Question:
I know your forte is marketing, but Dan and I are looking for LERN’s recommended refund policy guidelines. We have lots of LERN binders, but we aren’t finding what we are looking for. Can you help point us in the right direction?
Answer:
I will see what I can find, but let me give you the quick answer right here.
Senior Vice President Julie Coates is our top brochure and program expert, so she can clarify, add or correct anything.
1.The Ideal Refund Policy is a full money back guarantee.
Direct marketing guru Paul Franklin, who consulted with LERN and LERN members, has continually monitored what works in the direct marketing and catalog business (which includes continuing education) and has found that income basically goes up around 10% with a full money back guarantee.
While not many continuing education units have implemented the full money back guarantee, we believe the Colleges of Spokane, Washington; and more recently Pasadena City College have implemented the practice. As you may know, LERN’s UGotClass has had a full money back guarantee for five years and it is very successful. Our refund rate is 0.005 and we would not give it up for anything.
2.Liberal Refund Policy next best thing.
While the Ideal is still the ideal policy, the vast majority of c.e. units do not offer a full money back guarantee. The next best thing is to make it as liberal as possible. Give back as much as you can, as late in the course as you can.
3.Critical is positive wording in your Refund Policy.
All c.e. units can and should and must use positive wording in the brochure for whatever refund policy they have. State what you can do first; don’t start with what you cannot do. Avoid “not” and “must.” Avoid any restrictive wording, such as “in order to receive a refund, you must…..”
For example, if you will transfer that money for another course, state that first. If another person can be substituted, note that first.
4.Vouchers not money.
You always want to offer the person a voucher instead of money. The data shows that only half of vouchers ever get used. And yet, people are happy getting a voucher. It is a statement of good faith. So vouchers of course save you processing checks and the finances, but they also result in happier customers and less cost, about half, for you. Most programs do, and should, give back money if requested. But always offer the voucher first. A few programs I believe offer more than the cost of the course in voucher form, because obviously you still come out ahead money-wise.
Them’s the basics for now. Let me know if you want more, samples of refund policies, etc. and we can get you more information.
Thanks for asking Melissa and Daniel. =Bill