Have you ever bought something because of its excellent guarantee?
I bet you have. Last year I was particularly compelled by Casper – a company offering you their mattress for 100 nights - if you don’t like it, the company sends someone to pick it up, and you receive a full refund.
With that kind of offer, it seems stupid NOT to order their mattress. This kind of guarantee is what New York Times bestselling author Ramit Sethi calls "risk reversal."
Risk reversal is the feature you offer to diminish your customers’ fears, and get them to commit to purchase/conversion/subscription.
Risk reversal takes many forms across different industries. Businesses might offer free returns, free shipping, a lifetime warranty, a risk-free trial, a free product, or a 30 day money back guarantee. The only constant is that the offer soothes a concern of the consumer.
If your product is strong, the implementation of a risk reversal is worth the reward.
Think of it this way: if you offer a 30 day money back guarantee, and that promise encourages an additional 50 people to purchase your product, even if two people ask for the refund – you’re still winning big!
If you aren’t currently using some form of risk reversal, first focus on potential fears of your customers. Then, brainstorm solutions.
Can you provide a lifetime warranty? Free returns? Free shipping? Satisfaction, guaranteed?
One important note: explain why you provide the risk reversal you do, and how valuable it is. Use your guarantee as a way to differentiate your business from your competitors.
I.e: “We aren’t going to lock you into a product you haven’t tried yet – that’s why we offer free returns. The thing is - we think the more time you spend with our product, the more you’ll love it.”
Have you been able to successfully implement a guarantee? Was the risk worth the reward?
Let us know!