I’m sure you’ve learned about taking away your customers risk by offering a money back guarantee. But, putting yourself on the line with a money back guarantee can be a little scary. I’m sure you’re thinking that people might take advantage of you. They might use the product and then return it.
Yes, it’s possible, but if you are offering a quality product you will come out ahead. Like stated before, most businesses will experience about a 5% return rate. A 0% return rate is probably not possible and may not be worth the additional effort.
Even if your product is fantastic, people will still misinterpret what you are selling, or just change their mind about it. And yes, some will try to cheat you, but this can be side-stepped to an extent by offering a limited time money back guarantee.
As a side note, if you don’t put a time limit on your guarantee, you’ll probably get quite a few refunds around the holidays. People need money to buy gifts after all. It happens.
In addition to setting a time limit on your money back guarantee, there are other ways to keep your return rate low. The most obvious is to offer a good product. If your product lives up to your customer’s expectations and they feel it is a good value, they aren’t going to return it. It’s just that simple.
Now, imagine if your product is more than what your customer was expecting. You will really minimize your returns. Give away a bonus that you don’t even advertise and that’s it, your customers will be completely sold!
Like mentioned before, set a time limit on your refund. Between 30-days and 90-days is a standard, acceptable amount. The trick is to make sure to give your unadvertised bonuses during that time period. This is a great way to reduce the number of refunds you will experience.
Incredible customer service Another way to keep your customers happy is by simply checking up on them. Show them that you care. Most businesses rarely ever do anything like this, even though customers love it.
Drop them an email about a week or so after they purchased your product to make sure they received the package, or that they were able to sign up for your online course, or that they received the e-book.
Any of these suggestions will help put you over the top. Try them out on your next customer and see what happens!
Copyright © 2005 by L A Parmley. All rights reserved.
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