Plan for Buyer's Remorse

We've all bought something expensive, whether it was a college education, a car, a house, or a foundation repair project.  The actual dollar value doesn't matter--it's about perceived cost--does it feel expensive to you?  For some of us, buying a new laptop is just a run of the mill expense, for others that same purchase is a HUGE investment.  

Have you ever felt a sense of panic or anger right after you purchase?  We call this Buyer's Remorse and the phrase was coined in 1967 by Gerald Bell.  


Buyer's remorse is the sense of regret after having made a purchase. It is frequently associated with the purchase of an expensive item such as a car or house. It may stem from fear of making the wrong choice, guilt over extravagance, or a suspicion of having been overly influenced by the seller.




According to the Wall Street Journal, Buyer's Remorse was the number 2 reason cited for product returns and contract cancellations in 2010.  According to research done by the Harvard Business Review, approximately 7% of a company's gross sales are lost annually across the board due to Buyer's Remorse.  This percentage was much higher in service related industries such as Real Estate and Home Improvement--in some industries, it was as high as 23%!


Buyer's Remorse manifests itself differently with different personality types.  If you're familiar with DISC profiles, you'll really love this list of common manifestations:

COMBAT BUYER'S REMORSE--NOW!!  Gerald Bell wrote the book on Buyer's Remorse--it's called The Automobile Buyer After the Purchase.  According to Bell, "customer satisfaction immediately after the purchase is a key factor in brand loyalty.  Managers are becoming keenly interested in how a new purchaser feels after buying" (p. 12).  

Here's the cliff notes version:  

Bell and his team determined that instilling confidence in service and products is the key to getting people over buyer's remorse.   

Overcoming Buyers Remorse:

• Tell what they bought, why they bought, and how smart they are for doing it!
• Repeat these affirmations often when communicating processes
• Provide receipts, communications, and "What Happens Next" steps
• Receipts need to be received within 4 hours
• Communications should occur immediately, even if you relay that you're working on it
• Processes need to be written down and given to clients
• Over communicate EVERYTHING
• Most people start to experience buyer's remorse within minutes of committing to a project or contract, so have your processes in order BEFORE you sell something
• Give people somewhere to go to find written answers and someone to call with questions
• Thank them--repeatedly throughout the process and at the conclusion of business
• Handwritten cards, a small gift and a final copy of all documents should be presented quickly without the client having to ask