The Power of Guarantees
Graham Winmill - 23rd October 2008
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Guarantees are one of The Most Powerful ways to grow the
profits of any business
Guarantees are quite simply, one of the most
powerful marketing methods available and one of the easiest
ways to grow the profits of any business.
I
would go as far as to say that if you are selling anything
through advertising, direct mail or the internet and you're NOT
using powerful gurantees, you are loosing a serious amount of
money.
Here
are some strategies that guarantee success with
guarantees.
1. Extend the Guarantee if you can.
I know of one mail order company that was selling a product for
£10 with a 30 day gurantee. They were getting 5% returns. When
they changed it to a lifetime guarantee, returns slowed to a
trickle because there was suddenly no preasure to make a
decision within 30 days.
2. Make it clear what the Guarantee
is. Make sure you spell out what it is in plain
english. State for instance, whether post & packaging is
included or not.
3. Put your Guarantee
everywhere. Not just as a specific block of text in
one place but work it into appropriate text as well, eg. "it
can be 3 to 4 weeks before you really start to see the benefits
of our XYZ's which is why we offer a full six month money back
guarantee".
4. Avoid "... or your money back" in
the headline. The problem with this kind of headline
is that it creates doubt that the product will not work. Would
you want to buy a product with a 50% success rate? Probally
not. People do not want to have their time wasted. Far better
in this kind of instance to make the claims about the product
and then indicate that it can be returned for a full refund if
you really are unhappy with it for any reason.
5. Consider your Guarantee into your
USP. Because guarantees are so powerful, it's worth
considering making it your key selling proposition. You can do
this by making the guarantee the main headling in your ad,
website copy, email or direct mail.
6. Don't fear Guarantees.
Most business owners don't tap the profit potential of
guarantees because they're scared that a hugh proportion of
customers will rip them off and ask for their money back. All I
can tell you is that in my experience of using them extensively
myself - I have never seen it happen. Never.
7. Don't hide your
Guarantees. Sometimes people take the step of having a
guarantee but then hide it away in the copy (for the fear
reason above). Be loud and proud with your guarantees. Use
every opportunity to tell your customer that you guarantee what
you sell.
As with all marketing you need to test
guarantees to see which type will work best for you. The key
step is to get started - Today. That's
all, now get back to work.
Graham Winmill AInstIB
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