Strategies to reduce risk for the customer so they don’t have to worry if the service/product did not work for them.
- Unconditional guarantees
- For any reason money back guarantee
- You can use this for customers that are hesitant to purchase not all customers
- This is a calculated risk as some will want their money back. But the idea is that you will get more customers to say yes to offset those who back out
- Conditional guarantees
- Terms and conditions to them
- FRAMEWORK = You don’t have to make a decision today. If you don’t achieve X in Y time we will…..
- i.e.
- If you go through the course and don’t achieve XX, I will give you 2X or 3X of the price of the course
- If you don’t achieve X by Y time, I will continue to work for you for free until you achieve X
- I will pay for airfare and hotel if you think the conference was not worth it
- Limit to customers who left day 1. If they stayed for the entire conference, then they will not get refunded
- Send us your taxes for last year and we will pay you per hour the time spend with us
- If you don’t achieve X by Y time, you can cancel the contract with no fees
- Until you don’t get into contract, you don’t have to pay for our services
- Anti-guarantees and performance
- Let the customer know why you don’t offer a money back guarantee. All sales are final and this is the reason why.
- i.e. once you see the information, you can’t unsee it. This makes it seem your product is more valuable.
- The performance guarantee
- If customer does achieve X, they don’t have to pay
- The customer in general has unlimited upside potential
- You have to make sure your product works
- Naming guarantees
- Be bold with your guarantees
- You can stack guarantees
- Ie. First 30 is unconditional and after 30 is conditional