So when customers finally start buying from you… heck YEAH it’s exciting!
You’re finally starting to realize your dream!
But then, the unthinkable happens. An email pops up in your Inbox and it’s a… refund request.
It's a frustrating situation and you can't help but wonder if there's a way to avoid it.
Well, the truth is that you can't eliminate refund requests completely. They're part of any normal business ops whether you like it or not.
But — and there’s a big but — there’s a lot you can do to reduce your refund rates significantly.
Here are our 5 top tips to start minimizing your refund rates today.
Ready? Let’s go.
1. Create a welcoming email autoresponder seriesA follow-up, post-purchase nurturing email campaign can be very effective in reducing refund rates, especially if you're selling info products.
When people buy reports, training materials, or ebooks, they need some reassurance that they've made a smart decision.
So you can send out 3 to 5 automated follow up emails that give your clients additional tips on how to use the product, and even tease them about what's coming.
Help build up the excitement and set clear expectations upfront, and you’ll naturally have less refund requests.
2. Offer a trial periodSometimes people purchase your products or join memberships simply because they're curious.
That’s where this tip comes in: you can experiment with creating a trial period with a low barrier to entry to help reduce the chance your customers will ask for a refund.
The cool thing about this is that you don't even need to come up with an additional trial product!
If you're selling software or a subscription to an online service, for example, you can offer a limited-time free or $0.99 trial period to get their foot in the door and get them excited about your products before they pay for them in full.
3. Delight customers with an extra giftSending a physical product? Why not include a welcome gift after they've made a purchase?
It’s rare that brands offer this and people will love you for it. It adds extra value to the purchase and the gesture makes the recipient much less likely to return your product.
The best part? The gift doesn't have to be something big and expensive like a full-sized product.
You can even send out little promotional items like bookmarks, refrigerator magnets, or pens and still make a big impact.
4. Don’t point fingers. Try to figure out what happenedOnce your customer has requested a refund, try to find out what made them want the refund or to return the product.
It could even be something as simple as a flaw in the product that you haven't yet spotted.
Try to empathize with your customers and ask them why they’re unhappy with the product is a great way to gather insights to improve your business.
Maybe you need to adjust the prices? Maybe it’s missing a key feature they assumed it had?
The more you ask and the more you listen, the more you’ll understand what you can do to your product and your customer service to help reduce refund rates even further.
5. Offer an exchange where possibleOffering to exchange a product for a similar one, or different one of similar value, is a great way to hold onto your customer and lower your refund rates.
You’ll come across as helpful, not pushy, and even if the customer decides to proceed with their refund request, it still means they’ll be left with a favorable impression of your business.
And will be more likely to buy again from you in the future should a suitable product come out. Or at least, recommend you to friends and family who are a good fit for your product.
Wrapping it upThe bottom line is this: every refund request is a chance to learn and build stronger relationships with your clients. Use the tips from this article and start communicating with your customers after they've purchased to keep them engaged with your product.
In the case of a return, offer to exchange the unwanted item and find out what they didn’t like about it. Do all that, and you can probably reduce your refund rates by more than half.
What have you tried to reduce your refund rates? Share your tips and tricks in the comments.