Refunds are bad for business because you not only lose customers but also lose revenues. However, it’s inevitable in business so anything we can do to minimize refunds leads to an increase in the bottom line. In this strategy, you’ll learn how to reduce refunds and keep the customer at the same time.
The secret is to make an irresistible offer to entice the customer’s greed gland so that he will be eager to take the offer and immediately forget about the refund.
How To Implement This Strategy
- Brainstorm an irresistible offer for customers who request refunds.
- For example, if you had an online training business, you can offer a store credit equal to double what they originally paid. So if they purchased a course for $30, they’re offered a “gift card” with a $60 value.
- Another option is to apply the principle of OPR (Other People Resource). Look for complimentary offers/bonuses from other vendors in your industry and bring them to your customers. This is a win-win-win situation because you can win-back customers while your customers get the best deal, and your other vendors are grateful to have a new lead.
- Once you have the irresistible offer, send an email to customers who request refunds. Using the example above of a double-valued store credit, the email looks like this:
Hi (First Name),
Thank you for giving our product a try, and I’m sorry you had an issue with your order. Customer satisfaction is our top priority, and I’m here to help you. While this product didn’t meet your expectations, I’d still like to get you the help you’re looking for with your online education.
I just messaged the owner and asked him a favor, and luckily he approved my request! Here’s what I can do for you. If you’re willing to give us another shot at helping you on your online education journey, you’ll really love this!
We actually have many other training courses that you might love a lot more than this product. So in lieu of your refund, I’d be happy to gift you a $60.00 credit to our store that you can use at any time.
This way you get way more spending power and you can use it on whatever you want whenever you want. It’s like a gift card so you don’t even have to use it on a single order if you don’t want to.
If you’re not interested in that, no worries, I can process your refund. I just wanted to give you a really special option to give you much more than you probably expected, and do our best to turn your disappointment into excitement, since I know I’m always looking for a deal!
Please note, we will not be able to offer a refund later if you decide to take advantage of this store credit. We really do have a ton of great products. You can check them out here, and let me know if you’d like the gift card option, or the refund.
P.S. If you take advantage of the gift card option, obviously you’ll get to keep the original product you purchased, too!