Geek Squad. But PlumChoice is a less expensive, remote service, while the Geek Squad mainly features pricier at-home support.

Already, Circuit City's efforts seem to be paying off. Marco Pacheco, a Circuit City manager, estimated that returns for MP3 players are down 25 percent from last year at the Braintree store.

Industrywide, however, it's too early to tell whether stores successfully cut down on returns. In general, about $1.6 billion in electronics merchandise is returned every year and never repurchased, according to the Consumer Electronics Association. Some of these returns are because consumers find better deals or receive duplicate gifts. But a good share is blamed on customer confusion. Companies can make up some of that money by charging restocking fees, usually 15 percent, but selling open-box electronics is difficult and these items are discounted anywhere from 10 percent to 60 percent.

''Returns are inconvenient for the consumer and they're costly for the retailer," said Jennifer Davis, a Dell spokeswoman. ''We want to keep our returns to a minimum and make sure our customers can enjoy the products."

In November, Dell began promoting its new on-call service, starting at $49 for a 30-day trial. The program lets customers call with common how-to questions, software issues, and virus problems. Dell also launched a pilot website, www.djlife.com, to help troubleshoot for its MP3 players. If successful, it will create similar self-help websites for other merchandise.

In the meantime, Dell plans this week to e-mail customers a newsletter with tips and ideas for getting the most out of their new gadgets. Best Buy sent its e-newsletter last week, saying: ''You just received the tech gift you've been clamoring for from a friend or loved one, but you can't seem to get it to work the way you know it should. Sound familiar? No worries. Geek Squad Agents are standing by across the country to help."

Even the Consumer Electronics Association is stepping up to combat consumer confusion. In November, the group launched a consumer education website, www.MyCEknowhow.com that equips consumers with the latest information on digital cameras. The group is adding another chapter this month on MP3 players.

At the Circuit City in Braintree, Hedlund seemed to have his MP3 player under control after spending a half-hour with a store employee.

''That's all I needed, a little push," Hedlund said, grinning. ''I'll be dancing by New Year's Eve to my music."

Jenn Abelson can be reached at abelson@globe.com.