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Why You Should Offer A Guarantee

We’re going away in a couple of weeks.

 

Although my kids are all in their twenties with busy lives they all still come which I absolutely love.

 

One thing I don’t love is sorting out travel insurance.

Airplane in the sky

You go on the comparison sites, where the prices vary dramatically.

 

Does anyone actually read the small print of the policies to really understand the details of their cover.

 

I doubt it.

 

But we all continue to take travel insurance because it gives us peace of mind and takes away the risk in case something bad happens.

 

You need to do the same in your business.

 

The fact is there’s always a risk when you buy something or use a new supplier that it or they won’t be as good as you hoped and that it won’t fulfil your needs.

 

The fear that it’s too risky often stops us from buying.

 

So for you to maximise your sales opportunities, you need to take away the risk so that potential customers know that if the product or service doesn’t live up to expectations, they can get their money back.

 

You do this by offering a guarantee.

Guarantee

Guarantees can take many forms.

 

The classic guarantee is the money back offer – if you’re unhappy we’ll give you all your money back.

 

Interestingly if you offer a 12-month money back guarantee, you’re less likely to have people claiming against it than if you offer a 30-day guarantee.

 

Sounds counter intuitive but it’s true.

 

Another variant is “The Total Satisfaction Guarantee” where if there’s any aspect of the service that customers aren’t delighted with, you will do whatever it takes to rectify the situation.

 

If you don’t think your business can make a guarantee, get creative.

 

Removing the risk for your customers leads to high sales and the fact is that people very rarely claim.

 

Some examples of guarantees I’ve created for clients:

 

  • A removals company guaranteed to turn up on the day agreed (people are terrified that removals companies will let them down on the day)
  • A personal trainer guaranteed that customers would be happy with the session
  • An accountant guaranteed that all statutory deadlines would be met
  • A printer guaranteed to deliver on the agreed date

 

I guarantee that if you’re not happy with what I’m doing within the first 30 days of us working together, then I won’t charge you.

 

Starting to work with me is therefore entirely risk-free. Give it a go – if you’re not happy then you’ve lost nothing.

 

I’m glad to say that no one has ever claimed against the guarantee.

 

If you need help working out what you can guarantee, get in touch on mikejennings@bda.me.uk, call me on 01483 200387.