No marketer likes giving money back. But a solid, no-questions-asked refund policy is an essential selling tool, especially in our cynical times. It reduces buyer hesitation and increases sales. Master copywriter Bob Bly recently explained four things you should know about refunds.
- A refund request doesn’t mean your product is bad or the customer doesn’t like it. It’s more likely they just can’t use it. It’s not for them.
- Offering a refund doesn’t cost you money. It makes you money. The increased revenues and profits from a guarantee are much greater than any loss you suffer by issuing refunds.
- Longer guarantees are better than shorter guarantees. If you currently offer a 30-day guarantee, try a 60- or 90-day. The longer guarantee term invariably increases response rates and sales, Bly says, because it eliminates the concern many buyers have with a short guarantee.
- Generous guarantees sell better than miserly guarantees. The more unconditional the guarantee, the higher your response rates will be. Conditional guarantees (e.g., only if the product is returned “in saleable condition”) actually reduce orders.
Sure, a few unscrupulous people might take advantage of your refund policy. But it’s a mistake to assume that most of your customers are like that. I’ve found that people have a way of living up (or down) to your expectations of them. If you expect them to be crooked, they will. And vice versa.