Posts Tagged ‘refunds’

This past week, we announced, through a blog post and emails to vendors, an update to the ClickBank refund policy and vendor fees.  As a result, there have been questions regarding consumers who may abuse the ClickBank refund policy that we would like to take a moment to address.

Protecting ClickBank client sales is a top priority, and cracking down on consumers who may abuse the ClickBank refund policy represents a significant portion of our recent efforts to reduce refunds and chargebacks. We have and will continue to actively monitor and block consumer purchases that abuse our ClickBank Return and Cancellation Policy. On a daily basis, we review consumer behavior for refund and chargeback history, block purchases from consumers who have a record of frequent refunds or chargebacks and blacklist consumers who we’ve identified as policy abusers. We do this to ensure that the refund and chargeback rates for ClickBank clients’ products accurately reflect the product and promotions, and are not the result of problem consumers. On the whole, “serial refunders” make up a small percentage of all refunds.

ClickBank clients who act as consumers by purchasing products from other ClickBank clients are also subject to this policy, in addition to the Client Contract. ClickBank clients who abuse the refund policy may be subject to corrective action in accordance with the Client Contract.

As part of our efforts to help clients lower refund and chargeback rates, and in addition to best practices outlined in our updated promotional guidelines (e.g., no blind offers) and other tips available on our blog, we have been trialing additional features through our beta program including:

• Exclusive Affiliate Whitelists — Vendors can utilize exclusive whitelists to select which affiliates are permitted to drive traffic to their site to eliminate problem affiliates.
• Affiliate Blacklisting – Vendors can request that specific abusive affiliate accounts be added to a blacklist, prohibiting the abusive account from driving traffic to their site.
• Partial Refunds – This will allow a vendor to determine the percentage of a refund to grant to a consumer, based on their business rules.
• Digital Rights Management for eBooks – New technology that will allow a vendor to revoke access to their digital product if the consumer requests a refund.

We anticipate these new features will help vendors to manage refund rates as well as improving the consumer experience. We will continue to communicate the availability of these features as they are released from beta.

We’re committed to supporting both our clients and consumers, and ensuring refunds and chargebacks are kept at reasonable low rates is the responsibility of clients, consumers and ClickBank. We are committed to working together to make sure this industry remains profitable and viable for a long time to come.

As part of our ongoing commitment to providing high quality products to consumers, ClickBank is adjusting certain fees relating to refund and chargeback rates for ClickBank vendors. These changes will affect a very small number of ClickBank vendors, and will not affect affiliates.

Starting October 17, 2011, vendor accounts with a refund rate over 15% and/or chargeback rate over 1% over the past 60 days may be subject to additional fees or penalties. Refunds and chargebacks negatively affect everyone, including customers, affiliates, vendors and ClickBank, so it is important that we all work together to keep refunds as low as possible.

For vendors over the 15% refund rate threshold, ClickBank may opt to retain our transaction processing fee on any subsequent refunds, rather than returning the processing fee to the vendor as we do now. Vendors with refund rates significantly higher than the 15% threshold may also be subject to additional processing fees on refunds and additional penalties including removal from the Marketplace or account termination. Vendors with chargeback rates over 1% may be subject to additional fees on subsequent chargebacks.

As stated earlier, this change will impact a very small number of ClickBank vendors, and will not affect affiliates.

To support vendors in lowering their refund rates, we are adding a clear indicator of the vendor’s current 60-day refund rate to the Account Home page so vendors can easily track their refund rate and take action if necessary.

As we begin to implement this new policy in the coming weeks, ClickBank will contact affected vendors individually before any additional fees are applied to their accounts, and will attempt to work with these vendors to lower their refund rates whenever possible.

We are committed to supporting our clients and end customers, and these changes are part of our commitment to keeping affiliate marketing profitable and sustainable for years to come.

Written by: Guest Author, Chris McNeeney

I’ve been selling on ClickBank for approximately 5 years, across a myriad of niches.

