Secrets to Success
Secrets to Success
How to slash client refunds
to the boneDo you know what single factor is responsible for virtually every refund request and nearly every piece of returned merchandise? Buyer's remorse.
Buyer's remorse is emotionally rooted, so conventional business practices will not do. You need a high-powered, emotion-based solution.
When does buyer's remorse take place? The minute money has transferred hands. Fear enters the heart of your client; wheels start spinning. Warning sirens sound, and they wonder if they made the right decision. People do not want to be wrong, especially if it affects their finances.
Buyers remorse is very common and it occurs because most people have been burned before. It's natural for them to have thoughts of skepticism and concern. Plus, it's human nature to look for something negative in a situation. They are almost waiting for something to go wrong.
What's worse is when they get home, friends and family may question their purchase. If your clients already feel as if they can't accurately justify their purchase to themselves, how can they possibly defend their purchase to their acquaintances or business associates?
Studies have consistently shown that 90 percent of what we worry about never comes to pass. Never. Yet, people still worry.
So whose job is it to put your client's fears and concerns to rest? If you want to slash returns and refunds to the bone, it's your job. After all, why should they worry when you know beyond a doubt that you're going to take care of them -- no matter what.
One of the best ways to put your client's concerns to rest is to provide an iron-clad guarantee that clearly states what your product or service will deliver. This simple, yet unbelievably powerful gesture stops potential doubt in the minds of your clients dead in its tracks. They are able to tell themselves, "Hey, if something does go wrong, I don't need to fret, because all I need to do is come back, and they'll replace it for free."
The other thought that goes through their mind, and often seals the deal more easily than you can imagine is, "Well, if they're going to provide a lifetime guarantee, than they must be pretty confident that this is an excellent product! I'm going to trust this company with my hard earned money, because they stand behind their product or service."
By explaining the specific benefits they are going to gain with your product or service, you're starting to arm your clients with the information they need to justify their purchase to themselves and defend it, if need be, to their family, friends or business associates.
Another brilliant way to reassure your clients, and honor them for choosing your business, is by instituting a thoughtfully created follow up plan to keep your company name associated with positive thoughts in the minds and hearts of your clients.
One company that understands this concept fully is BMW and its Mini subsidiary.
Have you seen its newest car? A friend bought a Mini recently, and raved about the customer follow up he received. Even before he received the car, BMW/Mini kept him up to date with regular updates on his car as it went through the production process. Since he's taken delivery on his car, he's received more follow up letters and useful gifts than from any other company he's ever dealt with.
These aren't necessarily big, luxurious gifts. They are more like small tokens of appreciation to share with your friends and family who like your new toy. Mugs, post cards, notepads and other small gifts always come with a "Thank You for being our valued customer" letter.
Think about it. Who doesn't enjoy receiving surprise gifts in the mail? Not too many people, I'm sure you'll agree.
Coaches corner
What type of system do you have in place that prevents buyer's remorse in your clients or customers? If the majority of people experience buyer's remorse, then why don't more business owners have some type of plan to address this for their own client base?If you take the time to make this a priority in your business, I can assure you, the positive impact on your marketing, public image and bottom line will be nothing short of incredible.
John-Paul Micek is a small business strategist
and chief operating officer at RPM Success Group.
Reach him at JPM@RPMsuccess.com
or toll-free at (888) 334-8151.