This will be a game changer.
And can multiply your sales!
Everything is a result of a decision. Buying a product is a decision. And NOT buying a product is a decision too. One of the biggest reasons people don’t buy from you is the perceived risk they believe they are taking in purchasing your product or service. These risks can include:
- Making the wrong decision
- Losing money
- Losing time
- Not receiving what they paid for
- Not being satisfied
Do you eliminate these fears with your guarantee? If not, you lose valuable customers who might buy your product if they can try it risk free.
If potential customers know that they can get their money back if they aren’t satisfied, they’ll be less concerned about wasting their money and will be more likely to give it a try. Plus, a lot of people instantly feel better about a product if the seller is willing to stand behind it. It shows that your product is worthwhile and that you aren’t afraid to back it up with a risk-free guarantee.
Domino Pizza is an excellent example, when they created their campaign:
“Fresh pizza delivered to you in 60 minutes, or your money back!” They immediately became the number one pizza place in the Unites States.
How do you write an effective money-back guarantee?
Here are a few simple and fundamental guidelines:
1) Keep it strong and simple. No lengthy conditions, no bottom line. Be brave and confident in what you do, guarantee your results, and bear the responsibility of it.
2) The longer the guarantee period, the less likely people are to ask for their money back. You wouldn’t think it would work this way, but it’s true. If you tell the customer, “1 week free trial”, then a lot of people will consider asking for their money back after a week, and more than a few will do just that. On the other hand, if you say, “30 day money back guarantee”, you will be shocked how many people don’t say a word. First of all, the vast majority of people will feel bad asking for their money back after they used your product. Second, they have plenty of time to think about it, which means they WON’T think about it.
3) If someone DOES ask for his/her money back, refund it immediately, and smile while you do it. Let them know how much you appreciate them giving your product or services a try. You have to refund the money either way, so if you can make it a positive experience for them, they still remain a happy (former) customer. They may just be a great source for referrals, or even come back themselves should their needs or commitment change.
4) Ask your customer for feedback about their experience, including how easy it was getting their money back. You can use it in your marketing materials to let your potential customers know that your money-back guarantee isn’t difficult at all. It’s quick, easy, and hassle-free.
What kind of guarantees you can offer?
Ask people what is their biggest fear about purchasing a product or service, and build your guarantee on these fears.
1) The money back guarantee
A solid guarantee offers several benefits, however, most entrepreneurs are afraid to offer one. If you aren’t offering something that truly sets you apart from your competition, why should a potential customer choose your product or services over the thousands of other offers on the market?
So why don’t more business owners do it? Many businesses fear that by offering a solid money-back guarantee program, a lot of customers will ask for their money back.
Sure, it’s a risk. And there will most certainly be a handful of people who take you up on that guarantee. However, you will have new people buy your product for the sole reason that you give them the reassurance that if they aren’t satisfied, there is no risk to them. And if you are doing your job well, you will earn far more in earnings from new and retained customers than you will ever pay out in refunds for dissatisfied ones.
It’s simple math: Risk losing a little money, but making a lot more in profit in return.
The question is: which is bigger? Your ego? Or your desire to build your business? If you are worried that you might have a customer who asks for a refund, you are letting your ego win out over the opportunity in front of you. If you can beat your own ego, you will reap the benefits of a unique tool that helps you build your business, and once you do, the sky is the limit for your potential growth!
Don’t be afraid to offer that you will give their money back if they didn’t like it.
The risk-free guarantee
Risk-free guarantees work best with high-cost products and services. In an age of “freemium” business models, the free trial has become not only the norm, but also a customer expectation.
A risk-free guarantee gives your client a chance to try something before they buy, or at least commit to buying.
The great thing about a guarantee like this is that it pushes people over the hump and moves them from “I’m considering it,” to “what the heck, I’ll try it.”
100% satisfaction guarantee
Instead of simply offering a customer’s money back or giving them a chance to try before they buy, you create an offer that’s advantageous to both the client and you.
From a customer’s perspective, you’re not only reducing risk, but you’re eliminating it almost completely. You’re guaranteeing a result, which as we talked about earlier, is the most important aspect of the conversion. You’re guaranteeing their satisfaction, which in turn negates the opportunity for regret.
Offering a risk-free guarantee offsets these doubts, and lets customers know that you won’t leave them hanging. Knowing there is no risk and that they don’t have anything to lose by purchasing your product is a powerful purchasing motivator. This “reverses” the risk and places some of it on the seller. This is called “risk reversal.”
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