These are the best ways I’ve learned that vendors can lower refunds on ClickBank.

Work through this checklist and you are sure to slash the number of refunds and chargebacks you run into, hopefully with minimal effort.

Ask yourself, “How easy is it for my customer to get their order?”

Sounds simple but by far the most common reason I’ve come across for a customer refunding is that they cannot get access to their order. This is either because they never received an email containing their login info (either it went into the spam filter or perhaps your download delivery system failed), their browser crashed mid-order, or they did manage to access the download page but some technical issue stopped them from actually accessing the product. If you look at your refund reasons then you will very probably see that the vast majority of frustrated customers are frustrated not because they got the product and didn’t like it, but that they didn’t get the product, period. In a world of instant gratification you may find that not everyone takes action when they’ve digested your content – but the vast majority will at least try to download it. And if they can’t, they will refund. Sounds simple but this is definitely the first thing to look at. A customer who doesn’t get access to a product will almost always refund.

Approach your customers as if they are complete newbies

If you’re selling your own ebook on CB, then chances are you have a high degree of specialized knowledge about your field. In other words, you’re an expert. And when you’re an expert its tempting to think that the value you deliver is by giving people information which is advanced, brand new etc – information they can never find anywhere else. Indeed, your sales copy is probably positioned in line with this kind of thing.

But when it comes to the product side of things, being overly technical can do you more bad than good. I’ve found in almost every niche I’ve sold in that most customers (and often most of the best ones) are complete beginners – not intermediate or advanced users. So you’ll do better to teach them from the bottom up. I’ve found that refund reasons of “this is too complicated for me” outweigh refunds because “this isn’t advanced enough for me” by ratio of ten to one.

The conclusion? Treat your customer like they have absolutely no experience in the area. Start from the basics and explain everything in depth. Use simple images, diagrams and as many videos as you can. Write and talk like you would to a complete novice. Make everything idiot-proof as possible. By all means mix some more advanced stuff in there too (later on and ring-fenced from the beginner-focused stuff ideally). But if you approach your customers as if they are complete newbies you will actually lower refunds. And the more visual (video and step-by-step diagrams) you can explain everything, the better. Oh and one final point – if your product requires any technical plugins (Adobe Flash, Apple Quicktime etc, give them very prominent and clear links to download whatever they need).

Is your sales letter too “blind”?

One instant way to lower refunds is by making it much clearer to the customer what they will get and how it will be delivered. If you keep it “blind” and don’t tell them what the product is about, then you will very likely generate more sales, but you’ll “catch a lot of people in the net” who really shouldn’t be buying your product. Of course this is a trade-off between generating sales and minimizing refunds, but if you find your refund creeping up, try and make your sales letter more specific.

One way to still get the sale but not suffer the refund is by talking about the experience the customer will have once they’ve ordered your product. For example…
“Once you order, you’ll be instantly be redirected to our download page. Just enter your name and email, then you’ll be presented with our full and complete e-course. Since our method is firmly based around getting free SEO traffic, we’ll present you with a series of beginner’s videos to explain the basics. If you already know the ropes, you can skip past these and head straight to the core method itself – which is presented in a series of videos and to-the-point PDF ebooks.”

A simple paragraph like this will prepare the customer for what happens after their order – and will make it all less “blind” and lower refunds.

If all else fails, go physical

One very underused trick is to create a physical version of your product. If it’s software, put it on a CD or DVD. If its an ebook, make it printed. Offering your product in physical form can lower refunds by up to 30% – and that’s even if customers don’t need to return it to get a refund.

The reason is simple. When a customer buys a physical product, it instantly has more perceived value than one that’s purely digital. Customers love physically holding something in their hand, and they are more likely to consume your product if its physical as opposed to just sitting somewhere on their desktop. Remember also that when a customer fires up their computer, they have a million and one distractions. But if you get a physical product in their hands, you have their undivided attention. One additional bonus of this is that it means you have their physical address, allowing you to send newsletters or even presents (such as cookies) – with their permission of course. This builds your relationship with the customer, separates you from others in your niche (who are surely not doing this) and will definitely lower refunds.

