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THIS WEEK
Top 7 Tips for Gutsy Guarantees
ALSO IN THIS EDITION
Top 7 Tips for Gutsy Guarantees
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A number of my clients this week have been struggling with working out their of guarantees, which is why I felt compelled to share this great article from the vault.
Let’s assume you have a brilliant product or service, and you want to make it an absolute no brainer for people to buy it – what can you do? One of the best things you can do is to take away all the risk for the purchaser and give a guarantee.
People these days are worried about being ripped off and want some reassurance that you will not do that to them. By offering a guarantee you reassure them of your good intentions and in doing so, you will reduce their resistance to buying your goods or services.
All businesses can offer voluntary guarantees in addition to those required by law. You can offer:
- Money back guarantee – where you refund the purchase price for whatever reason
- Time guarantee – where you guarantee a person to be on time or a job to be completed on time
- Satisfaction guarantee – where you guarantee people will be happy with your product
- Results guarantee– where you guarantee a particular result will be obtained (e.g.: page 1 on Google for 50% of your keywords within 12 months)
- Product guarantee – where you guarantee the particular qualities of a product (e.g.: won’t go hard in the tube)
- Price guarantee– where you guarantee a particular price point (often used if someone sees the same product elsewhere advertised at a lower price)
- Service guarantee– where you guarantee a particular standard of service
Here are 7 tips for writing powerful guarantees that will help you convert lookers to buyers:
1. The longer the time period the better!
If you only give a 30-day guarantee, you place urgency on the person to use/test your product, and then get back to you if they are unhappy. You are triggering increased returns. By extending the guarantee period, you will reduce your return rate. The longer the guarantee = the stronger the guarantee.
2. Give 100% back
Give every cent back to the consumer. Don’t hold back handling fees or other fees and charges – give the lot back for best results!
3. Take out the fine print
Take out all the “subject to” and “If you tell the person at the time of the event” type of words. It is best to offer an unconditional guarantee for the most power.
4. Take out the hype
In the past few years, some people have been offering, “Triple your money back” or “$100 for your trouble” type of guarantees. People see them for the hype they are and steer away from them.
5. Focus on the positives
Write your guarantee in a positive way; “If you are not overjoyed with our XYZ product for any reason, simply return it for a full refund”.
Recent psychological research has shown the simpler the wording of the guarantee, the more it converts. People are willing to read long copy about your product or service, but when it comes to the guarantee, they want straightforward "You can cancel at any time" text.
6. Act quickly
If you get a refund request, then you need to action it within 24 hours.
7. Don’t take it personally
Treat all refund requests as merely feedback that you need to listen to, rather than a personal attack. And treat the person making the request as a valued client rather than a problem. By not taking it personally, you have the opportunity to build relations rather than break them down.
For example, with my HR Manual I offer a 90 day money back guarantee. Last year I had 2 refund requests – one because the manual was too detailed – the other because it was too simple. Both were fully refunded the same day their request came in. I know that my manual was not right for their business, so I had no problems in meeting their requests. Both clients sent lovely emails thanking me for my prompt response and understanding.
So, where can you guarantee your business?
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| Book of the Week: Brandwashed |
A new book release that is confronting, challenging and darn funny all at the same time is Martin Lindstrom's latest book - Brandwashed: Tricks Companies Use to Manipulate Our Minds and Persu ade Us to Buy.
This book looks at the latest neuromarketing research - including the gems that :
- when people think of their iPhones, the same part of the brain lights up as when Christians think of Jesus,
- newborn babies, whose mothers regularly watched "Neighbours" during their pregnancy, became more alert, less agitated and had a reduced heart rate when the theme song was played to them,
- ho-hum celebrity models in ads generate a stronger emotional response than a breathtakingly gorgeous noncelebrity endorser (fame trumps beauty),
- just a fleeting exposure to an established brand makes us take on the characteristics of that brand - e.g. briefly looking at the Apple logo makes us think more creatively,
- owners of hybrid cars drive more miles, are more ticket and accident prone and even bash into pedestrians more,
- consumers who try a new product are likely to stick with it for an average of 18 months,
- in grocery stores, when slow Muzak is played, customers buy 38% more purchases,
- the latest trend isn't unit pricing, it's digital shelf prices that fluctuate with the time of day and the weather.
But the most confronting part was where he reported a real life "Meet the Joneses" experiment, where he secretly placed a family into suburbia with the intent for them to create word of mouth advertising and influence on their community for a range of products. This experiment alone is worth the price of the book and is a must read for both the ethical issues it raises as well as the findings.
It would be remiss of me not to mention that the neuroscience community is up in arms about this book. The scientists are extremely unhappy that much of the research referred to in the book has not been written up in any peer reviewed journals and that the Morgensons research has not been through any ethics review protocols.
This is the bigger question of the blurring of science and marketing - when does marketing become science and visa versa.
Me ... I found the book a fascinating read, with much food for thought generated from it. Add Martin Lindstrom's - Brandwashed: Tricks Companies Use to Manipulate Our Minds and Persuade Us to Buy.
to your reading list.
The story behind a business or a creative person is always fascinating - in fact the story is what makes the product or service unique. In this post I share the story of a brilliant modern artist.
exuberantly yours
Ingrid
Heart Harmony
Legal stuff: This newsletter is intended as only a general guideline for Australian businesses. You should seek specific advice for your situation rather than relying only on this newsletter
Earnings disclaimer. Some of the content may include advertorial information, which means I may receive financial compensation for the products I recommend. But - unless I know and trust the product, I will not recommend it.
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