You can’t totally prevent chargebacks, but you can profit as a result of lowering them!
Of course you know accepting credit cards equals increased business correct?
But discovering how to prevent chargebacks had better be a part of the conversation as well.Agreed?
Otherwise you definitely run the risk, of starting an avalanche of paying refunds and dealing with some less than honorable consumers.
Too many chargebacks and your entrepreneurial dreams, are headed for trouble. This particular post, was written, to hopefully prevent this from happening, to any large degree.
Merchant Account Purchases Practically Fuel The Vast Majority Of Online Sales.
Here are some powerful stats that will open your eyes to the enormous possibilities if you’re still not convinced about (whether) the potential increase in business is worth the effort of trying to gain merchant account status.
A staggering number by any standard of measure, but over 88% of all Internet and (believe) it or not, phone sales are paid for by credit card merchant account. And that trend will only continue to grow.
And just the fact that you offer some type of credit card payment system, has the potential to increase your sales by as much as 400%.
And no cash starved, struggling small business owner can afford to turn their nose up to that type of profit potential.Don’t you agree?
It’s Definitely Okay To Build Your Sales Funnel By Offering Credit! (Just Take The Necessary Pre-Cautions!)
Of course the hard cold reality of trying to establish merchant account status (from a local bank) for the first time (especially) when you’re a new untested, brand new start up company, is at best an up hill climb.Is it not?
If you can get it at all, you’re generally looking at (much) higher (introductory) interest rates and tons of other objections (especially) if you’re a home based business entrepreneur and you haven’t been super successful (yet.)
And your track record is less than twenty four months of documented steady income etc.
There Is A Positive Flip Side To Effectively Lowering Or Strategizing To Prevent Chargebacks.
The remainder of this post is actually about five bankable benefits that you can expect as a direct result of preventing chargebacks, not the actual strategies and techniques you would use to actually prevent them from happening in the first place.
One obvious thing you can and should start (inexpensively testing) is, include some type of (high perceived) value, yet low cost free bonus(es) with your orders and always keep the lines of communication open with your customers, no matter what size the amount of their order is.
Because in far too many instances,if your customer doesn’t bother to complain (or inquire) directly about why an order is late etc; they’ll simply initiate a chargeback.Ouch!
Make Your Marketing Funnel About The Potential Benefits To Your End User And You’ll Be Light Years Ahead Of Your Major Competitors!
Of course with all this talk about the potential increase in sales (the dark side) of gaining merchant account status is this.
You’ll also get your share of dead beats that constantly order by credit card and as soon they (either) download your material or physically receive it, they’ll initiate a chargeback.
But let those sobering figures inspire your conversion optimization strategies not discourage them.
The Five Big Bankable Benefits To Preventing Chargebacks.
Benefit # one: Obviously when you prevent refunds (as much as) humanly possible and lower your overall chargeback rates, because nothings 100%.
You get the added benefit of being able to create and sell more often to repeat customers and clients.Plus, sell them more expensive items without having to pay 500% retail cost, in order to find a new first time buyer.
They are more likely to join some type of continuity program. And there by lower your cost of sale dramatically, because you won’t be spending the traditional 500% or more trying to constantly create new first time customers!
You Will Definitely Want To Utilize Some Type Of Direct Marketing Strategies And Or Tactics!
That figure and entire process doesn’t seem like it’s that crucial (until) you’ve actually been in business long enough to truly appreciate how (both) time consuming and resource intense the entire first time ‘customer acquisition’ process is.
Benefit # two: Once your first time customer(s) transition into satisfied repeat customers, then they typically become major advocates for your business, products or services.
And advocates basically (ultimately) fall into two distinct camps:
1.) A regular advocate upgrades to “Evangelical advocate’, because they start spreading positive word of (both) mouth and mouse about your business high and low. Their active on social media platforms like twitter and Facebook etc.
You Definitely Want To Add The Advocacy Component To Your Long Term Marketing Strategies!
2.) And they also become more open to becoming your highest and most productive type of commission only affiliates. Because they already totally love your business, products or services, they may as well be adequately compensated for their passionate advocacy! Right?
Benefit # three: Face it, satisfied customers are your best type of documented case studies. And case studies are proven to help establish both your expertise and your overall credibility. No matter what your particular niche is, your target audience loves well documented success case studies.
Where you break everything down into bite size nuggets that they can really dig into and totally understand.
Case Studies Is A Proven Way To Conduct Lead Generation!
Benefit # four: You’ll be able to consistently gain greater (not) to mention deeper insights into your target audiences real needs when you effectively lower and prevent chargeback rates, because your satisfied customers love to share, (both) their frustrations and positive suggestions with receptive service minded entrepreneurs!
Benefit # five: You’ll also help create a commission only army of referral creating maniacs, by preventing and lowering your chargeback rates.
Let’s face it, people love to brag (especially) to the most important people in their life about how well their being spoiled by company or service X.
Take Your Entrepreneurial Skills And Start Better Service Your Customer Base And Watch Your Bottom Line Steadily Grow!
It may as well be your company or service they’re bragging about entrepreneur, don’t you agree? Well there you have it in a nutshell my friend.
Five simple ways you will definitely benefit big time, when you proactively prevent chargebacks, or at least seek to lower your overall rate.
As always, if you got any value out of this post, please Google Plus or tweet this. Thanks!
And be sure you grab your explosive free 22 step small business marketing idea kit series. It’s a $97 dollar value and it’s free!
