Risk Reversals -
How to Get More Sales by
Offering a Guarantee
by
Peter Geisheker,
CEO, The Geisheker Group, Inc. (920) 592-9595
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One
of the most powerful marketing strategies you can use to
instantly increase sales is a strong guarantee. The
reason why a guarantee is such a powerful sales tool is
that it eliminates the risk a customer faces when doing
business with you. It is like giving your customer an
insurance policy to protect them against shoddy products
or services.
Think about it. One of the leading reasons why people
choose NOT to buy a product or service is they are
worried that if the product or service sucks, they are
going to lose their money and they will feel like a fool
for buying it. And nobody wants to feel like a fool. |
Here is an example
of the power of a money back guarantee for a product. Let’s say
you want to buy a puppy for your kids. Pet store “A” has several
very cute puppies and they cost $250 each. Unfortunately, if you
buy a puppy from pet store “A” and it turns out the puppy is
sick or has a disease, it is your problem. All sales are final.
No refunds or exchanges. On the other hand, pet store “B” offer
several cute puppies and they offer a full money-back guarantee
that states, “Take your new puppy to a veterinarian within the
next 14 days and if it is sick or has a disease, you can return
it and pick out a different puppy or you can have a full
refund.” Now which pet store would you prefer to do business
with? Pet store “A” where all sales are final or pet store “B”
where you are protected? The obvious choice is pet store “B”.
Pet store B is going to get the most business and will easily
dominate sales over pet store B, especially if pet store “B” is
smart enough to include their strong money-back guarantee in all
of their advertising.
A strong money-back guarantee is also an incredibly powerful
sales tool in the service industry. For example, let’s say you
own a small business and you have several computers. Now
computers being computers, from time to time they will have
problems and you will need a computer technician to fix them. To
find a computer technician, you go to the yellow pages in your
phone book. There you see two ads for computer service
companies. You read advertisement “A” and the company looks
good, they have been in business for 5 years, they have a
friendly staff, blah, blah, blah. Then you read advertisement
“B”. In this ad you read that all parts and service come with a
90-day guarantee. If your computer has the same problem within
90 days after they fix it, they will come back to your office
and fix it for free. Now, which company are you going to
call—the company that offers no guarantee or the company that
protects you with a strong guarantee? The choice is obvious.
If you want to instantly increase your sales, offer a strong
guarantee and display it in all of your advertising. If your
competition offers a guarantee, do everything you can to make
your guarantee stronger.
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If you need help
creating a marketing program to determine the precise strategies
you should be using to market your company, or you need help
developing marketing materials such as a brochure, a press
release, sales copy for your website, a display ad, or a sales
letter for a direct mail piece, please call (920) 592-9595 or
email us. We would love to help you improve your marketing.
To view all of the different marketing services we provide,
please visit
http://www.marketing-consulting-company.com.
To Your Success!
Peter Geisheker
President and CEO
The
Geisheker Group Marketing Company
"Innovative Marketing for Innovative Companies"
(920) 592-9595
Fax: (920) 491-9090
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