Guarantee for success
Are you offering empty promises, or are you willing to put your money where your mouth is? Are you willing to guarantee your customers’ results?
The 18th century entrepreneur Josiah Wedgwood pioneered many of the marketing strategies used today, including the satisfaction-or-money-back guarantee on the entire range of his pottery products. He took advantage of his guarantee offer to send his products to rich clientele across Europe unsolicited. The money-back guarantee was also a major tool of early U.S. mail order sales pioneers in the United States such as Richard Sears and Powel Crosley Jr. to win the confidence of consumers.
Sure, the idea of a money-back guarantee is scary at first thought. But you can gain more customers and sell more products – at a premium price – by offering a money-back guarantee. What are the benefits of offering a guarantee program?
- It sets your business apart from others
- You remove a customer’s hesitation about buying your product – meaning more customers, including those who wouldn’t buy otherwise
- You create a trusted image for your brand, boosting your reputation and generating more leads and sales with customers who would normally buy from your competitors
What are you: the lion or the mouse?
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 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 from you 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!
So, what do you sell?
Before we talk about how a money-back guarantee can help you generate leads, let me ask you a simple question:
What do you sell?
Is it business coaching? A car?
Or do you sell promises?
Do you sell financial services, or freedom?
We already talked about the importance of selling what the customer wants. We even went through a targeted series of questions to make sure you know exactly what their goals are. So if the customer wants to be more confident, are you going to sell them a Mercedes Benz? NO! You are going to sell a tool that increase their self-confident by driving a luxury car what is a status symbol. You are selling them a result – the solution to their problem.
Are you selling results? If you answer yes: do you believe in yourself and your product enough guarantee this? Can you say with confidence: if you don’t like this product, and don’t see the results you are looking for, I will refund your money?
But if you can’t guarantee that your product works, you have to put more trust in your knowledge and experience. Is it possible that you are offering results that your product can’t achieve? Or are you not certain how to make them happen?
Good entrepreneurs take pride in their customers’ success. Because of that, they can offer a guarantee that they can deliver the promise. Your competitors may offer promises, but you offer GUARANTEED promises. This alone can boost your sales like no other single marketing tool.
So you are probably asking, how do I write a guarantee?
How do you write an effective money-back guarantee that will inspire your potential customers to buy? 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 promises, 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, “If you don’t like the first module of this program, we’ll refund your money”, then a lot of people will consider asking for their money back after their first module, and more than a few will do just that. On the other hand, if you say “If after the first 30 days, you don’t like this program or aren’t starting to see results, tell me, and I will refund the whole price”. First of all, the vast majority of people will feel bad asking for their money back after you spent a fair amount of time with them and they used your services. 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 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.
It’s a great way to measure the effectiveness of your marketing
The number of people who ask for their money back is also a great way to evaluate the effectiveness of your marketing.
We’re going to assume that you offer excellent products and services, so quality shouldn’t an issue. The only reason that people might ask for their money back is because you didn’t find the right customers for your business.
If you only have a tiny handful of people asking to take advantage of your guarantee, let’s say 1-2%, then your marketing isn’t as effective as it could be. You aren’t reaching enough of you target audience.
“Why?”, I hear you asking. “Don’t I want a really low refund rate?” Yes. And no.
If you have a strong marketing campaign, your message and money-back guarantee will find more people who are interested in your product, but they are on the periphery line of your potential customer base. These are the people who normally wouldn’t buy if you didn’t offer the guarantee. However, the guarantee breaks down the imaginary wall between the customer and the product they are considering buying. As a result, some of the people who are on the threshold will ask for their money back simply because they do realize that your product is not optimal for them.
However, the great majority of the people that you reach with your marketing efforts will NOT ask for a refund. This means that the added profits from the customers who stick with you will more than offset any lost revenue due to refunds. If you can keep the average rate of people making use of your money-back guarantee to 5-10%, you know that your marketing efforts are effective and you have reached as much of your targeted audience as possible.
For example, let’s say have 20 new people who take the plunge and buy from you because they are reassured by your money-back guarantee. 2 of them ask for their money back after trying your product, because it just didn’t fit their needs. You still have gained 18 new customers that took the chance on you BECAUSE you offered them a money-back guarantee.
So at the end of the day, what is the lesson to be learned?
Don’t be afraid to offer a solid guarantee for your products and services, because you will generate far more money from new sales than you lose in refunds to dissatisfied customers. Because of this, you have the opportunity to completely transform YOUR business, if you are willing to put your money where your mouth is.
In my “The Original Marketing Guide for Small Business Owners” offer, I have a 30 days guarantee, when I send their money back, no questions asked, and they can keep the book. Why? Because I know that if you put the work in it, and do everything the way I teach you to do you WILL have new customers continuously and build a successful business with full of profits. Not only the next month, but next year and the next 5 years too.
BUT you have to put work and effort in it. The information about how to create your own marketing plan, and how to manage your business to be a top leader, and build a name in your industry. I tell you, and you will do yours in your business.
However if you are not creative, you have tons of examples what you can use even today to start to boost your business. And a lots of lots of help to create your own marketing campaigns.
Take a look at it at the link below:
Stop reading and start creating!