How to Refund a Customer
The primary goal of operating a for-profit business is to make money. Refunding a customer for a product purchase or a service seems counter-productive and merely a cost of doing business. What many otherwise shrewd business owners fail to realize is that issuing a customer a refund is a tremendous time to build customer satisfaction and create lifetime customers. With a few short practices, you can turn this seemingly painful event into a positive one for your bottom line.
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Instructions
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Greet the customer with a smile and a polite salutation. She has entered your store with the assumption that at best, you will be indifferent to her return and at worst, you will reject her return. If you greet her in a loving way, her attitude is sure to improve.
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Listen carefully to the customer's concern. Allow him to vent any frustration about the purchase, if necessary. Use empathetic phrases such as, "I can see why you feel that way" or "I certainly understand your concern."
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Verify that the customer meets the clearly posted return policy. Have a contingency plan in mind if the customer has violated the terms of the policy. Provide the customer with positive options regardless of policy.
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Restate your customer's concern to be certain you understand the problem and that she is best served with a refund. Avoid arguing if it is clear that she will not be satisfied without a refund.
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Process the refund transaction. Refund the cash or credit as per your policy. If the customer originally paid with a check and the bank states that the check has not cleared, offer to mail the customer a check once the funds are available.
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Document the reason for the return for loss prevention purposes. Document the customer's name and address. Clearly label the merchandise.
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Thank the customer sincerely using his name. Remind him that you appreciate his business and avoid making him feel bad about the refund.
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Mail your refund customer a thank you card stating your appreciation for her business. Include an opportunity to state any dissatisfaction with the return process and restate that you appreciate her continued loyalty.
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Tips & Warnings
Be sincere. Do not fake sincerity. Without your customer, you will not have a job.
Be confident while maintaining empathy.
Take ownership of the problem as if you manufactured the product.
Avoid using the third person in regards to a policy, saying "The policy offers a 30-day return period." She is discussing her problem with a person, not a policy.
Document frequent returns by the same customer, especially if without a receipt.
References
Resources
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