Refund a customer or not is a marketing choice. Are you ready to do it? But how to do it?
Refunding is not always a funny thing to do. I mean, it’s never funny to give the money back. So you could have the idea to maybe never refund.
Well, let me explain you why you should always do.
Refund guarantee removes the barrier of a purchase
Of course if I know that you’re willing to refund me if I’m not totally happy with your product, I’m more open to buy it to test it.
You have to know that the human brain do not love the risk, the refund possibility removes the risk to lose money. Also the brain does not want to enter in a self contradiction, so when someone buys your product because s·he needs it, it can be difficult to fake a refund request just to get the money back.
Don’t worry about ebook theft, it will happen but a very low percentage of people will do that, I promise.
Refund guarantee can help you to build trust
I didn’t say that offering a refund will bring trust instantly, but it will help to build one. Specially on Internet where people are suspicious at first, your refund policy is an indication to people you’re not just after their money but more on providing them a value with your product.
This trust can be broken if you don’t do it correctly like asking questions to decide if you refund or not. This is the worst idea ever to ask questions or toss a coin on the refund possibility, the trust will go through a rollercoaster and that’s not good for you.
Imagine, you buy a product because you read “We refund if not satisfied” then, you’re not so you ask for a refund and now you’re trapped in a questions maze to decide if you’re eligible to it, just horrible.
Now imagine the opposite, an angry customer email your support to talk about his·her issues that you can’t resolve for any reason, and you propose him·her a refund with no more questions. I guarantee that this customer won’t be angry, and ever more, s·he can return later to buy it again, or also won’t talk badly about you since you were kind. Remember the brain and contradiction thing? S·he was angry, you offered him·her a refund, so s·he’s not angry anymore, who can s·he talk badly about you now! Just can’t.
Refund guarantees differentiate you from your competitors
Not everyone will read this post, not everyone will agree with this idea, not everyone is offering a refund or an easy/real/total refund like you are/will, not everyone is promoting this as a feature or bonus. you can play with that to get more customers.
It can be a plus for your future customer to bear with you first if you’re already offering this refund possibility.
Refund guarantees force you to build a better product
Because people will ask for a refund only if they’re not satisfied, the more perfect is your product, the less refund you’ll have to give.
Don’t be afraid to get too many refund requests, just be afraid to not offer the best product/service.
When you do not offer a refund, you’re already saying “hey, even if my product is shit, I will keep your money right? Ok, now buy…”
Why refund guarantees are worth it
Summing up, why offering a money back guarantee of your products? Because:
- they don’t cost you anything more, no extra fee ;
- they do lead to higher sales for sure ;
- they do help you build trust with customers ;
- it’s the best business and ethical way to be actually ;
- they keep you accountable to deliver value to those who buy them.
Do not let people refund themselves by just clicking a button in they account page, worst idea ever. Remember the brain again? If they know they won’t have to talk to another human (brain?), the contradiction barrier disappear and then you’ll lose money.
Also if you’re using paypal as a payment gateway, remember that customer can ask for a refund through a simple process 60 days after the purchase. Disputes are not always won by the customer, but remember that it exists.