Respond to customers instantly (even if it’s automated)

This is another simple trick I’ve picked up along the way. Very often, customers go into panic mode if they can’t get their download, or need to solve a fundamental problem right away. A typical scenario goes like this: they buy an ebook, and can’t get instant access as promised. They email support and hear nothing back. They panic and either refund or chargeback. A simple solution is to setup a detailed autoresponder that explains exactly how your support ticket works – with open times, and expected response times (aim for under 24 hours). So any customer email to support will get an automated, instant autoresponder email back.

This kind of thing will stop customers going into a panic and cut a few percentage points of your current refund levels. Likewise, try to give a prominent link to a customer FAQ with your top 10 most common support questions (and answers). This will give many customers an answer without them having to wait to hear from you, which in turn will lower your support volume and lower refunds.

Review your customer support tickets at least once per month

This is really the one thing that you should be doing more than anything else – you need to be “in the trenches” with your customers. Its tempting to outsource your customer support, and I’m not going to argue the pluses and minuses to this approach. But if you do decide to do this, you need to keep a very close eye on what your support team are up to. At the very least, try to read through as many tickets as you can and compile a list of the most common complaints and refund reasons. Some will be long-term changes that take time to implement, but many will be tiny little changes you can make almost instantly. It definitely pays to stay in touch with your customer – if you want to lower your refunds, they’re the first person to ask.

So there you have it – my top tips for lowering refunds. Many of these are common sense but ask yourself “are you doing them?” If not, then start right away. Not feeling motivated enough? Well, ask yourself how much extra money you would make with 10%, 20% or even 50% fewer refunds. Hopefully thinking of this number will get you to take action and make it happen.

About the Author

Chris McNeeney is an affiliate and vendor. He has several websites, but right now he’s working on Affiliate X.

Posted by: Jen Johannsen, VP of Operations

In April of this year, ClickBank added some new enhancements that – when appropriate for your business model and when used properly – can help our customer service team prevent refunds on your products! The new enhancements include additional fields for publishers to add a customer service phone number, a customer service email address, and product titles and images for all of the products listed in their account. Information on all of these additions can be found in the 2008-04-15 ClickBank Release Summary.

Recently, I asked our customer service representatives to name the number one thing they felt publishers could do to help them save sales when customers call in. Unanimously the response was that the addition of a customer service phone number would be the most helpful! They said they hear from customers all the time that are discouraged by not being able to contact the publisher by phone. Often, they are frustrated by not receiving a response by email, so they decide to just have the purchase refunded instead.

We understand that a customer service phone number doesn’t work for all online businesses, and that helping customers by email is sometimes more streamlined and efficient. However, keep in mind that the customer service phone number that you provide in your ClickBank account is only given out to customers that contact ClickBank directly for assistance (typically when the customer states that they have been unable to get a response from the publisher by email). It is not provided to the customer during the order process, and you do not have to list the phone number on your Web site. However, when a customer calls ClickBank, and we are able to provide them another avenue to get the help they need, that gives your customers confidence that you are committed to their satisfaction!

You should also be sure to add product titles for each of the products that you offer in each account. The product title not only offers the opportunity for you to provide clear information about the products your customers are purchasing before they buy, it also gives our customer service team the information they need to clearly describe the purchase that was made if customers call in and are unsure why ClickBank appears on their statement. If you don’t include a product title by listing one in your account or by passing a title through your sales link, the default “title” is [CB-nickname-item#], for example CB-test1-1. Think about how much more effective a conversation with a confused customer is when our customer service team can immediately provide them with the title of the item that was purchased, compared to the customer service person trying to figure out what the item is by looking at your Marketplace Title or Description.

Every little thing you do to lower your return rates can have a big impact on your profits! Take a few minutes to check your account and make sure you have as much information in place as possible to help us help you.