What it is and how to create a Refund Policy! – WAU
If you want your company to be successful, you should definitely bet on consumer attraction and loyalty techniques. A good example is to invest in social networks and Instagram for business, an excellent novelty for companies. Conquering customers with Content Marketing also brings many results, and having a refund policy, oddly enough, is another method […]
If you want your company to be successful, you should definitely bet on consumer attraction and loyalty techniques.
A good example is to invest in social networks and Instagram for business, an excellent novelty for companies.
Win customers with Content Marketing also brings many results, and having a refund policy, incredible as it may seem, is another extremely effective method for win and retain customers!
However, before deciding how the refund policy you will adopt will be, it is worth knowing that it is not good to copy another company’s, But to evaluate very well which one would be the best for yours.
Thinking about facilitating this process, we will help you now to better understand and create your refund policy!
What is a refund policy?
A refund policy is nothing more than the customer’s money-back scheme, which your company will follow.
The Consumer Protection Code itself encourages its creation, since reimbursement is mandatory in certain cases provided for by law.
Since it is not possible to escape the possibilities of reimbursement, it is best that your own company establishes and makes clear some rules when the money is returned.
But in addition to being an obligation, the refund policy is also a excellent marketing tool and customer loyalty.
Can’t you imagine how? Let’s show next!
Why should I have a refund policy?
Some reasons for having your refund policy are quite obvious, such as its mandatory nature, but other reasons may surprise you!
1. Why is it an obligation
First, because you, as an entrepreneur who wants to take your business seriously, must respect the Consumer Protection Code.
It is always worth remembering that having a refund policy is not even an option, but an option. company obligation, so that it acts in accordance with what is provided by law, and avoids problems in PROCON, in addition to legal proceedings.
2. Because it attracts customers and increases the number of purchases
If you want attract and retain customers, please be aware that having a refund policy can be an extremely efficient strategy for this purpose.
This is because when a customer knows that he can be reimbursed if regret of a purchase (one of the cases foreseen in the law for reimbursement, as long as a period of up to 7 days after the date of receipt is respected, for purchases made outside physical establishments), he will feel less afraid, and consequently much more encouraged to buy.
Thus, a refund policy still ends up becoming a good marketing strategy.
3. Why your customers will come back to buy with you
First, the return policy attracts the customer.
Then, having a positive experience with the first, second and third purchase – and perhaps, someday, the first refund – that same customer will become really loyal to the store, and will always consider it as the first option when buying.
In a competitive scenario, making your company the first option, and gaining that loyalty, will make a huge difference in your results.
How many times do we choose to go to a specific store, which sells exactly the same thing as another store right next door, and for the same price?
We do this simply because we received exceptional service, or any differential, as a confidence greater and positive previous experiences.
In addition, the customer knows that if he needs to return and be refunded if the purchase fails, he will be able to resolve this situation satisfactorily.
4. Because “word of mouth” will help your company a lot
There is no advertising more efficient than that which comes from the client himself, to other potential clients.
And having a refund policy will help you a lot in this.
It may seem that one thing has absolutely nothing to do with the other. So, to illustrate how this is true, I will tell you a situation that occurred to me:
I had been “dating” a product on a website for some time, and only considering making the purchase, taking days to decide to buy at once.
The only thing that was “blocking” me from completing the purchase, and leaving me afraid to buy in that store, was the fact that I had never tried to buy for her before, and I was afraid that what I ordered wouldn’t fit, wouldn’t look exactly like the photo, or wouldn’t look good (in this case, it was a shoe).
And what do we do in these moments of doubt?
Do you send an email to the company asking “hello, I would like to know if you are trustworthy and can I count on the possibility of a refund if everything goes wrong”? Do not.
Just like you would, and how any customer will do, what I did was ask friends if they had already bought in the store, and how was the experience.
And then a friend calmed my distressed little heart by saying “you can buy it easy, I bought a wrong number once but they solved it well”.
And that’s when I clicked on “confirm purchase”.
It will be like that with your customers too.
In fact, customers are often so positively surprised that spread out about the store, without anyone even having to ask anything.
Refund policy myths and truths
The information that is spread about refund policies is often very scarce or confusing, which ends up generating some myths.
Much of these myths unnecessarily torment business owners, who feel that having a refund policy may not be a good idea and can generate losses.
But this view is quite wrong. Check it out below and rest assured!
1. “Repayment must always be done twice”
Myth. The double refund only applies when there is a improper billing by the company.
This is the institute of undue repetition, which is provided for in art. 42, sole paragraph, of the Consumer Protection Code.
There is also an exception to double charging in this case, which is when there was a justifiable mistake on the part of the company.
