Why a Guarantee Boosts Loyalty and Sales

The news about the potential for GM’s new electric car, Volt, to catch on fire has been everywhere, but one key lesson is being overlooked: the car company is offering to buy back the car from any dissatisfied customer. Wow! This is an extraordinary step for customer service and begets our discussion today on why you should have a guarantee too:

1. It Reduces The Risk Of Purchase -Prospects can easily and quickly become buyers if they know they can always return it and get their money back.
2. Demonstrates Your Own Belief In Your Product Or Service – It takes guts and confidence to offer a money-back guarantee; are you ready to do it?
3. Boosts The Trust Factor – By you taking on the risk vs. your customer with a guarantee, you move the relationship faster towards the trust and respect threshold – essential in any business relationship.

What kind of Guarantee Can You Offer?

1. A Simple Money-Back Guarantee – if you are not 100% satisfied, you refund the purchase price.

2. Time Limiter – Imposing a time limit: 30 or 60 days is common. For my books and audio products, I have a LIFETIME guarantee: If, in the course of my lifetime, you feel my products didn’t help your business, I will refund your money – no questions asked.

3. Performance Guarantee – If the service doesn’t double your revenue, for example.

What can you offer? I welcome your comments below.

2 Comments
  1. About that guarantee: I have told my prospective clients that, when the session is over, if they cannot find at least one image they are happy with, then they don’t pay me. Since 1973, I have only had that happen once near the beginning of my career.

    i think this stems from the fact that I love making people look better than they ever have before… in a photograph, and people react very positively to that effort. That, and that I have but one rule during a session: We will have a good time. If we are both having a good time, good pictures are created. If you are not having a good time (I always do – I love my work), then we find a way to change the atmosphere and perspective and start again.

  2. I’ve heard that offering a longer limit guarantee, say 1 year, allows your customers to be comfortable and more trusting. Have you had any experience with that Liz?

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