Most businesses dread customer refunds, but the fact is that your customer is dissatisfied. To become a successful business, you cannot lose your customers dissatisfied. Therefore, it is vital to face the music. Your customer may have some reason to ask for a refund.
Identify what caused them to make this decision so you do not repeat that mistake down the line. Remember that one disgruntled customer is enough to spread negative words about your products and services that will deter your potential prospects.
When a customer requests a refund, you know two things clearly about them – they were interested in your product, and they spent the money on it. Companies often resist accepting refunds as it will surely have a bad impact on their profits but remember that your customers are returning your product and seeking a refund as it did not deliver what it should.
Moreover, it is not always about the satisfaction they get from your product. They may get a damaged parcel. For instance, they ordered a bottle of perfume from your eCommerce store, and when it was delivered to them, they found it damaged. They could ask to get exchanged or ask for a refund. Handling customer refunds are actually quite complicated, but this blog discusses some ways how you can deal with them efficiently and turn them into lifetime customers.
Establish a clear return and refund policy
Having a clear refund policy will set expectations before the sale is made. Your customer would already know the circumstances that allow for a return and refund. A good refund policy outlines the following elements:
- How many days do your customers have to return a product?
- Which method will you use to pay the money back to the customer – store credit, credit card or cash, or replacement?
- Which products are not eligible for a return?
- Are there any non-refundable fees like shipping costs, and who will bear the arrangement cost for collecting the product?
When you have already specified all terms and conditions, there will be almost fewer chances of confusion and argument.
Deal with your customer patiently
Do not assume that your customer will talk to you rationally. They will likely feel that they have been ripped off, and they will be ranting and raving. Do not take it on, and do not lose your cool. It is quite obvious that they will feel frustrated because their expectations have not been met.
Do not add fuel to the fire by answering back. Instead, you should try to ensure you understand the concerns of your customers and are completely ready to provide them with a solution. Ask your employees why they have decided to return a product. Asking this question will certainly go a long way.
When you convince them, you will certainly resolve their problems. Their frustration will let up. It is vital to understand the true scenario before offering the right solution. For instance, in case of delivery of damaged goods, you can reschedule the delivery of fresh produce to replace it instead of processing the request for a refund.
Offer a sincere apology
You should express a sincere apology to your customer after they have expressed their concern. A sincere apology can let up their frustration and put them in a better state of mind. They will likely accept the solution you offer to them for their concern. You may need to ask them a couple of questions.
Make sure you do not jump at them. First, apologize and then ask questions relevant to their concern. For instance, “We apologize for the inconvenience caused to you. We will certainly resolve your problem. We would like to ask you a couple of questions to clarify what happened. May I?” By being apologetic, you will be able to shift your customers’ minds to problem-solving.
Find out if you can fix it
Once you have got to know the full story, now you need to figure out what you can do. You need to figure out whether it needs replacement or get the product back and return them money. You may decide on giving a complementary service to make your customer happy.
You never know how a sophisticated and polite gesture can help your customer to stick to your business. Assure them that it will not happen again. Customers do not want to get caught in the mess of returning and requesting a refund every time. Make sure you do not repeat that mistake and make your customer believe that they will always get the best customer experience from you. Otherwise, they will leave you and run to your competitors.
Be honest
A product description is created so customers can understand what it has to offer them. All features and benefits should be disclosed so customers can decide if it is actually worth buying. However, sometimes you make extraordinary claims.
Avoid it because it will certainly ask for huge trouble. For instance, if you are an online lender and provide guaranteed loans for the unemployed in the UK, make sure you express an accurate interest rate. The same interest must be mentioned in the terms and conditions so a borrower does not object later and spread negative messages about your business.
Make refund quick
If you have decided to offer a refund to your customer, make sure you do it as soon as possible. Any delay in a refund will increase the frustration of customers. Make sure you use the most convenient way to return money to your customers.
To sum up
If your customer has requested for refund, you need to see if it meets the conditions. Make sure your customers know what products can be refunded and what is not covered under this policy.
Remember that you will have to keep your customers pleased and satisfied as this can increase the clientele, which means increased sales, and when the sales hike, you will have more cash inflow. So, you do not need to seek direct lenders’ loans in the UK all the time. Follow the aforementioned tips to ensure a smooth refund.
