Money-Back Guarantees Are Not A Guaranteed Loss!

Posted by WY on August 5, 2009

Offering a money-back guarantee is a good way to increase sales, because this gives your potential customers the comfort of knowing they can just get their money back if they don’t like your product.

And the good news is less than 2% of your buyers are likely to go through the trouble of asking for a refund, even if they hate what you sold them!

Of this 2%, the sad truth is about half of refunders will ask for money back not out of a lack of satisfaction, but because they couldn’t afford your product in the first place.

But just because a customer asks for a refund, there’s NO reason you can’t make one last effort to retain the sale.

Always respond politely, and ask them if they would prefer to have another product from your line at no cost instead of getting their refund.

In my experience a solid 50% of potential refunds are prevented with this common sense technique; and most of the customers this does not work with are either from the “I hate everybody” crowd, or are that portion of the market who should not be shopping in the first place because they can’t afford to do so.