The Cheque is in the Mail
by Andrew Shedden
There are a couple of current factors conspiring to make your life in the business world more challenging than ever.
The reputation of business is at an all time low
Anyone who hasn’t been living in a cave is well aware of the flagrant and stunning financial abuse that has been going on in the North American business environment. From Enron to World “Con” many executives have been cashing in stock options faster than their victimized shareholders can burn their increasingly worthless share certificates. While relatively few of you are running public companies you still are being tarred with the same brush that is coated in distrust.
The number of businesses competing for sales is at an all time high
The workforce is increasingly becoming that of a group of freelancers with specialized knowledge. Downsizing means record numbers of past employees are running with buyout packages firmly in hand and starting their own businesses. These newly minted entrepreneurs are hungry for new business and want their piece of the marketplace.
This means that now, more than ever, you need to ensure your company is utilizing every possible marketing advantage. One of the simplest, fastest, and most effective ways to quickly gain or maintain market share is to create, optimize, and promote risk reversal as a major component in your selling message.
Prospects want reassurance
One of the biggest reasons many prospects don’t make a purchase is the fear that they’ll make a mistake. Whenever a purchasing decision is made it is important to realize that buyers are the ones taking most or all of the risk. Buyers are the ones risking their money, putting their reputations on the line, risking ridicule from superiors, and potentially jeopardizing their careers.
Are you using your guarantee as a positive and powerful way of promoting your business? The simple way of looking at this is to make it easier for your prospect to say yes than it is to say no.
If you’re offering the same, boring, run of the mill guarantees being promoted by your competitors what does it say about your company? Remember that saying you’re just as good as a competitor means you’re really saying nothing.
Your guarantee must be used to bring peace of mind to nervous prospects. You know the old used car guarantee, “30 days or 30 feet, whichever comes first.” How about “No refunds after thirty days.” My personal favourite is “All sales are final.” All of the preceding guarantees and policies don’t bring great confidence to me when I’m contemplating a purchase.
How do you reverse the risk?
Remember that prospects are making a purchase not for product features but for product benefits. Prospects are after a specific desired outcome. Make sure you have correctly identified that desired outcome and then guarantee it.
I often tell clients that the shorter they make their guarantee the longer they’ll be in business. Try to minimize the weasel words in your guarantee:
Good: If at any time you aren’t totally delighted with your purchase we’ll refund your money
Not good: If you don’t like what you just bought and are willing to provide us with a note from three psychiatrists attesting to your mental competency and it’s a sunny Friday with incoming low cloud cover and your grandmother has just had twins and you’ve shot a Do Do bird within the last fortnight we might be able to help ya. Maybe.
An effective risk free guarantee offers a simple and reassuring message that completely eliminates the risk being taken by your client.
A more effective way to build your business is to offer an even better than risk free guarantee. For example you can offer a free report with the purchase of a training course and tell prospects they can keep the report even if they don’t attend the training course and receive a refund.
What about customers who try to abuse my guarantee?
This is the most common objection I hear from clients and is a real and legitimate concern. There will be a minute, infinitesimal, and tiny percentage of prospects who will take advantage of your guarantee. They will abuse the privilege and sorely test your time, patience, and perhaps your resources. Yet even in these obvious cases of dishonesty you’ll have to cheerfully honour your guarantee.
The sales and profits you gain by strengthening your guarantee will more than offset any additional costs you incur from illegitimate refunds.
Make sure to eliminate or greatly reduce the fine print in your guarantee. Promote your guarantee as part of your USP and publish it everywhere. For best marketing results make your guarantee an integral part of your selling message.
Risk reversal will make a positive difference to the bottom line of your business. You could say I guarantee it.
