Every business hates the word “refund.”

That one word alone can erase all of the hard work that went into the sales process. The money you spent on web design, copy writing, advertising (and much more) all went down the drain because the customer didn’t get what he was looking for.

So the question is: How are you supposed to handle a customer request for a refund?

Those of you who have read any of my articles know my mantra: GIVE THEM WHAT THEY WANT.

But does it apply here? Theoretically, if by giving a customer what they want you are in fact taking money out of YOUR OWN POCKET, then doesn’t that defeat the purpose of giving the customer what they want?

Short answer, no.

The slightly longer answer requires a small amount of explanation. First of all, when a customer requests a refund, YOUR IMMEDIATE ANSWER IS OKAY SIR, NO PROBLEM.

The prospect’s main fear is that you will keep his money and he’ll be stuck with an unsatisfactory product or service. If you relinquish his fear, he’ll be grateful to you.

After you’ve done that, find out what the problem is. Oftentimes, there is a solution which will make both you and the prospect happy. Try and find that solution.

One effective method for doing this is to offer to refund them partially while letting them keep what they purchased. This is a symbolic gesture on your part, designed to show the customer that you are willing to refund the money.

And that’s not all!

To complement the partial refund, offer an upgrade in the product or service offered. Throw in some extras or bonuses.

In the event that the prospect rejects the deal and MUST have a refund, then give it to them WITHOUT arguing or defending yourself!

You know the saying, “Win the argument, lose the sale.” Or in this case, customer. By giving them their refund, you may lose money on the sale.

However, if you handle it with the ATTITUDE that you are trying to help the customer get what they want, you will ENDEAR yourself to them.

While they may not have gotten what they wanted this time around, if you end the transaction in a respectful, helpful and civilized manner, who do you think they’ll turn to when they want to order again?