Someone once said, the things that are true in life are not the things you want to be true.
Well, I’m going to tell you something that’s true, but you might not like it. Here goes…
Want to increase your sales overnight? Probably the easiest way is to add a guarantee. Or, if you have a guarantee, to beef it up.
The reason guarantees are so powerful is that, when two parties get together to do business, there are always uncertainties. And that means one side ends up taking on most, or all, the risk.
By offering a guarantee, you’re saying to your prospect, “The risk’s on me.”
You’re also saying, “We believe in what we offer. We stand behind the claims we’ve made about our product. And, if our product doesn’t live up to those claims, we don’t deserve to keep your money.”
That’s a powerful message. It’s the ultimate, “Put your money where your mouth is” positioning.
So don’t be surprised if adding a guarantee increases your response rate by anything from 25% to 250%. And, if the price of doing that is a few more refunds, is that really a problem?
OK, let’s move onto specific tips:
#1: Make the guarantee specific. Spell out exactly what the client should expect if he buys from you, in what circumstances he can exercise the guarantee, and how to do that.
#2: Make it easy for him to ask for a refund if he deserves one. Treat people the way you’d like to be treated.
#3: Make it pleasant. One phrase I like to use is, “No questions, no quibbles and no hard feelings, either.” And live up to that.
#4: Longer guarantees tend to increase sales, while lowering the refund rate. That’s because, with short guarantees, the client has a ticking clock in his head – he needs to make a decision quickly: either keep it or return it. With a longer guarantee – 90 days or a year – he’s more relaxed. (And, frankly, more likely to forget to return it, even if he never used the product.)
#5: Finally, get creative. Guarantees come in many forms:
– There’s the “100% money back” guarantee.
– The “better than money back” guarantee.
– The “if it doesn’t work, we’ll pay you” guarantee.
– The “we won’t charge your account for 30 days” guarantee.
This should help get you started.
And, if you’re still thinking, “We could never offer a guarantee, it’s too risky,” I have a client who designs and fits kitchens. He allows clients to get their money back at any point within 60 days – and that includes the cost of labour.
Now, THAT is a ballsy guarantee.
All the best,