Have you noticed an increase in refunds?

8 replies
Just curious, if you have noticed an increase in your refund rate?

Of course, refunds are a normal part of business, but it seems recently it's spiked, and the reasons are the most ridiculous ones. (I.e., everything works fine, just it seems there are more people trying to get something for nothing... and the refunds aren't like immediate refunds, they are 2... 3... 4... months prior... it's almost as if someone is saying 'hmm... rent is due... what can I get a refund for?' (especially as unfortunately some of the digital providers seem to be adopting a lets refund anything for any reason attitude...)
are you experiecing the same thing at all?
#increase #noticed #refunds
  • Profile picture of the author dvduval
    Not for me. What I have found is by talking to people, I can identify what went wrong, and in a large majority of cases I can make them happy again. Sometimes it can be something small that really bothered them, but when they see that we are a company of solutions that can help them make money, they start to realize that we care.

    I did refund a 14 year old kid the other day though. Even then, I think he may be a returning customer, but he probably didn't have much allowance money left.
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    • Originally Posted by dvduval View Post

      Not for me. What I have found is by talking to people, I can identify what went wrong, and in a large majority of cases I can make them happy again. Sometimes it can be something small that really bothered them, but when they see that we are a company of solutions that can help them make money, they start to realize that we care.

      I did refund a 14 year old kid the other day though. Even then, I think he may be a returning customer, but he probably didn't have much allowance money left.
      Hmm... I talk to people too... but it seems some of the refunds are more like the customer is looking for an excuse to get a refund (i.e., software related), as opposed to something genuinely not working (which of course would be fixed asap)... I just mean the general rate overall...
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  • Profile picture of the author Igor Kheifets
    Well, recently there has been a growing tendency
    for the forced continuity trials as well as "try it risk
    free for 5 days and pay me later" kind of marketing.

    Often, after using the product for the trial period-a person
    either understands that it's not what he was looking for or
    it's not what the sales page promised.

    Either way, the freebie seekers count did not increase,
    the way we do marketing did. Refunds are just as high as they
    have always been.

    Try giving away a super cool freebie or unadvertised bonuses
    to over-deliver so they feel guilty for asking for a refund

    Igor
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  • Profile picture of the author Amy Carczak
    [QUOTE=InternetSuccess001;2182039] (especially as unfortunately some of the digital providers seem to be adopting a lets refund anything for any reason attitude...) QUOTE]

    This is why you should turn your "digital product"
    into a "phyiscal product". Use a fulfillment
    house to produce and ship for you and your refund
    rate will drop like a rock.
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  • Profile picture of the author Ilya Feynberg
    I've actually seen a drop in my refund rate. But to be honest, I don't promote any products or service that are known to be crap and people who buy from me know what they're buying before they buy. My refund rates all together (through clickbank) stand at about 2.5% for a rather hefty amount of sales.
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    • Originally Posted by Ilya Feynberg View Post

      I've actually seen a drop in my refund rate. But to be honest, I don't promote any products or service that are known to be crap and people who buy from me know what they're buying before they buy. My refund rates all together (through clickbank) stand at about 2.5% for a rather hefty amount of sales.
      Actually, quite possibly it's because it's a different industry. (I deal with a lot of software -- so specifically -- software -- I have seen the refund rates increase a little bit. Perhaps it is different with information products)
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  • Profile picture of the author Shaun Lee
    Nope.

    Refunds are rare if you promote the right offer to the right audience.

    -Shaun
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  • Profile picture of the author David Louis Monk
    I admit to having asked for a few refunds as it was not until I got the product that I found out it was the same product ordered before via another link or the information was not much different to what I had already bought in another program.

    I have also been bitten by buying a product and then found I was being billed monthly for a membership. I have since learned this is a reason to promote membership sites in that you can earn repeat sales from people who forget they are paying this out on their credit card and who do not check their statements closely every month.

    The other marketing ploy (trick) now is to get you to subscribe to a webinar for £1 or $1 and automatically be subscribed to a membership for which you get the first month free and of course you then forget you have been subscribed and you are billed on your credit card.

    I had to unsubscribe recently to a membership site as a result of paying for the attendance to a webinar only to be emailed again by the same marketer to pay for another webinar and again I would be subscribed to his membership site.

    As much as I would like to pay another £1 to join a worthy webinar I have declined, as I know I will be having to unsubscribe again.

    If I did go through this process again, should I feel guilty if the same marketer wants to make me the same offer rather than exclude me from his mailing list when making these offers?
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    David

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