Last time, we discussed steps you could take to reduce the number of refunds or “lost” sales you have.
The idea is that every refund or lost sale costs you money, but if you think about this in the big picture, it’s entirely possible that you want to give MORE refunds.
And of course, I have a story about that, because I used to be pretty proud of the fact that I could count annual refunds on one hand.
A conversation with Dan Kennedy changed all that. He suggested that if we had so few refunds that it was the subject of bragging rights, we weren’t marketing or selling hard enough. Otherwise, we should have more refunds – and the payoff for that would be far greater sales.
He was right.
We didn’t have to get pushy and do the hard sell thing, we simply had to step beyond a strategy of selecting just the right people to attract to our business and turning a crazy high percentage of them into customers.
When we widened our qualifying process just a little – not a lot – it was transformational. We adjusted until we found the sweet spot – and it paid off.
Yes, we definitely had more refunds, maybe two or three times as many – but that was still only 10-15 per year. It also resulted in substantially more sales, so it’s worth a try. Just don’t use this strategy as “permission” to use every living being as your almost-perfect prospect.
Remember Jeffrey Gitomer’s “People hate to be sold but they love to buy.” There’s a lot of meaning in that which goes way beyond turning off the hard sell.