10 Ways to “Guarantee” More Sales and Conversions
All businesses exist for one sole purpose – generating revenue. If your business is not generating revenue, then you have no business being in business.
Well, here’s the thing.
To generate revenue, you need to attract leads, and then convert these leads into customers.
This is why business owners spend lots of time and effort doing things such as setting up and optimizing their sales funnel, performing A/B tests, optimizing their page design, creating compelling copy for their landing pages and squeeze pages, optimizing call to action buttons, getting testimonials from previous customers, and so on.
All this is done in a bid to improve the conversion rate.
While all the above tactics can help boost your conversion rate, there is only one thing that truly matters when it comes to converting a lead into a paying customer.
Before a customer decides to buy, they want a guarantee that they will get what they expected after making the purchase.
The customer’s expectation depends on the customer and what you are selling.
For some, they expect that the purchase will allow them to achieve certain results.
Others expect that the purchase will make them happy, and yet others expect to get gratification from the purchase.
However, they all want to avoid one thing – feeling regret after making the purchase.
Most customers will never make a purchase if there is a chance that they might end up regretting the purchase.
Sure, you know that you are selling a great product or service and that your customers are unlikely to regret making the purchase.
However, there is one problem.
Your prospective customers don’t know that. You have to convince them that they will not regret making the purchase.
If you can do that, most customers won’t have a problem giving you their money. Question is, how do you do that?
The key to convincing prospective customers that they won’t regret making a purchase is to give them guarantees that silence their doubts and get them to trust you.
In this article, let’s take a look at 10 awesome guarantees that you can use to increase customers’ trust in your products and services and thereby guarantee yourself more sales and conversions.
Below are some of the most commonly used customer guarantees:
1. The Money Back Guarantee
You have probably heard about the money back guarantee, because it is the most commonly used kind of customer guarantee. It has even gotten to a point where most customers view the money back guarantee as a right, rather than a benefit.
The money back guarantee is not a new thing.
The earliest documented version of the money back guarantee happened back in 1868 and was introduced by one J. R. Watkins.
Watkins was a door-to-door salesman selling home-cooked natural remedies.
At the time, his product was virtually unknown in the market place, and customers were reluctant to spend their money on a product they didn’t know, and were not even sure if it worked.
To allay his customers’ fears, Watkins offered a full refund if they did not like the product.
Many people ended up buying the product, and his approach became such a huge success that his products are still on sale today.
Ever since then, millions of business owners have used the same approach to reduce customers’ perceived risk of their products.
The money back guarantee has a number of advantages. First, it gets new customers to try a product. This is very important, especially when your product or service is still new in the market.
After all, if they don’t like your product, they know that they’ll get their money back. They won’t have lost their money on a useless product.
Second, the fact that you are offering a 100% money back guarantee gives credibility to your product or service.
It shows that you have so much trust in your product or service that you are willing to stand behind it with a full refund.
This perception of credibility is even more powerful than the potential for customers to get their money back.
What’s more, if you have a really great product, only a handful of customers will ever need to invoke the money back guarantee.
Before using the money back guarantee, you should make sure that your product is as great as you claim, and that you have a system in place to handle any complaints that come in.
If you offer a money back guarantee, but then make it excruciatingly difficult for customers to get a refund, this could do great damage to your brand.
2. Risk Free Guarantee
The risk free guarantee is almost similar to the money back guarantee, but they apply in different contexts.
The risk free guarantee works best with products and services that have a high cost, products and services with wonderful but unproven claims, as well as products and services that require recurring billings. The risk free guarantee is commonly referred to as free trials.
With the risk free guarantee, you give the prospective customers a chance to try out the product before they commit to buying.
They do not even have to give you their money upfront, which means there is absolutely no risk to them.
If they don’t like the product, they can just walk away. If they like it, they can then go ahead to make the purchase.
This pushes a prospective customer from considering a product or service to actually giving it a try.
3. 100% Satisfaction Guarantee
The 100% satisfaction guarantee is a more recent approach to customer guarantees, and it combines aspects of both the money back and the risk free guarantees.
With the 100% satisfaction guarantee, rather than simply promising to refund a customer or giving them a risk free chance to try out your product, you create a win-win situation by giving them an offer that is beneficial to the customer and to your business.
