Principle Number 3: Reverse The Risk

This is one concept that most business owners feel very uncomfortable about at first – but it is a principle that could double your business almost immediately.

Reversing the risk is offering your customers a satisfaction guarantee – if they are not completely satisfied they receive their money back, an extended warranty, or a replacement – whatever it is that will help your buyer overcome their initial hesitation.

An incredible amount of business owners are not willing to offer guarantees and stand by their product or service.

If you have a product or service that is of decent quality and renders a worthwhile service to your customers, you should offer a guarantee. If you are unwilling to stand by it, why are you in business?

By offering a guarantee, your proposition becomes so much more powerful and appealing to your customers. The outcome will be customers will feel more comfortable to do business with you – and, as a result, your sales will increase.

A guarantee can be in many forms. Here are some examples:

I offer a 100% Unconditional Money Back
Guarantee if you’re not satisfied

Don’t pay us a cent. We’ll personally deliver your widget.
You try it for a week and if it lives up to your expectations, send us payment then.

When you invest in my manual, I won’t cash your cheque
until 31 days after you’ve received it. If you’re unhappy with
it before the 31 days, return it and I’ll send back your uncashed cheque.

Try our amazing double your money back guarantee.
Yes, that’s right. If you return your widget I’ll give you back
your $100 plus an extra $100 for the inconvenience. I couldn’t be fairer.

A few customers will take advantage of your guarantee. That is, returning the product unethically. Don’t worry about it though. A lot more customers are going to purchase in the first instance because of the guarantee. More important is your net result -an increase in your profits.

Also, genuine returns can turn into a sales opportunity. You have to understand, if a customer asks for a refund they are not happy. This is a chance for you to fix the problem and offer them a higher level of customer service.

Here is an example. There was a very successful, high-level photocopier salesperson. He had a practice, which may sound manipulative, but was very effective. Whenever he sold a copier to a client, he would purposely orchestrate a problem. Either the copier wouldn’t work or there would be a delay with delivery.

When the customer complained, this salesperson used the complaint to solidify the goodwill he had attained. He offered the customer a number of extra service ‘perks’ as apology. He created the impression of going considerably out of his way to fix the problem. This reflected positively on him and his company.

You see, it’s not the complaints that are necessarily bad. It’s how you handle them. Remember this always. Take advantage of complaints and you will profit.
 

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Tags: advertising, direct response marketing, marketing, principle number 3, Reverse the risk, risk reversal