BY AMIT MITTAL, Business Coach, Consulting & Advisory
As discussed in our previous blog, niche stands on six pillars. We have previously covered two of them: Acquisition cost and Five Ways, and now we will discuss Guarantee.
Now it’s time to make the most out of every opportunity once you get people through your door.
“You must turn those prospects into sales.”
One thing that all businesses have in common is GUARANTEE. Several studies showed that selling with a money-back guarantee increases sales as customers take it as assurance for high product quality. Regardless of what many businesses believe, a guarantee is more than a promise to return the customer’s money.
The question that arises here is why do you need a Guarantee?
It is because customers are afraid of three things:
- Not being satisfied with the product they bought
- Worried about the durability of the product
- Losing money due to high upkeep cost
In other words, a customer is worried about making the wrong decision and then not being able to recoup what they spent. And this leads to inertia. Here is when Guarantee comes in, addressing the customer’s key dissatisfactions in buying from you. This is one great way to overcome that inertia which will help to eliminate the risk (or at least considerably decrease it).
The right guarantee builds relationships with your customers and inspires trust. It’s much more than a return policy with strings attached. The guarantee is possibly the strongest sales tool anyone can leverage. It tells the prospects that you stand behind and believe in your product. The guarantee is also the last final push to make a sale. By removing the risk to buyers through guarantees, a business will stand out. It makes it easy and fun for people to buy and profits will dramatically increase.
A great example of guarantee inaction is pizza delivery giant, Domino’s Pizza.
Pizza delivered fresh in 30 minutes or it’s free
This has saved Domino’s Pizza so it could become the multimillion-dollar franchise we know of today. While this guarantee worked fantastically at that time, you might know that since then Dominos has changed their guarantee again. It now says
If you are not completely satisfied with your Domino’s Pizza experience, we will make it right or refund your money.
This is how the power of the right guarantee works. How you frame and offer a guarantee can have a dramatic impact on your conversion rates, too. It converts potential buyers into paying customers.
So you can always go beyond generic money-back guarantees and reassure your potential customers better.
You can Guarantee the following depending upon your product.
8. The Money-back Guarantee
9. 100% Satisfaction Guarantee
A strong guarantee makes it less threatening for people to consider the offer. You lower the barriers that prevent people from doing business. It gives them a compelling reason to buy today without the fear of looking bad tomorrow.
Now the question arises how you will identify the guarantee for your product?
For this, you need to first survey the market and look around what kind of guarantee your competitors are providing and how successful they are in it. Also, identify what they do uniquely and poorly. Find out what can’t your competitor guarantee and what can they do that you can’t? Recognize the difference you can make to be ahead of them.
Distinguish yourself so that your customers and prospects can describe you as…
“Oh, you’re the guys who…”
Understanding your customer’s perspective will help you to accurately measure the feeling of your marketplace.
Spot out one thing that the customers are afraid of when buying from you and guarantee that this will not be a problem. For example, a Cake Shop that says, “You will cut our cake on your birthday and so will 98% of your friends on their birthday,” or a dentist who guarantees “no pain?” If it is, then make sure to refund the money or put things right.
You could give the guarantee for the Customer Service that could be (24×7), Technology,
Product Quality, and Sales & Marketing. For example, LG is providing 10 years guarantee on a Compressor.
We have to make our guarantee as clear and interesting as possible so that it can minimize the visitors’ concerns about making a purchase. This means more sales and happier customers. Once you have finalized the Guarantee make sure you tell people and advertise it.
However, be careful about what you’re promising. Offering a lifetime guarantee on disposable products could quickly take its toll on your balance sheet.
Do not use guarantees as empty promises, but rather as an encouragement to do better.
We at MADASKY, business coaching believe the problems and the solutions go hand in hand, while there is a problem, a solution is a hope that is available and accessible in abundance to all who need it. Once you have selected the strategies for your business, we will work on implementing them together and Testing and Measuring the results. Our objective will be to reduce acquisition costs and increase the lifetime values of your “A” grade clients to your business.
Reach out to us and we will help you to overcome your business challenges and grow.
MADASKY Consulting, Business Coaching, Consulting & Advising.
Visit us: www.madasky.com
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