How a guarantee can help increase sales
Offering a guarantee has many benefits, most important of which is an increase in sales and leads. So why are guarantees so effective? And should you be offering one?
Sales success has a lot to do with good marketing, and one marketing tool that can get people across the line is the humble guarantee.
Benefits of a guarantee
A guarantee instils trust and confidence in your customer: When you offer a guarantee you’re effectively saying, “I am 100 per cent confident in my products and services.” Customers feel this confidence and are more likely to open up their wallets.
A guarantee reduces risk: Your prospects don’t want to risk wasting their time or money, which makes a guarantee ideal because it reduces the overall risk of doing business with you. When the risks are reduced, so too are the reasons for not doing business with you.
"When you offer a guarantee you’re effectively saying, 'I am 100 per cent confident in my products and services.' Customers feel this confidence and are more likely to open up their wallets. "
A guarantee is a ‘scale-tipper’: If a prospect is choosing between two businesses that offer similar products and services, then the business that offers a guarantee will likely be the favourite. After all, the guarantee-based business presents the risk-free option.
How to word a guarantee
Guarantees come in all shapes and sizes. Some can be short and snappy while others can be longer with more conditions. Your guarantee could be as simple as: “Not happy? Get a refund.” Or it could be a bit more detailed, such as: “If you’re not 100 per cent happy with our services, we will refund your deposit.”
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But won’t people take advantage of a guarantee?
This can happen, but to minimise any negative impact it’s important to weigh up whether the positive results that will come from your guarantee (i.e. more sales) will outweigh the possible negatives outcomes (such as refunding money occasionally). Do this before you publicise your guarantee.
How to minimise your risk
- Ensure that your products and services do exactly what you say they will.
- Be clear about exactly what you are guaranteeing. (For complicated products and services, consider referring people to your Terms and Conditions, or have a legal professional advise you on the wording of your guarantee.)
- Don’t take on work if you know you won’t be able to offer your highest standards.
- Don’t assume that you have to refund money; you can guarantee other things. For example: “We guarantee that we’ll work on your project until you’re 100 per cent happy, no matter how many revisions it takes.”
Examples of guarantees:
- We guarantee that we’ll turn up on time or you’ll get your plumbing service for free.
- We guarantee that you’ll receive an email within 24 hours or else you’ll receive $100 off any future project.
- Price guarantee: If you find a cheaper price on a stocked item we’ll beat it by 10 per cent.
If you don’t already offer a guarantee, should you?
If you feel 100 per cent confident in your products and services, why not consider trialling a guarantee? If it works out, consider offering one permanently so that it increases customer confidence, and in turn, your sales.
Do you offer a guarantee and does it increase sales? Or are you wary of offering one?