With the 100% satisfaction guarantee, you are promising that you will do everything within your means to make sure that the customer is happy with their purchase.
This means that, in the event that your customer is not satisfied with the purchase, you get another chance to salvage the sale by either giving them a replacement or upselling something else to them.
From the customer’s point of view, not only does the 100% satisfaction guarantee reduce their risk, it also ensures that they will get the result they expected when making the purchase.
By guaranteeing their satisfaction, you are in effect assuring them that the customer that they will not regret the purchase.
For Inkd, the 100% satisfaction guarantee means that they will continue working on a client’s logo until they get it right and the client is satisfied.
For the Hampton Inn, guests who are dissatisfied with the experience do not have to pay a thing.
However, owing to the quality of their overnight experience, only a handful of guests ever invoke this guarantee.
What’s more, the feedback given by such clients helps the hotels provide an even better experience.
4. The Forever Guarantee
Also referred to as a lifetime warranty, the forever guarantee is one of the greatest approaches to silencing your customers’ objections and doubts about buying your products.
With a forever guarantee, you are basically making a promise to the customer that they will never need to buy another product to perform the same task again in their life.
For instance, if a TV manufacturer gives you a forever guarantee, it means that they trust that their TV will never get damaged, and are willing to give you a replacement in case it ever gets damaged – not within one, five, or ten years.
With such a guarantee, would you buy a TV anywhere else?
If you buy a product from a company that offers a forever guarantee, the company will always fix the product for you whenever it gets damaged, and in the event that they are unable to do that, they’ll give you a replacement.
One of the greatest benefits of offering a forever guarantee is that is instills great trust in the customer.
You are essentially telling your customers that you have so much trust in your product that you are willing to give them a free replacement if it ever gets damaged.
This lets the customer know that they are not on their own in case they actually find something wrong with your product.
Before offering a forever guarantee, however, you should make sure that you have a product that is so good that it will never need to be replaced.
If you offer a lifetime guarantee with a low quality product, a significant chunk of your revenue will go to issuing replacements.
To avoid having unscrupulous people abusing the forever warranty, you can put some limitations in the lifetime warranty policy.
5. Low Price Guarantee
Customers don’t like getting ripped off. They want to know that they got an item for the lowest price possible.
This means that customers will find a product they are looking for but still continue looking since they are trying to find a lower price.
If they do not find the item for a lower price, but find the item for a similar price as yours elsewhere, they will probably buy from there, because there’s no point in coming back to your shop when the price is similar.
You can prevent such customers from walking away to look elsewhere by offering a low price guarantee.
With a low price guarantee, you are basically guaranteeing the customers that what you are offering is the lowest price they are going to find for the product.
If the customer finds the item on sale at another establishment for a lower price, you promise to give the customer a refund of the difference.
In most cases, the low price guarantee comes with a time limit, which is usually about 30 days.
This means that if the customer is able to get a lower price within 30 days, they will get a refund of the difference in price. However, no refunds are offered once the time limit has elapsed.
6. Free Versus Paid Versions
The freemium business model has become so popular today that it has become a basic customer expectation. You will notice that a lot of companies such as Dropbox, Spotify, CloudApp, Mailchimp, and Evernote are using this model.
With the freemium business model, businesses create a free and a premium or paid version of their product or service (the term freemium is a mashup of the words free and premium).
The free version is free for anyone to use, usually for an unlimited time.
However, this version does not give access to all of the product or service’s features.
To get access to these features, users have to upgrade to the paid version.
The image below shows how the freemium model is applied by some popular companies.
Remember, we saw that customers will avoid making a purchase if they think that they might end up regretting the purchase. With the freemium model, you give the customer a chance to experience your product or service without any pressure to buy.
The idea here is that the free version will provide enough value for the customer that they will be spurred to upgrade to the premium version to take advantage of all your product’s features.
Since the customer has already seen what the free version of your product can do, they are unlikely to regret paying for the full version which gives them access to more advanced features (in most cases, free users can see these features, but do not have the ability to access them).
The freemium model is the number one driver of growth in revenue for mobile apps.
OUT OF THE BOX GUARANTEES
The guarantees we have looked at above are quite popular.
You have probably encountered them severally. However, they are not the only customer guarantees.
