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Marketing isn’t always easy. Buyers perceive many potential risks when they’re making a purchase. They worry that they’re making the wrong decision or that they’ll lose money through the purchase. Or maybe they’re anxious that they won’t receive what they paid for or that they won’t be satisfied.
It’s a marketer’s responsibility, then, to help prospective buyers move past those concerns to actually make a purchase. One very common strategy that business owners employ is to offer a rock-solid guarantee that makes a purchase risk-free (or at least greatly reduces the risk).
A strong guarantee, whether that’s a money-back guarantee or a satisfaction guarantee, can give a customer a compelling reason to make the purchase. Even though there is some inherent risk from offering a guarantee, many businesses find that marketing guarantees help drive customer satisfaction and increase their profits.
This guide walks through the specifics of what a good guarantee entails, how to create a solid one, and more.
Do marketing guarantees work?
A lot of business owners are tempted to shy away from offering strong guarantees because they fear that a bunch of customers will take them up on it, and they’ll lose money. But in reality, that’s false. Studies have actually shown that only 1-2% of customers will actually take a business up on their guarantee.
Concerned business owners can ask themselves the following questions:
- In the last month, how many customers have complained about the business’s products or services?
- How about during the last year?
- How many customers have asked for a replacement, a redo of the service, or their money back?
If a business is offering great quality (or even just mediocre and adequate service), odds are it doesn’t receive a lot of complaints. So odds are, it won’t need to make good on its guarantee very often. After all, humans are generally non-confrontational; they don’t usually want to make a big deal out of things unless they’re really dissatisfied. Of course, there are outliers; a few customers seem to get a thrill out of complaining to customer service, but most won’t complain.
Because of that, business owners can safely offer a smart guarantee to help drive more sales.
The Invisible Satisfaction Guarantee
Most business owners have a guarantee in place even if they don’t realize it. They just might not have the guarantee featured on their website or other marketing materials.
Look at it this way: if a customer calls and complains that the business’s work was unsatisfactory, what will most business owners do to make it right? Usually, they’ll replace the product or redo the work, even if it costs them time or money. They’ll do whatever it takes to make the customer happy. Most business owners won’t refuse to fulfill a reasonable request; that’s just good business.
Since most business owners already have a soft guarantee that they’re willing to offer for those who ask for it, there’s no reason they shouldn’t publicize that guarantee with their marketing efforts. For example, if a landscaping business owner values having the lowest price and they’re willing to give someone a better price if they get a quote from a competitor with a lower fee, they ought to advertise it. The same guarantee they keep quiet could actually help drive higher customer volume.
Whether or not a business owner advertises their guarantee, they should be committed to customer satisfaction. Here’s why: according to one study, a satisfied customer will tell one person about the business. But an unsatisfied customer usually vents to nine people about their experience. That’s nine potential customers driven away before the company’s marketing agency can even touch base.
But when the business honors its guarantee, it reduces the likelihood that the dissatisfied customer will talk negatively to other potential clients. That person might even turn from a critic into a fan thanks to the top-notch customer service.
Six Steps to Create a Rock-Solid Guarantee
Here’s a step-by-step method for creating a solid guarantee and using it to supercharge marketing efforts.
Analyze competitors’ money-back guarantees.
Market research is important, and some business owners don’t realize that it can include researching their competitors’ satisfaction guarantees. It can be helpful to look through competitors’ online stores, blog posts, and other marketing materials to see what their guarantees are like. An entrepreneur could even call up and ask what their guarantee is.
After that research is done, a business owner should look for patterns. What terms commonly occur in guarantees? Do these competitors promise specific results? A 60-day money-back guarantee? A free replacement if the product doesn’t work correctly for a set period of time? Or do competitors merely give a vague satisfaction guarantee?
Knowing what competitors are offering in their guarantees can help a business owner draft their own in a way that stands out.
Consider the business’s strengths.
What areas are the company’s strong points? Does the business do fast installations, or does it offer excellent maintenance? Do company representatives respond quickly to customer queries? Is the brand’s selection the best in the area? Are the company’s results consistently outstanding?
These distinguishing factors can help a business draft a guarantee that already matches what they’re doing well.
Guarantee results.
Vague satisfaction guarantees aren’t as helpful as guarantees that set specific, actionable standards. Clear promises give customers confidence that the business will stand by its promises. For example, “We promise you’ll be satisfied with your service, or you’ll get your money back” is positive, but it’s pretty abstract. But a specific promise, such as “Order by 1 p.m. (EST) and receive same-day shipping, and if we don’t meet that deadline, we’ll pay your shipping costs,” gives a customer a clear promise they can hold the brand to.
