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 requests for a refund just days after you’ve made a sale.
With the policies of major payment systems like PayPal primarily favoring the Customer, the refund epidemic for digital products is now in full swing and shows no signs of abating anytime soon.
You can choose to complain about it, or throw your hands in the air, give up and go find gainful employment or you can seek solutions to protect YOUR OWN business in this toxic situation.
Here are 7 simple and inexpensive strategies you can implement to reduce your digital product overpayment. Many of them even apply to traditional product sales.
1. PROVIDE QUALITY PRODUCTS THAT DELIVER THEIR PROMISE. This may seem obvious, but most vendors don’t understand that the quality of their products is the first and best line of defense against customer refunds. Basically, with a few exceptions, most refunds are due to customer dissatisfaction. If the customer is satisfied, there will be no reason for them to request a refund. Offering great products that are truly worth their time and hard-earned money would take away from their minds any possibility of considering a chargeback.
2. PROVIDE AN EXCELLENT CUSTOMER SUPPORT SYSTEM. Many online entrepreneurs believe that customer support is unnecessary for an online business. This is a false notion. In contrast, a customer support system would increase the value of your product and drastically lower your payback rate. Knowing that your problems with your product and your 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 people often choose the rebate option. You open the product and you have all these videos, 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 consume the material more easily. Once they have a quick start guide that can help them understand the chaos of their overwhelming product, most will calm down and forget about asking for refunds.
4. HAVE A WELCOME LETTER SENT TO YOU IMMEDIATELY AFTER PURCHASE- The sale should not be the end of the sale of the product to the customer. Many customers go through a period of buyer regret. You 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 when purchasing your product AND get them excited to dig deeper and use the product.
Welcome letters can also give you additional information and resources, or they can act as your ‘Quick Start Guide’ and give you instructions on how to get started.
Your welcome letter may also include a small gift, or just a little extra bonus or perhaps an additional unannounced report. Whatever it is, it only increases the value of the product and helps your customers overcome the remorse of their initial buyers.
5. SET UP A WELCOME AUTOMATIC RESPONSE SERIES. Just like most vendors have an autoresponder series of emails to turn the potential customer into a buyer, it’s equally important to create an autoresponder series to help your customers get started on 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 to dive in and get started (remember, honest people who successfully review your product are much less likely to return it)
• Ask them for a testimonial or encourage them to refer to 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 accomplishes a couple of things: Your ideal customers feel cared for, and it gives you another opportunity to reach out and connect with them again. This is a great way to further build your relationship with your ideal clients. People hardly ever leave a Salesperson they have a relationship with for no good reason.
7. USE THE VIDEO TO DEMONSTRATE THE PRODUCTS – To reduce the frustration that often leads to refunds, it’s a great idea to have DEMONSTRATION 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 your product.
No employer would want to receive a refund request. It is both disappointing and downright demoralizing. But keep your spirits up. Refunds are part of the game. They are something we must live with. And fortunately, they are something we can control.