How to give MORE refunds and love doing it

sales

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.

2 thoughts on “How to give MORE refunds and love doing it”

  1. Quick story:
    We frequent the Good Egg near our office at least once a week, and probably one out of 4 or 5 visits, the kitchen messes something up. “How is your meal so far?” is met with “I asked for no onions, but look here!” or etc. Every single time, we are quickly told, “We’ll take that off your bill.” One time recently the kitchen messed up so badly, the manager not only comped both our meals, but gave us 2 free meals for next time.

    Last week, it happened again. So we called the manager over and said, “We love this place, and we love how willing you guys are to make things right. But as regular customers, we just want you to know that the kitchen messes up a LOT, and that with all the meals you have to comp, they are costing you a ton of money.”

    And here’s what the manager replied: “We appreciate your telling us. But just so you know, the kitchen doesn’t screw up any more than any other kitchen. We just consider comping your meal part of our marketing budget. We do NO OTHER marketing or advertising – just word of mouth. So the fact that you keep coming back because you know we will make it right – and that you tell others – that’s way more cost effective than an ad could ever be.”

    Which is to say YES to all you wrote above. GREAT advice, Mark!
    HG

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