| Here’s a riddle for you...
What’s worse than not making a sale?
It’s making a sale, then losing it.
Refunds can be a huge pain when you’re in business. Especially since they first make you think you made a sale, only to pull a rug from under your feet, leaving you with a stinging refund cost.
That being said, were you aware of how some of the time when there’s a refund it’s not even your customer’s fault?
Common sense suggests that once you’re done pitching to your customer, and they’ve given you the money… the sale is done.
You got paid, they got what they paid for.
But… this is where most people get it wrong.
Why?
Because now the customer has to explain and justify the purchase. First and foremost to themselves. Then, perhaps, to their spouse. And if they’ve bought something super noticeable… they may also have to explain it to their kids, their friends… and neighbors.
As far as their own thinking goes, it’s usually some form of buyer's remorse.
The severity of their remorse depends on a lot of factors, but the main ones are resources invested, their involvement, how well the purchase aligns with their true goals, and what feelings they encounter post-purchase (guilt? regret?).
Now, this can be minimized during the sale.
However, as far as outside validation goes...
One of two things happen:
1- whoever they’re telling about the purchase will give them the validation they need. Congratulate them on making a good decision… and reinforce the buying decision. Or...
2- whoever they’re telling about the purchase shows serious disapproval for it… and hints that the customer did not get a good deal, or should not have bought the product in the first place.
If your customer goes through the first scenario, you’re good. They’re going to keep the product.
However, if they go through the second scenario… they’re very likely to come back asking for a refund.
Why?
Because the opinions of those around them pressured them to ask for their money back.
This is why I mentioned earlier that simply selling the product to the customer is half the work.
The other half is selling the product to everyone else they have to convince.
Now here’s the key:
Your customer is the one who has to sell the product to everyone around them. But… it’s up to you to give the customer the ammo they’ll use when they make their arguments.
This is why when you’re persuading the customer to buy… you don’t just load them with reasons to buy the product…
But also load them with reasons why buying the product is a good idea before… and after the sale!
For example…
You could give the customer a collection of testimonials of other people who got results from using the product.
Furthermore… you could give them a list of reasons why the product is as good as you claim, such as by giving them a spec sheet with all the numbers they’d have to quote when explaining the purchase to their friends (say, if your product is on the technical side).
Or maybe telling them the lengths you went to while researching to create the products.
Also…
If your product is a high ticket offer, you could actually arrange for the customer to get a phone call soon after the purchase, congratulating them for making the purchase, and validating the sale.
This alone has been known to drastically lower refunds.
And if you’re feeling extra creative…send the customer a t-shirt. Small gesture, but you’ll be shocked how effective this is.
Now, regardless of what you do, give your customer every bit of info possible to convince those around them the purchase was a good deal.
And you’ll see your refund rates drop.
To Your Success, Paul Hanson
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