The term “refund” might be considered taboo to most business owners, especially since it requires them to give back money that they have received from a sale and already put into the revenue stream. This is one of the main reasons why there are so many eCommerce businesses and brands that don’t offer refunds or have an abundance of fine print and attached strings that prevent their customers from ever qualifying for this provision. However, there are several ways that you can use efficient and open refund policies and procedures to actually increase your conversion rate and bring in more sales instead of less.
Create a Hassle-Free Shopping Experience
Nobody ever wants a sale to go sour or a customer to be so unhappy with their purchase that there’s no fixing it. Unfortunately a lot of business owners seem to take it very personally, but a refund policy that’s open and straightforward gives you a solid foundation for handling what can sometimes be a highly irate person. There are customers who have been so badly burned by online businesses that they will in fact not transact business with a site that doesn’t offer refunds or have a refund policy available to view. One of the best ways to make sure that your refund policy is effective at increasing your conversion rate and overall number of sales is to make sure that it is simple to understand and easy for the average consumer to use. When using a refund policy generator, check to make sure that you don’t over-complicate the actual policies and procedures that will need to be understood and accepted by your consumers along the way.
Shoppers will actually be more willing to trust in your company and finalize their purchases as long as they know that they can easily return these products without having to worry about unnecessary hassles and complications. As long as you provide high-quality products and services to satisfy your customers, you won’t need to worry about this provision backfiring on you, according to Time Magazine.
Offer Promotional Codes for Future Purchases
If a customer decides to go through with a refund request, make sure that you provide them with a promotional code or online coupon that can be used on a future purchase. The target objective is to win back their business as soon as possible, bringing them right back around full circle to becoming paying customers. Make sure that your promotional offer is sufficient enough to capture their attention but feasible enough to not cause you to go bankrupt by doing so. You may even want to encourage those customers to share their promotional codes with their friends and family members as well, in order to draw an even bigger crowd. Another method is to offer a points or bonus offer for unique referrals originated by that customer that result in sales.
Keep in mind that the average redemption rate for online coupons is well over 260 percent, primarily because of online sharing. Making the code unique to the customer can provide you with a clear way to track usage among their social circle, and gauge their influence. When using personalized refund policy generator, however, make sure that you don’t discuss this provision within the contents of your policy. This needs to be served as an unexpected surprise to your customers after the refund has been processed. That way, your customers won’t see it coming and will appreciate it even more when it does.
Invite and Accept Honest Feedback
Another great step to take in order to take full advantage of your refund policies for conversion purposes is to encourage your customers to leave honest feedback about their purchases. Why do they want to return these products in the first place? You may start to notice a consumer trend emerging, especially if large quantities of the same products are being returned. Perhaps the sales price was not as competitive as you thought, or the consumer was able to find a better deal elsewhere. Harder to manage are quality control problems, but putting a policy in place to quality check all your items in the receiving stage can help to avoid irate customers and refund hassles in the first place.
Finding out this information will help you to go back to the drawing board and make the necessary changes to prevent more returns and refunds from occurring in the future. If the need to do so arises, you can also take the time to adjust and modify your policies through your refund policy generator as well. Clearly, then, offering refunds and returns doesn’t have to be as painful as you might think but can actually become an effective tool for long-term growth and success, as well as adding to your reputation in the online community.