Refund requests and returned merchandise are a tremendous waste of your
company's time, effort, and money.
But the solution is remarkably simple.
Why do customers request refunds?
It's not faulty merchandise or poor services.
Nor, usually, dishonest customers. And rarely because a customer found a
better price elsewhere.
So what is the one factor most responsible for refund requests?
Buyer's Remorse.
It starts the moment the transaction has been completed. It starts because:
1. Most customers have been burned in the past. So it's only natural for
them to have a healthy dose of skepticism.
2. Most people tend to worry, looking for something to go wrong, even though
few of the things they worry about ever actually happen.
It is driven not by logic, but by emotions.
"Maybe this was a mistake. I don't really need this." "My friends will think
I'm an absolute idiot for spending money on this." "It really looks different
from what I expected." "I thought it would be easier to operate."
Studies have determined that 90% of what we worry about never comes to pass.
But we continue to worry about anything and everything nonetheless.
If you accept this, you'll be able to take the proper steps to do something
about it.
How to cut your refunds and returns to almost nothing
Now, here's the good news. Turning this ugly situation around is actually
quite easy. All it takes is the right tool for the job.
This tool is Post-Purchase Reassurance.
Post-purchase reassurance means that
À You recognize that your customers will experience buyer's remorse
À You also recognize that the cause of this problem is rooted in the
emotions, and
À You take the necessary action to completely neutralize the
disastrous effects it can have.
So you reassure your customer that their worries are unfounded.
You send them a very personal follow-up letter immediately after the sale.
This includes:
À A sincere thank-you to your customer.
À A restatement of one or more of the key benefits your customer gets
from your product or service
À Additional information and useful tips on how to get the most from
their recent purchase.
À Assurance that they made a wise choice by buying your product or
service.
À A sincere reminder that you are always available to provide
additional help.
Why this works so well
It makes the customer feel good, which makes them a satisfied customer.
It underscores your reputation as a good person and someone worth doing
business with.
It creates what you might call "The Slight Bribe." Few people can accept a
gift without feeling somewhat indebted. That's just a fact of human nature. And
you can ethically use this natural trait to your advantage.
It helps your customers tell themselves, "I guess I was wrong. These people
really aren't so bad after all. In fact, this product is just what I need."
And once you've proven yourself, you have a customer for life.
=========================================================
Jonathan Gray has been helping people succeed in small
business for three years. Join his free "Help For
Beginners" Course now - free tips on HOW to do it; WHERE
to go:
http://www.businessrich.com=========================================================
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