How is the owner of a large appliance sales network similar to a baker, with the entrepreneur who has an e-commerce site, with the owner of a travel agency?
That everyone would like to be able to sell much more! But how to do it if everyone already has optimized their supply processes and have well-negotiated prices of inputs, and very well defined all the sales channels?
Here are the magic words: “money-back guarantee.” That notably increases the perception of trust and credibility of your company and your products or services.
And how do you achieve that? Giving a transparent and explicit guarantee of unconditional 30-day money back. No questions asked.
Yes, yes, I already know everything you must be thinking … in my business, I don’t know I can … I’m going to melt … it’s going to be full of abuse … the woman is going to buy the best dress, wear it at the party and return it the next day…. the guy is going to buy the best TV to see the final of the championship and then return it … in this country people are Different….
But I have good news for you! None of that happens in practice. But everything contrary. And if you can’t guarantee your product or service, you shouldn’t even try to sell it. Actually the law requires you whether you like it or not. But I admit that in most cases companies refuse to apply it out of fear or suspicion or distrust of their own customers, to the delight of those few who offer an unconditional guarantee and which end up making huge additional profits. If not ask Zara between others.
In other words, if you are not granting an unconditional guarantee, you are leaving a lot of money on the table. A bit of math to understand. The money-back-guarantee offered to customers in very large and bold letters, depending on the type of business can increase sales on average between 20% and 35%, and in some specific cases much more as well.
On the other hand, the use of that guarantee in most businesses ranges from 2% to 8% of sales. I mean, wherever you do the account you end up winning, even if you have some occasional sporadic case of abuse. And all with an additional plus: to the customer that you gave their money back without questions no difficulties, I’m sure they will continue to buy!
You transformed a negative experience (dissatisfaction with the product or service) into something positive (I did not lose anything and fully respected.)
Some concepts that have already been hyper-tested:
- The longer the warranty the better. A warranty of 90 days, or 6 months, or 1 year or “lifetime” causes far fewer returns than barely 7 days. Because having more time people tend to forget the subject and end up not returning nothing.
- Do not be afraid to make the guarantee the central part of your argument for sales.
- Do not be afraid to argue that thanks to this guarantee it is a purchase without risks.
This applies to all types of businesses that sell directly to the consumer. From the kiosk that can offer this guarantee if you do not like the color of the wrapper to the chocolate you bought. Even the ophthalmologist who made a mistake in the prescription glasses, or even the largest clothing retail networks, etc.
In your business, what are you willing to do? You dare to test its fit clear and explicit? Or you will see from the outside how your competition steals your market without you doing anything?
You will be the benchmark that earns the trust of the market and keep most of it. Or will you be one of those who join at the last minute without time to achieve great results? Walk and the world will walk with you, stop and the world will continue walking…