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Secrets to Success
Deborah Cole Micek |
How to create
profit-boosting guarantees
How many times have you hesitated or decided against making a purchase because you were asked to carry all the risk?Even if you wanted that product or service badly, the risk of making a bad decision outweighs the potential pleasure you gain by making the purchase. That vendor's failure to recognize your need for certainty and security lost them a sale.
If you don't have a clearly written strongly worded guarantee for your services or products, I can guarantee you that you're losing sales, too.
By lifting the risk from your prospects shoulders and carrying it yourself, your sales proposition will become a much more enjoyable and welcoming experience. And as a reward, it's not unusual when companies start using a guarantee or "risk reversal" for them to double or even triple their sales.
For example in one of my previous companies we instituted a guarantee on design/build projects that was so clearly defined it moved our closing ratio from 45 percent to better than 80 percent. Plus, by linking a two-year extension on that same guarantee to services provided by one of our maintenance companies, we were able to add more than $24,000 in net profit without any marketing.
But as inviting as the rewards can be, there's sometimes fear and hesitation about putting a guarantee in writing. That's why right now I'm going to share three keys that will make creating a win-win guarantee an infinitely easier process.
» What's your competition doing about the risks and complaints of customers in your industry? Are they offering any type of guarantee? If they are, is it a nebulous risk reversal like "100 percent satisfaction guaranteed"? How can you improve on or surpass guarantees that your competitors are offering?
» Analyze your own business and determine what guarantee you can reliably deliver. The worst thing you can do for your business is to put a guarantee out there and then fail to execute on it.
Remember that when you remove the perceived risk of doing business with you, your company will seem much more appealing and embraceable. A well-crafted guarantee that holds your feet to the fire and guarantees specific results will inspire prospects to jump off the fence in your direction.
When formulating a guarantee, include the strongest pledge you can live up to, and stress in all your marketing, advertising, and sales.