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The Power of Guarantees
Graham Winmill - 23rd October 2008
  • 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

Stuarts Green Consulting
Tel: 01562 887590
Mobile: 07956 375572
email : 

www.stuartsgreen.co.uk
www.iib.ws

 

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