How A Guarantee Can Increase Sales By 300% But Most People Get It Wrong
Yep, 300% is really possible and I’m not trying to blow smoke up your kazoo.
Ok. Let me explain.
See, the word ‘guarantee’ is being thrown around a lot nowadays and practically everyone is using one, even the big boys are jumping on the band wagon and getting involved. (seen the Sure adverts?)
But now here’s the thing, I rarely see one done RIGHT.
If you think about it, whenever you ask a customer to buy from you, you’re asking them to take on some level of risk.
In effect, you’re asking them to trust that you’re telling them the truth and that they should believe what you say and trust that you’ll deliver on what you have promised them but…
Doing This Is Becoming More and More Difficult To Do
Because we’ve become a nation of sceptics.
All these TV shows like Rogue Traders, Cowboy Builders, Watchdog etc has made everyone think that businesses are trying to ‘get one over on them’ (and unfortunately a small minority are) so it has made people extremely sceptical.
This is why it’s making it all that more difficult for us ‘legit’ companies to make a sale.
So this is where the guarantee has come into play and is being used as a way to help remove that scepticism (and risk) by transferring all the risk on YOU, the seller.
Now This Can Be A Good Thing For Some BUT it Can Also Be A Bad Thing For Others
It’s bad for those, – for a lack of a better phrase – that don’t have their act together.
If you have a shoddy product or service, then putting a guarantee in place is the perfect ammunition you’re customers need to let you know about it…and FAST.
But for those who have a good product or service then a guarantee is a powerful way to helping your customers or clients see just how good you actually are and giving you that all important competitive advantage over your competition.
But the problem is this,
Most businesses guarantees are poor – and I mean really poor.
They lack any real impact and meaning which makes customers not pay any attention to them whatsoever.
They just come across as being a ‘marketing gimmick’ rather than an actual real legitimate guarantee.
So What Does A Bad Guarantee Look Like?
Have you seen a guarantee that is so unspecific, you don’t really know what they are talking about?
Well, here’s a perfect example…
That’s Activia’s guarantee. Can you see how vague it is?
You don’t really know in what circumstance you can even get your money back?
Love your new normal? What does that even mean? who loves ‘normal’!!
Or are they talking about if you don’t like the taste, you get your money back? or if it doesn’t help make you feel better? or is it because you just didn’t like the green packaging? Who knows???
Now, my guess is, they’ve made their guarantee so weak and vague ON PURPOSE.
They’ve seen other companies doing it so didn’t want to feel left out and not ‘up with the times’. (typical corporate approach).
But in reality, they don’t actually want to give you your money back so they make it as hard and as confusing as possible to understand.
And you can tell this is the case because they don’t even tell you ‘HOW’ you get your money back.
Now, I’m not a betting man, but I think it is a pretty safe bet to say that no one has probably ever taken them up on that guarantee because you just don’t know how to.
So with you now knowing what a bad guarantee looks like.
Let me now show you…
What A Good Guarantee Looks Like…
Now, as they are so hard to come by, I thought it’ll only be right to show you one of ours that we ran. 🙂
If you didn’t see this when we were running it, it’s the guarantee we used when we were giving away our new book and were asking to just pay P&P to get it.
Here’s what we said…
Can you see the difference.
It’s much more detailed, much more specific and it’s a pretty bold promise overall.
It tells people we 100% believe in our book so much so that we’re willing to put our money where our mouth is.
By doing this, it helps build trust because people can see how much we believe in what we say and when you do that, you start to eliminate the customer’s risk.
Now, I know that while I’m writing this some people will be saying…
“Yes Gary, but you’re going to get people take advantage of you?”
And the answer to that is…
Yes, in some cases that will happen.
But the majority of people are trustworthy and as long as you deliver on what you do, they won’t take advantage of you.
So Why Have Such A Bold Guarantee?
Well, besides it building trust, it also helps your sales.
See, in every circumstance where we’ve implemented a guarantee like what I showed you, it has always managed to get us a much higher sales rate compared to when we didn’t include one.
So the extra sales we generate from using one, ALWAYS more than makes up for the small minority of people who want to take advantage of our generosity.
So if your argument for not using a guarantee is you’re afraid you’ll suddenly get an influx of returns. Don’t be.
Yes, you will get some, but it will never just suddenly spike because you now offer a guarantee.
If your product or service is as good as you say it is, then the amount of extra sales will easily outweigh any extra refunds you do get anyway.
In fact, a client of ours recently implemented a guarantee on all their products (after a lot of convincing mind you) and they saw…
A Whopping 300% Increase In Sales
But guess what?…
They saw a ZERO percent increase in refunds.
So hopefully that should put your mind at ease.
Ok, that pretty much wraps up this article.
All that is left for me to say is go and implement a guarantee like I’ve shown you and keep 3 things in mind.
Make it Bold, Make it Detailed and Make it Specific.
Your customers, your sales and your bank account with thank you for it. 🙂
I hope you enjoyed reading the article. Please let me know what you think in the comments below. Let me know what kind of guarantee you have in place and if you saw an increase or decrease in sales.