Why don’t people buy from you?
If I asked 100 business owners this question, I would probably get 100 different answers. But there is one common response that I want to focus on here. And that’s fear.
Fear of what?
First-time customers or clients may have any number of legitimate fears, including:
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- They are paying too much.
- The product/service is of poor quality.
- The product/service will not meet their expectations.
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If you have ever taken a class, course, or workshop on selling, you will no doubt be familiar with the Know-Like-Trust Principle.
Simply stated, we all prefer to do business with those whom we know, like, and trust. If this is true, then how do you convince someone to buy from you if they don’t know you? Your challenge as a small business owner is to find the best way to reduce – or even eliminate – the element of risk that creates the fear in their minds.
One way to do this is the money back guarantee.
I like to think of the money back guarantee as a customer-satisfaction guarantee. The seller promises – in writing – to refund the buyer’s money if the product or service doesn’t live up to their expectations. This lets prospects who are shopping around for what you offer know that you have confidence in your product/service and that you will stand behind it.
Define What Your Guarantee Actually Guarantees
If you are going to use this approach, keep in mind that you need to be very definitive about what you are guaranteeing. Many companies simply say, “Satisfaction guaranteed or your money back,” or “You must be satisfied or we will return all of your money”. These are wishy-washy statements that can be subject to interpretation.
Take the time to develop a clear and specific statement, such as:
“If our product/service does not perform as you expected within the next 30 days, simply return it and we will refund your full purchase price.”
Leveraging the Benefits of the Guarantee for Your Business
The money-back guarantee is an old-school sales tactic. The fact that it has withstood the test of time is an indication of how successful it has been for companies who have put it to good use. Of course, it opens the door for an increased number of product returns or service refunds. And for dishonest people to take advantage. But many more people will buy your product/service because you have eliminated their fear. By proving your company’s reliability and integrity, you will also have earned their trust – and chances are, their business.
