Most digital marketers agree that digital product refund request rates have now reached epidemic proportions. For most marketers, there are few things as daunting as refund requests just days after a sale is made.
With the policies of major payment systems such as PayPal primarily favoring the Customer, the digital goods refund epidemic is now in full swing and shows no signs of abating any time soon.
You can choose to whine about it, or throw your hands in the air, give up and go find gainful employment, or you can look for solutions to protect YOUR OWN business in this toxic situation.
Here are 7 simple and inexpensive strategies you can implement to reduce excessive refunds on your digital product. Many of them even apply to the sales of traditional products.
1. PROVIDE QUALITY PRODUCTS THAT KEEP ON THEIR PROMISE. This may sound obvious, but most sellers don’t understand that the quality of their products is the first and best line of defense against customer refunds. In essence, with a few exceptions, most refunds stem from customer dissatisfaction. If the customer is satisfied, there is no reason for them to request a refund. Providing great products that are actually worth your money and hard earned money would remove any possibility of considering a chargeback from their minds.
2. PROVIDE AN EXCELLENT CUSTOMER SERVICE SYSTEM. Many online entrepreneurs believe that customer support is unnecessary for an online business. This is a false notion. Conversely, a customer support system would increase the value of your product and drastically reduce your refund rate. Knowing that their issues with your product and business can be addressed through an easily accessible channel would deter most genuine customers from resorting to refunds.
3. HAVE A QUICK START GUIDE –. Information products can be overwhelming and overwhelmed people often choose the refund option. You open the product and you have all these videos and audios and transcripts and you don’t know where to start. A quick start guide (either audio or written) can give people a place to start and can help them more easily consume the material. Once they have a quick start guide that can help them understand the chaos of their overwhelming product, most will settle down and forget about requesting refunds.
4. TO BE SENT A WELCOME LETTER IMMEDIATELY AFTER PURCHASE- The sale must not be for the purpose of selling the product to the customer. Many customers go through a period of buyer’s remorse. He should send a welcome letter or an additional gift (or both) to reassure them that they have made a great decision. A welcome letter should reassure the buyer that they have made a good decision to purchase your product AND get them excited about finding and using the product.
Welcome letters can also provide you with additional information and resources, or can serve as your ‘Quick Start Guide’ and provide instructions on how to get started.
Your welcome letter may also include a small gift, or just a small added bonus or perhaps an unannounced bonus report. Whatever it is, it only adds value to the product and helps your customers get over their initial buyers’ remorse.
5. SET UP A SERIES OF WELCOME AUTORESPONSES. Just like most vendors have a series of autoresponder emails to convert a prospect into a buyer, it’s equally important to also create a series of autoresponders to help your customers get started with your product. These emails can:
• Assure them that they made a good decision when buying your product.
• Give them some additional tips for using the product.
• Get them excited about diving in and getting started (remember, honest people who go through your product successfully are much less likely to return it!)
• Ask them for a testimonial or encourage them to refer a friend
• Sell them to the next level
6. GIVE A SURPRISE BONUS A FEW DAYS AFTER PURCHASE -Send them an additional unannounced bonus later, maybe 3-5 days after purchase. This does a couple of things: your ideal customers feel cared for, and it also gives you another chance to reach out and connect with them again. This is a good way to further build the relationship with your ideal customers. People rarely leave a Salesperson they have a relationship with without a good reason.
7. USE VIDEO TO DEMONSTRATE PRODUCTS – To reduce the frustration that often leads to refunds, it’s a great idea to have DEMO VIDEOS to explain how your product works and visually demonstrate how to use the different features of your product. These demo videos can be used to demonstrate features, ease of use, and can convey products in a way that makes it stupidly easy to use.
No employer would want to receive a request for a refund. It’s both disappointing and downright demoralizing. But keep your spirits up. Refunds are part of the game. They are something we must live with. And luckily, they are something we can control.