Here’s another example: suppose a local grocery store wants to compete with the chain down the street by having more competitive pricing. They might lose money if they promised to price match any competitor’s price on any product in the store, but perhaps they could agree to honor competitor coupons for specific items. That guarantee marketing is clear and specific, and odds are, the customer who walks in with a coupon for a certain number of competitor products will probably buy other items during the same visit.
Choose an enticing payback promise.
Remember, roughly 2% of customers will take a business up on its guarantee. But despite that low number, business owners should strive to create an attractive payback promise in case customers are unsatisfied.
The perfect guarantee doesn’t cost the business much but still has a high perceived value for customers. For example, a hassle-free, money-back guarantee is a good place to start. Since only 2% of customers might actually claim it, it won’t actually cost the business much.
Start small and track the results.
It’s a good idea for a business to try out different iterations of their guarantee and track how well it works before making it a permanent part of their marketing. For example, a business could offer a 30-day guarantee for a few months and then offer a 90-day guarantee for a different period, and then test how each worked to drive in customers. It could even test a lifetime guarantee. Usually, a longer guarantee period works better, but a little experimentation can help a company settle on the terms that serve it best.
Get the word out.
After a business owner has narrowed down the best guarantee that they’re comfortable with, it’s time to publicize it. It’s essential to put the full guarantee in writing on marketing materials like business cards, mailers, the company website, letterhead, brochures, and more. Business owners should also try to highlight hard guarantees that promise specific results; those tend to be more powerful. Specific guarantees help build trust and reduce customer skepticism.
Real-World Examples of Guarantees
Here are some clear examples of guarantees that make clear promises to customers. These include both hard, specific guarantees and “softer” ones that are more general, but still help instill customer confidence.
Guarantee #1 – The “Pay Off Your Debt Faster” Guarantee
“We have experienced counselors who help people like you every day to develop a comprehensive financial plan that results in paying off your debts faster than you ever could have on your own. In nearly every case, we’ll take years off your payment schedule allowing you to reach your financial goals sooner than expected.”
Guarantee #2 – The “Be Courteous and Understanding of Your Situation” Guarantee
“Our representatives are understanding and respectful of your situation and will talk with you on a human level. Many of our counselors were in the same position as you not long ago and so they intimately understand what you are going through and can empathize with your situation.”
Guarantee #3 – The “Pay You Money Back” Guarantee
“At Acme we have created an exclusive and unique incentive plan called the “Pay Off Your Debt” program. We promise that if you qualify for this program and make all your payments in full and on time for six months, you’ll received 50% of the “fair share” funds that we’ve collected on your behalf.”
Guarantee #4 – The “Simplify Your Debt Payment Effort” Guarantee
“We make bill paying ultra-simple. You’ll make only one simple payment to Acme and we’ll do all the dirty work of paying all your bills. We will stop all the creditor hassles, nagging phone calls, and bill collection letters by helping you consolidate your payments into one simple monthly payment.”
Guarantee #5 – The “Provide 24/7 Access to Payment History Information” Guarantee
“Our state-of-the-art telephone system allows you to access your payment information twenty-four hours a day, seven days a week. You’ll never be in the dark again about when your payments come in, when they go out, and any other payment information you need to know.”
Those five guarantees are pretty general guarantees that function well in the credit counseling industry. While not all of them make specific, trackable promises, they all help instill customer confidence.
Magic Words to Create Powerful Guarantees
Need a little inspiration to create a powerful guarantee? Here are a few power words and phrases that can add some zing to a guarantee:
- Take-It-To-The-Bank
- Better-Than-Risk-Free
- Unconditional, Money-Back Guarantee
- No Way to Lose
- 30-Day Free Examination
- No-Questions, No-Quibbles, Money-Back Guarantee
- Iron-Clad Money-Back Guarantee
- 100% On-The-Spot Full Refund
- 100%, no-hassle refund!
And those are just a few options out of thousands of possibilities that can be used for catchy guarantee wording.
Conclusion
A marketing guarantee can be a competitive advantage for any business in any industry as long as it’s done well. Unfortunately, many businesses skip using a guarantee because they’re too afraid of the perceived negative consequences. But smart business owners will take the time to test a few different guarantee options to find the approach that works best for their company, improving their likelihood of finding new leads and giving customers clear expectations.
Happy guaranteeing!
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
