7 Ways To Lower Sales Refunds: Inoculating Your Business Against the Customer Rebate Epidemic

Many digital marketers agree that digital product refunds have reached epidemic proportions. Most Marketers agree that refund requests within a few days of a sale are the most deflating thing.

Due to the fact that major payment systems like PayPal tend to favor the Customer, there is a huge refund epidemic for digital products.

You can either complain or ignore it. Or you can try to find solutions for your own business.

These are seven easy and affordable strategies that you can use to reduce refunds for your digital products. Many of these strategies can also be applied to traditional products.

1. PROMOTE QUALITY PRODUCTS AND DELIVER ON ITS PROMISE. It may sound obvious, but many vendors fail to realize that customer refunds can be prevented by ensuring the highest quality products. With a few exceptions to the rule, most refunds stem from customer dissatisfaction. Customer satisfaction is the only reason to ask for a refund. If they are satisfied with the products, it would be impossible for them to request a refund.

2. FIND A CUSTOMER SUPPORT SYSTEM THAT IS EXCEPTIONAL. Many online businessmen think that customer support is unnecessary when operating an online business. This is a false belief. Contrary to popular belief, customer support systems can increase the value of your product as well as reduce your chances of getting a refund. Most customers will be able to resolve their issues with your product or your company through an easy-to-use channel. This would discourage them from seeking refunds.

3. CONTACT US FOR A QUICK START GUIDE. Information products can be overwhelming. Overwhelmed people often opt for the refund option. The product opens up and there are many videos, audios, and transcripts. You don’t know where you should start. A Quick Start Guide (either audio- or written) can be helpful in giving people a starting point and can make it easier to consume the material. They will soon forget about asking for refunds once they have a quick guide to help them understand the overwhelming product.

4. DELIVER A WELCOME LEFT TO THEM RIGHT AFTER PAYMENT-The sale should not end with the customer buying the product. Many customers experience buyer’s regret. Sending a welcome letter, extra gift, or both to your customers will reassure them that you have made a good decision. You should send a Welcome letter to reassure your buyer that they have made the right choice by purchasing your product. Also, it should get them excited about using the product.

You can give them additional information or resources in your welcome letters. Or, it can double as your “Quick Start Guide” and provide them with instructions on how to get started.

A welcome letter may include a small gift, a bonus, or an unadvertised report. It doesn’t really matter what, it just adds to product value and helps clients overcome initial buyers’ remorse.

5. SET UP A WELCOME AUTO-RESPONDER SERIES.It is important to create an autoresponder series for your customers to help them get started with your product, just as most vendors use a series email series to convert prospects into buyers. These emails can be:

• Reassure them they made a good decision by purchasing 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 far less likely to return it)

• Ask them for a testimonial or encourage them to refer a friend

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• Upsell them to the next level

6. GIVE A SURPRISE BONUS A FEW DAYS AFTER PURCHASE -Send them an additional, unadvertised, bonus after they have made the purchase, perhaps around 3-5 days. This helps you to make sure your ideal clients feel cared for and also gives you the chance to connect with them again. This is a great way of strengthening your relationship with your ideal customers. A relationship with a Seller is a strong one. People rarely walk away from a Seller without good reasons.

7. PRODUCTS DEMONSTRATION VIDEO –It’s a good idea to make DEMO VIDEOS of how your product works. They will show you how to use different features and reduce frustrations that can lead to refunds. Demo videos can demonstrate features and ease-of-use, and help to convey the product in a way that is simple to use.

A request for a refund is not something a businessman wants to be sent. It can be both disappointing and demoralizing. Keep your spirits high. Refunds are an inevitable part of the game. We must accept them. They are not something that we can control, but they are something we can live with.

We are a team of professionals with each having two decades of experience in start-ups, sales, marketing, finance, HR, large scale project and profit centre management and running mature cross functional operations. At we are big believers that knowledge transfer is critical to our industry’s evolution. We love to share our experiences and learnings through our online resources.

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