Everyone knows that offering a guarantee is an excellent way to increase sales and conversions because it removes the risk and uncertainty from the sale. In effect, the seller is saying, “I’ll assume all the risk, and if anything goes wrong or it doesn’t work the way I’ve said it will, you can have your money back”.
Whilst most people know that offering a guarantee is likely to increase their sales considerably, many of those same people are afraid to offer a guarantee for fear that they will ‘get ripped off’ by their customers and be besieged by queues of blood-sucking customers all claiming their ‘money back’ so they can get the goods for free.
What these people don’t realise, however, is that ‘human nature’ being what it is means not only do very, very few people ever cheat you, but many people who are actually entitled to claim on your guarantee simply don’t bother. Why? It has to do with the Laws or ‘Triggers’ of ‘Influence’. Basically, if someone gives us or offers us something (eg, offer a guarantee), we feel obliged to offer something back (i.e. to ‘play fair’ and not take advantage of that goodwill.)
But what a lot of business owners DON’T know is there are guarantees… and there are GUARANTEES.
Not all guarantees are created equal. In other words, there are some very simple ‘Rules’ you can apply whenever you decide to offer a guarantee that will make those guarantees much more compelling and so increase sales and profits.
Three Ways To Offer A Guarantee That SELLS:
1. Make your guarantees longer. It’s counterintuitive, but the longer your guarantee, the less likely you are to be called on to honour it. Why? Because if you, say, give a 30-day guarantee, by the time the end of the guarantee period rolls around, the purchase is still fairly fresh in your customer’s mind. If they haven’t made use of what you’ve sold them yet, or convinced themselves it works, then often they’ll err on the side of safety and ask for a refund. But give, say, a one-year guarantee, then by the end of the year, they’ve probably forgotten they ever spent the money with you.
2. Make your guarantees more exciting and generous. Take two extremes and see which one you think is the most compelling and persuasive: “I promise, if Superwash doesn’t get your clothes clean, I’ll give you your money back” or “I promise… if Superwash doesn’t get your clothes cleaner and fresher than they’ve ever been before and your friend don’t actually accuse you of buying a whole new wardrobe… I INSIST on buying the whole bottle back off you for TWICE the price you paid for it”.
3. Make your guarantees plain and simple. If you are going to offer a guarantee, offer an unconditional guarantee. I’m forever amazed by the small print people insist on putting in their guarantees, loads of pernickety terms and conditions. Forget them. Not only do they make you seem a bit of a weasel when your customers read them, but they water the whole idea down. Make your guarantees unconditional; or if you can’t do that, make the conditions big and bold and give a reason for them.
So, take time this week to look at your customer guarantees and see how you can change them to make them even more compelling than they are now.
What do you think? Do you offer a guarantee? Does offering a guarantee work for you ?
Leave me a comment, just to show your alive 🙂
To Your Continued Online Marketing Success,