2. “Cash refunds are only possible”
Myth. Good, it may even be true if your customer made the cash purchase. After all, the refund must be carried out in exactly the same way that the payment was made.
This means that if the customer paid for the purchase or service in boleto, the refund will be made by deposit in account or cash. But if the payment was by credit card, the refund will be made by the same means.
3. “The company must always make the refund”
Myth. Contrary to popular belief, you are not required to reimburse in any case, but in specific cases.
The cases where you are thanks they are all provided for in the Consumer Protection Code, and they are: right of repentance, product unfit for consumption, and defective product.
We will explain all of these cases in detail below:
1. Right of repentance.
The right to repent is provided for in art. 49, sole paragraph, of the Consumer Protection Code.
In this case, the consumer may, yes, come to withdraw from the contract, provided that within a within 7 days.
That period is counted from the moment the customer receives the product or service (or subscribes), whenever the contracting or supply of products and services is outside a commercial establishment.
When the consumer exercises his right of repentance, the amounts paid by him should be returned in that case.
2. Product unfit for consumption
Vices of quality or quantity, which make consumer products (durable or non-durable) are the responsibility of suppliers, according to art. 18 of the Consumer Protection Code.
The same goes for when there is an indication on the packaging, and this is not true.
The consumer may demand the replacement of the addicted parts, and if the addiction is not remedied in the maximum period of thirty days, the customer may require, at his choice:
a) that the product is replaced by another, in perfect conditions of use (under the terms of Article 18, § 1, I of the Consumer Protection Code);
b) that the amount paid is refunded immediately, updated, and without prejudice to any losses and damages (art. 18, §1, II of the Consumer Protection Code);
c) the proportional reduction of the price (art. 18, §1, III of the Consumer Protection Code)
In other words: in this case, the refund is, yes, mandatory.
3. Defective product
The same as in the previous topic applies here. In cases of defective product, the company cannot deny the refund requested by the customer.
Exceptions are provided for in art. 14, paragraph 3, items I and II of the Consumer Protection Code: if you can prove that the defect does not exist or that was exclusive fault of the consumer / third party.
How to set up a refund policy
First, it is worth mentioning that it is highly recommended to have the legal advice of specialists in this area to assist you, and to set up your refund policy without any headache.
Also, follow the steps below, which will help you a lot in the beginning of this process:
Observe what is provided by law
For starters, you can’t break the rules of the Consumer Protection Code.
If the Code provides that in certain cases reimbursement must be made, do not invent, and comply with the terms of the law, thus avoiding huge fines and lawsuits. Also watch out for deadlines that must be fulfilled.
In addition, according to art. 51, II of the CDC, the contractual clauses that take away the consumer reimbursement option, in the cases that are already provided for in the code, are null in its own right.
There is no use trying to “innovate” in this sense: its clauses will be worthless.
Once you have already considered the law, increase the possibilities if you want
You should definitely follow the Consumer Protection Code, but that doesn’t mean you should limit to him.
If you want (and can) offer other options to customers, be more flexible in your repayment options, adapt the circumstances provided, and thus attract more customers and their confidence to buy or hire your services, for example, you can adapt at will.
Make your own return policy without copying another company’s
Each company has its own possibilities and peculiarities, and only you know the possibilities of your.
“Copy and paste” the return policy of a different company can be extremely risky and can get you into trouble in the future.
Be clear with your customers
Keep in mind that your potential customers go read their refund policy, and so they are they who need to understand it.
Not all are lawyers or legal, so to start, avoid using very technical and legal terms, which can make it difficult for anyone to read.
Besides that, be very clear with consumers.
No “half-words” or hiding details of your policy, as they may feel cheated if they discover that your refund policy is not as they imagined.
And a customer who feels cheated has the same word of mouth potential as a happy customer.
In the same way that a satisfied customer will recommend, a dissatisfied one may to put away many potential customers from your company.
Be concerned with the clarity and proper use of words, even to avoid future lawsuits and all the problems that a communication failure can cause.
Report any changes
If you find that the policy chosen was not the best for your company and has been causing you losses, or that you are failing to comply with the terms you established earlier, it is possible to change your policy in the future.
However, always communicate to your consumers.
Leave the changes highlighted on the site for a while, send emails to the company’s customer list, and avoid at all costs negatively surprising your customers.
Remember: having a refund policy is not just a obligation of any company you do not want to have serious problems with PROCON, but mainly a tool that will give a lot of credibility and results to your company!
And now that you know how a refund policy is critical to loyalty customers, find out more about loyalty methods, and check out how to turn your customers into loyal consumers with Precision Marketing!
And then? Did the article help you? Tell us in the comments below! And if you have any other questions about the refund policy, just talk!
What did you think of this information? How about using the Guru PME Refund Policy generator?