Are you losing business? Learn what you can do to sway potential customers who are on the fence.
You may be losing a lot of business without knowing it. It happens every time a potential customer decides not to buy from you because they may not get all they expect from your product or service. You can save much of this lost business by reversing that risk. One way to reverse the risk is to guarantee every claim you make. For example, tell your prospects:
“If for any reason (product or service) doesn’t deliver every claim or promise we made, we’ll refund 100% of what you paid.”
You’ll be amazed at how much more business you’ll get with this simple guarantee. Reversing the risk breaks down your customer’s resistance and instills confidence that your claims must be true. It enhances your credibility because you certainly wouldn’t guarantee a full refund if your product or service didn’t deliver as promised.
Maybe you’re reluctant to provide a money back guarantee because you’re afraid some people may take unfair advantage of it. I’ve learned by experience that you don’t have to worry about refunds if you offer a quality product or service at a fair price. The buyers who take advantage of a money back guarantee represent only a tiny percentage of the total increased business generated by the guarantee.
MAKE YOUR OFFER BETTER THAN RISK FREE
Did you ever decide to buy something then change your mind at the last minute? Maybe you even had your checkbook or credit card out but stopped at the very last second. Some of your potential customers do this. You can convert many of these “almost sales” into customers by offering a guarantee enhanced with a bonus. TV informercials use this technique all the time. You can copy it to increase sales in your business.
To use this technique, add something extra to your offer as a bonus and tie it into your guarantee. If your customer is dissatisfied and uses your guarantee, he or she can return the product or cancel the service and get a full refund. But, they don’t have to return the bonus item. Now your offer is better than risk free. This “free bonus you can keep” motivates many “almost buyers” to take action and become customers.
Sometimes you can offer a guarantee your customer automatically gets from somebody else. It may be a guarantee from the manufacturer or even a legally required guarantee. For example, most states require life insurance companies to refund 100% of the premiums paid when a policy is returned within 10 days after delivery. Many insurance agents persuade prospective buyers to submit an application with the premium payment based on this guarantee. This is a good example of a guarantee provided by somebody else (government regulators). It’s also an excellent example of reversing the risk from the buyer to the seller.
REVERSING THE RISK FOR A SERVICE BUSINESS
Removing the risk by providing a money back guarantee works well when a product is involved. But, how do you provide a guarantee when the transaction involves a service? Your customer can’t return yesterday’s plumbing job. The work was already performed.
Instead of offering a money back guarantee, a service business can provide a guarantee to solve the customer’s problem. For example, our plumber in the example above can guarantee to come back without charge as often as necessary to stop the leak. A landscaper can replace without charge any plants that don’t survive for at least 6 months. A sales consultant can continue working without charge until the promised sales results are achieved.
REVERSING THE RISK FOR A BUSINESS OPPORTUNITY
Nobody can guarantee someone else’s success in operating a business. But, there are some things you can do to lower the buyer’s risk.
If you offer a MLM/Network Marketing business opportunity, your company is responsible for any guarantees involving their products or services. However, you can lower the business risk for your new distributors by offering support in sales and recruiting. For example, you can:
* Provide free prospect leads.
* Recruit their first few distributors.
* Conduct 3-way conference calls to help persuade their prospects to sign up.
* Provide free recruiting postcards.
Any sales or recruiting support you offer reduces the business risk and convinces more people to sign up under you.
Start thinking about some of the things you can do in your business to reverse the risk for your potential customers and clients. Then implement them and watch how fast your sales and profits increase.
Bob Leduc ©1998