Simple way to reduce refunds

18 replies
I found that I could get a good reduction in the refund rate for my product/s by adding an auto-responder email on day two or three (you would have to determine exactly when is the best time) saying something along the lines of

"It is important to us that you are happy with your purchase. So if you are having any problems at all, or just need some advice to get started, get in touch with us via... helpdesk URL, whatever"
I think it is good to tackle potential buyer regret quite quickly after they purchase, since very often people are having simple problems that can be easily fixed, or just aren't sure where to start in applying your method, or whatever, and they could easily reach for the refund button at that point.

Yes, this COULD increase your support load a little, though not as much as you might think, it's more a kind of reassurance that the product owner is standing behind his product, and should put you up on the deal overall. And anyway, you DO support your product, don't you, and you are not one of those product owners who wants to sell as many as possible whilst providing as little support as possible?! No siree, none of that going on in IM..!

Perhaps I had better not get started on "big product launches where support dries up within a few weeks after the launch, or after the refund period has expired"... Hope that's a tip that can help someone improve profits.
#reduce #refunds #simple
  • Profile picture of the author JPaston
    Good idea, thanks for that.

    The more reassurance you can give the customer the better.

    I've seen some marketers build trust by giving an unannounced bonus in an email following up a purchase. I'm sure that also reduces refunds because of the goodwill engendered.
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    • Profile picture of the author markowe
      Originally Posted by JPaston View Post

      Good idea, thanks for that.

      The more reassurance you can give the customer the better.

      I've seen some marketers build trust by giving an unannounced bonus in an email following up a purchase. I'm sure that also reduces refunds because of the goodwill engendered.
      "Unannounced bonus", you say, hmmm, nice idea, hadn't quite done it like that, might be worth trying. Keeps interest up in the autoresponder sequence too
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  • Profile picture of the author JPaston
    Good idea, thanks for that.

    The more reassurance you can give the customer the better.

    I've seen some marketers build trust by giving an unannounced bonus in an email following up a purchase. I'm sure that also reduces refunds because of the goodwill engendered.
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    • Profile picture of the author mgsmith
      Originally Posted by JPaston View Post

      I've seen some marketers build trust by giving an unannounced bonus in an email following up a purchase. I'm sure that also reduces refunds because of the goodwill engendered.
      This is great. Not only will it reduce refunds but it will also gain you more customers.
      Signature

      Mike

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      • Profile picture of the author SunilTanna
        You definitely should email every customer after purchase to say thank you for your business, to tell them that you're a real person, and you will help if there are any issues.

        You should also ask them printout their receipt and purchase details (I put this right in the thankyou page including the receipt number). A common, and annoying reason for refunds and charge backs is some customers simply forget what they purchases, when, and from whom.

        I've written about this in more detail here on Miles Baker's site: Using Your ClickBank Thank You Page To Boost Profits

        See sections:

        Use Your Thank You Page To Reduce Refunds

        Email Every Customer After Their Purchase
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        ClickBank Vendor?
        - Protect Your Thank You Pages & Downloads
        - Give Your Affiliates Multiple Landing Pages (Video Demo)
        - Killer Graphics for Your Site
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  • Profile picture of the author arshia bhardwaj
    Provide quality products.
    Provide for an excellent customer support system.
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  • Profile picture of the author EllenMoore
    Originally Posted by markowe View Post

    I found that I could get a good reduction in the refund rate for my product/s by adding an auto-responder email on day two or three (you would have to determine exactly when is the best time) saying something along the lines of



    I think it is good to tackle potential buyer regret quite quickly after they purchase, since very often people are having simple problems that can be easily fixed, or just aren't sure where to start in applying your method, or whatever, and they could easily reach for the refund button at that point.

    Yes, this COULD increase your support load a little, though not as much as you might think, it's more a kind of reassurance that the product owner is standing behind his product, and should put you up on the deal overall. And anyway, you DO support your product, don't you, and you are not one of those product owners who wants to sell as many as possible whilst providing as little support as possible?! No siree, none of that going on in IM..!

    Perhaps I had better not get started on "big product launches where support dries up within a few weeks after the launch, or after the refund period has expired"... Hope that's a tip that can help someone improve profits.
    I like the idea, but the message should only be sent if someone will be there to solve problems when/if they appear. How many refund requests did you get before setting up the auto-responder?
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    • Profile picture of the author markowe
      Originally Posted by EllenMoore View Post

      I like the idea, but the message should only be sent if someone will be there to solve problems when/if they appear. How many refund requests did you get before setting up the auto-responder?
      Oh, absolutely, support must be in place. Unfortunately a lot of big launches are JUST set up to sell a hyped-up product in as many units as possible, support if there is any gets overwhelmed the first few days, then is often shaky to say the least, and usually by about the second month there are no more replies to your emails and you realise it was just another churn-and-burn. There are one or two BIG names round here that I will not be buying from again for that reason.

      About the number of refund requests, it is difficult to gauge, but lets say I got a bit worried with one product when I realised they were hitting 10%, yet most of the reasons given were related to the customer thinking the product "didn't do what they wanted it do", even though it probably DID, they just didn't ask. The rate is certainly below that now, maybe halved.

      Big Mike: yes, some of my customers get blown away by the amount of support they get from me and say things like "You actually care about your customers, not like the 'Guru's". On the other hand, the gurus are probably earning far more than me, but I get to sleep at night...
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  • Yes I agree with the OP.

    Many customers purchase a product, and then they have some initial issues installing or implementing the product, and they cannot be arsed to research further on the matter which leads to an instant refund.

    Adding a "Hey, is everything OK? Got any problem? Do you need assistance?" email to your post-sale autoresponder helps sorting those out.
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  • Profile picture of the author Venturetothetop
    What reduces your return rates even more is interesting stories of success from your other customers...

    It motivates the individual to re-look at your stuff seriously and makes then understand that the problem is not with the quality of the product but with their lack of understanding of how it works.

    Big corporations use this method all the time, so message 1 should be an example of success from one of your real customers, mail 2 can be asking them if they need help, but three four and five must show how certain elements of what you sell have helped others.
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  • Profile picture of the author BuyExpiredDomains
    Thansk for the tip. I feel like the more communication you can have with your users (without going overboard) the better. Sometimes just reaching out them can have a drastic change on their perception.
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  • Profile picture of the author Tanya E
    The very fact that you have after-sales support can reduce refunds because the customer knows that you can be contacted first before he requests a refund. Once he contacts you it is easy to find out his issue and address it so that he is satisfied with his purchase.
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  • Profile picture of the author Moneymaker2012
    Quality customer support and Unannounced bonuses to the customers is definitely a great idea, but it is important that the bonuses should be valuable for the customers.
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  • Profile picture of the author timpears
    This is an interesting idea, thanks OP.
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    Tim Pears

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  • Profile picture of the author jgant
    Great idea. Just added it to day 2 of post-purchase email sequence. If
    anything, buyers will appreciate it ... I know I would.
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  • Profile picture of the author Matt59000
    Good idea
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  • Profile picture of the author GuruGuna
    To keep the refund rate low, one should start off by providing the most VALUE in the product itself.

    Then like you said, a follow up email would will help even more. I don't believe that it will add work load. I love to engage the buyers and entertain them to buy other more value added services. Its all about the followups!
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  • Profile picture of the author nicelife
    I like to keep things simple.

    If I sell a product, I use it myself and it works for me, it makes it easy to stand behind the product and it keeps the refunds low.

    If mistakes are made I correct them asap.

    Always treat customers with respect, even though some can test the patience :-)
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