Writing and Promoting the Best Return and Refund Policy Your Customers Will Appreciate
Knowing how to write and promote a return policy that your customers love is an important component of a business. This is because such a return policy helps to give your business credibility which in turn allows your customers to trust your brand. In this article, we shall be examining the basics of writing and promoting a good return policy. We shall also be examining what makes a return policy stand out from many other return policies that exist.
Statistics of the Returns Economy
Return policies have a lot of effects on stores and businesses. While they enhance your credibility you have to ensure it doesn’t result in a loss. Statistically, in the previous year, about 10 – 15% of all purchases were returned. This amounts to a lot of money that was lost by many of the stores providing such a return policy.
These increasing return rates are higher for online purchases and it puts online businesses at more risk. Therefore, while return policies enhance customer satisfaction, they can be harmful to your business if utmost care is not exercised when drafting these policies.
It is also important to take cognizance of the rising rates of returns fraud and abuse, as about 6.5% of returns are recorded to be fraudulent. This is often done by customers faking receipts of payment or just buying a product to use it once and return it.
Why Your Business Needs a Good Return and Refund Policy
Many times when the negative effects of return policies are considered, many businesses tend to overlook writing one. While this might be tempting to do, it is important to note the benefits of returns policy far outweigh the disadvantages. Here are some of the reasons why you need to draft your return policy.
It Enhances Trust between Customer and Retailer
Customers always want to establish trust before engaging in transactions with sellers especially with regards to online purchases. Great return policy can help in building that trust which promotes loyalty and creates a thriving business atmosphere between buyers and sellers.
It Encourages Customer Commitment
With a good return policy, sellers can win the commitment of their customers. This is easy when the customers know that they can return a product that doesn’t meet their satisfaction requirements as is contained in the policy.
It improves customer experience
Your customers are the reason why you are still in business. So, it is your duty at all times to create the best customer experience for them. A comprehensive return policy is one of the best ways to create such an experience for customers.
Writing a Good Return Policy
Knowing what the benefits of a good return policy are is of no use if you do not know how to write one. When you know how to write a great return policy, you will know how to avoid making losses while winning over the trust and confidence of your customers. How well a business can write its returns policy, is the differentiating factor between that business and other businesses of its kind.
There are several best practices to be followed in writing a great returns policy, but let us examine five of these practices.
Ensure the Policy Is Comprehensive In Details
When creating a return policy for your business, it is important that such policy is comprehensive in its details. No information should be left out. It should contain what your business does, where it is located and how it can be contacted. This assures customers that such a policy is as reliable as your business. Leaving out some information when creating a return policy leaves your customers in doubt as to the certainty or otherwise of such policy.
Make Sure It Is Unique To Your Store/Business
One mistake many online businesses make when creating returns policy is copying and pasting. Avoid pasting the policies of other businesses especially when you do not understand it. Create a returns policy that is unique to your business and takes into consideration your business peculiarity. To give it more credibility, you can include reviews of your customers in your return policy.
Avoid Lexical Ambiguity (you see?)
When drafting a great returns policy, it is best that it is directed towards a target audience. To do this, you have to make use of terms that are peculiar to that target audience. However, you should make use of plain English. Avoid using words that will always send your customers to the dictionary, best believe that they won’t do that. Keep the return policy simple and easy to understand by all your customers. Of what use is a return policy when the people it is meant for cannot understand it?
Make the Return Process Easy
Do not give your customers a return policy on one hand, and take it from them with the other hand. Don’t play your customers by offering ambiguous procedures. No matter how good the return policy is, it is useless if the process involved is difficult. The policy should be comprehensive enough to include in clear terms the process to be followed by customers to make their returns. This makes your business a lot more accessible to customers and gives you an edge over other competitors.
Provide For Some Qualifications
Remember that as much as you are trying to build credibility and improve customer experience, you are also trying to avoid losses. Hence, there should be certain well-defined qualifications in the return policy for it to be opened to customers. This would go a long way in reducing return frauds and also in preventing your business from recording losses.
Helpful Tips in Creating Your Return and Refund Policy
Your return policy should generally increase sales and customer loyalty. This is done by building customer trust and keeping them customers for life. Here are a few helpful tips that can help you create a unique return and refund policy:
Know the purpose of your return and refund policy
Keep it simple and make it easy to locate
Plan ahead for these returns by setting expectations
Avoid placing unnecessary limitations on return and exchange time
Help customers by coming up with alternatives to refund.
In conclusion, it is necessary for your business to constantly review its return and refund policy and ensure that it is updated from time to time. Your policy should take into consideration changes that go on in the marketplace.