Using Customer Service As a Tool Against Recurring Chargebacks
Often times, merchants are so determined to prevent fraud, they completely overlook seemingly insignificant issues that actually negatively impact on the business in a big way.
Customer service is one of those issues that can't be ignored while on a quest to detect potentially fraudulent activity. In all likelihood, taking the time to improve customer service will impact your profitability in a bigger way than you anticipated.
A recent study found 81% of consumers filed a chargeback out of convenience. They perceived a call to the bank as a more convenient option than reaching out to the merchant.
Perhaps even more alarming is the fact that nearly half of the study participants didn’t even know they were filing a chargeback. They incorrectly assumed the bank could terminate a service or provide information about a questionable charge.
There is no reason why those study participants should have been confused—or thought the bank was the less stressful point of contact.
Merchants need to be in constant communication with their customers. If it is easier or less stressful to contact the bank instead of your customer service team, your business is asking for trouble. If the consumer doesn’t understand what’s involved with the purchase or how to secure a refund, you’re dropping the ball.
Subtle changes you can make to serve your customers better,
- Always thank customers for their business.
- After you offer a suggestion for the current situation, see if the customer is willing to provide tips on how to improve future transactions.
- Follow up after the issue has been resolved.
- Create pre-determined responses for 20% of the cases you experience 80% of the time. This ensures you are addressing issues quickly and effectively.
- Reduce the number of necessary steps in your return process.
- Foster a relationship with your top customers. Try making contact with your top customers once a month to see if there is anything you can do for them.
- Provide round-the-clock customer service. Be available 24 hours a day, 7 days a week. E.g FreshDesk, Olark
- Determine the best way to handle any given situation, ensuring every customer receives the best attention possible. Some customers will be angry, others just want to voice their concerns. Give the customer what they need
- Is the customer pleased with the outcome? Don’t end the conversation until a satisfactory agreement has been reached.
- Join the conversation and reply to all comments on social media.
- Bestow random acts of kindness on your customers.
- Review your business’s policies and practices. Create a top 10 list of things that need to be changed. Then, adjust them.
Customer service could make or break your business. Improve customer service efforts and watch the number of chargebacks decline. Seriously, You should give it a try!
Sometimes, it takes more than just a tweak here and an adjustment there. If your business is on the brink of destruction because of chargebacks, you need to drastically overhaul your business practice.