Chargeback logic
- Thread starter o hai guyz
- Start date
Care to elaborate?
I copied this setup from a competitor doing millions in revenue and I haven't had a chargeback yet. Keep in mind this is for a membership site. No physical products are involved.
My post was directed toward people who are worried about chargebacks.
Your customer service number is a recording asking people to email in. You don't have any chargebacks. You don't need any help.
As far as why it would be a bad idea for high risk nutra or high risk trial continuity? People will hear that recording and call the bank.
If this is how you view your business model, it is doomed to fail before you even start.
At what point did I say that was how I was planning on running my rebill?
That model is what I have inferred after analyzing a dozen high risk continuity offers.
Excuse me good sir, but you appear to have dropped your knowledge all over the fucking place.
+rep
I think he just means the way you phrased it but I suppose you could say that is how the bad merchants run and not the way you want to run in which case you'd be right.
"The way I look at it, you could get in $5 + $80 + $80 = $165 worth of charges in before the customer even reviews their statement.
This assumes they check their statement right away. Most people don't look at the bill until a few days before it is due, which is often 15-20 days later.
You might even be able to get in another month's charges in at that point."
This makes it seem like you are billing people for things they had no idea they were paying for. This is the same viewpoint that causes people to remove the checkbox on page 2 because it does not "convert as well" or to put the disclosures in smaller text.
The correct way to look at it is: I put up all the legally required and suggested disclosures and required my customers to agree the terms and conditions of the offer. It is impossible for a customer to start a trial with us if they do not agree to the terms and conditions. Some of them cancel before they are billed and others are entered into the program as they agreed to be. Some of them may contact us and say they forgot what they agreed to and in those cases we will try to remind the customer of what they signed up for, walk them through the order process and try to reach a fair middle ground between us.
Oh it also helps if your product and/or service actually has some value and works. One of the ways to de-escalate callers is to ask them how the product or service is working for them. If they all say it does nothing then it makes the customer service agents job a little bit harder as they try to convince the customer to try it a bit longer to see results.
There are two main walls that agents must overcome to successfully prevent a dispute or complaint from an upset customer. The first is the billing model and walking the customer through what they agreed to and having them realize they were billed the way they agreed to be billed. A good rep can overcome this one almost every time. It obviously helps if your page is compliant.
Once that wall is down, most calls have the additional issue or wall of the product/service performance. If the customer says they think the product is working then this is pretty easy as the rep will congratulate the customer and encourage them to continue with the product or service to reach their goals. They will tell them about other customers they have talked to that met their goals and how happy they were and what they could do and how they felt after. If the product is not working, the agent still needs to encourage them to keep trying and using the product and tell them about results from other customers but it is a much harder sell.
Again, huge difference between bad customer service and good customer service. Bad customer service takes the angry calls, tells the customer sorry but you agreed to this and cancels them without actually working to de-escalate the caller properly and knock down those two walls. They need to be doing it on every upset refund request or cancel call.
bta is a major player, so is the penguin. the fact that these two grace the wf boards still to this day shows me how great of people they are to give out free advice.
I am constantly amazed at the number of people that get into the continuity game without a solid call center partner.
There were other models that focused solely on zero customer usage and hiding the charge on their bill-- think LEC/bill2phone digital products.. and those came crashing to a halt in Q3 2012. The nutra space is different. Get a solid formula that actually has some positive clinicals behind it. Follow ALL compliance laws (and suggestions). Work with the local branch of the FDA & FTC prior to your launch-- and for fuck's sake-- keep a tight leash on your publishers.
There's a ton of money out there for the people who aren't too lazy to do things the right way.
Yea, I agree. I wouldn't want to run like that since there doesn't seem to be any longevity in it. Even if you did run for 1+ years, I'm sure there would be plenty of complaints and bad reviews if a customer were to google your brand name.
You mentioned earlier not to bill them for another month's supply until day 45. But wouldn't that leave them without any product from day 30 to day 45?
A couple major things to consider. Your level of disclosure and consumer acknowledgement of future charges will likely be inversely proportional to your CVR and month 1 retention. However it will be directly proportional to later cycle retention. You need to be thinking long term, way past the first few months. Wouldn't you want to have a huge long tail of people that have been with you many months or years? That's the type of customer you want for the long haul of the business. You need to view your customer base as an asset that you cultivate and maintain, not a commodity that you bilk.
The only people able to continue to operate long term in the space, meaning multiple years, are people that evolve and continue to find ways to satisfy the ever changing needs of the consumer. Also, not every product is meant for continuity, the same price point, or same billing intervals. I am not a fan of and think the market will really continue to push out trials that retro bill and move toward people who truly sample and then move to the option of autoship.
Yes, The ideal way is to send out a 40 day supply on day 1 then 30 day supplies after. Usually they don't get the product for like 3-5 days, and start the day after so there is a gap. They can always call to have that next billing date moved up a few days or you can send a free shipment.
Change your descriptor to read "wal-nart"... No one will notice the billing and you are in the clear...
j/k of course!
j/k of course!
I have to disagree. Finding the right provider who understands a negative option model will make all the difference. It has everything to do with the competence of the team, their management and the leader's understanding of how to handle these customer's.