Some businesses are taking an unorthodox approach to quell customer doubts and guarantee more sales and conversions. Some out of the box customer guarantees include:
7. The Extreme Guarantee
It is impossible to talk about customer guarantees without talking about Zappos. The shoe company offers a “Free shipping, free returns, free 365 day return” guarantee.
This means that if you purchase some shoes from Zappos but then realize that you do not like the shoes, you can send them back for a full refund.
What’s even crazier is that you can hold onto the shoes for a whole year before deciding to return them back.
On top of that, you don’t even have to cover for the costs of return shipping. Zappos does all that for you.
As far as customer guarantees go, this is extreme as it can get. Sometimes, Zappos will even take back slightly worn shoes.
Sure, they might not be able to resell these shoes, but on the flip side, this customer will probably remain loyal to Zappos for life.
This extreme return policy has helped turn Zappos into one of the most popular online shoe and clothing retailer, with over $1 billion in sales per year.
You can use a similar guarantee if you have products that people need to experience or test before making the purchase.
However, if you are going to offer such a guarantee, it is advisable to put some limitations to the guarantee to prevent people from abusing it.
8. Free Access To Competitor’s Product Guarantee
Imagine you want to purchase a product or a service, but you are not sure whether it is the right one for you, or whether it will help you achieve the results you are looking for.
As you are scrolling through the internet, you come across someone who is selling exactly what you are looking for.
Someone about their guarantee catches your attention.
This company promises that if you buy the product for them, they guarantee you that you will achieve the results you are looking for.
If you don’t see the expected results after a specified amount of time, not only will they give you a full refund, but they will also allow you to choose the competitor whose product you want to try next and buy the product for you.
With such a guarantee, would you buy the product elsewhere? Highly unlikely.
Such a guarantee shows that the seller is highly confident in whatever they are selling.
Not only do they know that their products deliver results, they also know that they do it better than their competitors.
If you have such confidence in your products or services, you can give this guarantee a try.
9. The Double Guarantee
We have already seen that giving a guarantee is the best way to put to rest customer doubts and build trust in your products.
Well, what if you took it a notch higher and offered not one, but two guarantees combined together?
This kind of guarantee works especially well with information products.
For instance, you could combine the money back guarantee and the 100% satisfaction guarantee. Here’s how this would work:
With the first guarantee, you give the customer a chance to examine your product and ascertain that it is actually worth their time and attention.
For instance, if you are selling a training course, this guarantee allows them to take a look at the contents of the course and confirm if they think what is contained in the course will help them.
If the customer feels that the contents of your course will not be helpful to them, they can ask for a refund. This guarantee will typically come with a time limit.
Sometimes, a customer might look at the contents of a training course and assume that what is contained in the course will help them, only to realize that the training does not work after they start putting it into practice.
To allay such fears, you can offer a second guarantee that if the client puts into practice everything taught within your course and does not achieve the expected results, you’ll refund them two times the cost of your training course for wasting their time.
With such a double guarantee, you are basically letting the customer know that there’s no way they will regret making the purchase.
To make such a guarantee, however, you need to make sure that your product is 100% effective in delivering results.
10. The Million Dollar Service Guarantee
If a Lifelock customer finds themselves as a victim of identity theft due to a defect or failure on the part of Lifelock, Lifelock reimburses such a customer any funds stolen as a direct result of the identity theft up to a limit of $1 million.
In addition, if you need to hire lawyers, investigators, or other experts as part of dealing with the identity theft, Lifelock covers these costs up to a limit of $1 million. With such a guarantee, would you have any doubts about purchasing their services?
Offering such a guarantee can be a great way of increasing your customers’ trust in your products or services. Of course, you don’t have to offer a $1 million guarantee like Lifelock.
You can adjust the amount to match your products or services and what they are supposed to do for your customers.
Before offering such a guarantee, make sure that your product or service is so good that most customers won’t have to invoke this guarantee.
Before making a purchase, every customer wants the assurance that they are not going to regret making the purchase.
If you can give customers this assurance, you will no doubt see more sales and conversions. Giving guarantees to your customers is the perfect way to do this.
If you haven’t been using customer guarantees on your business, consider offering one of the 10 guarantees covered in this article and let us know how it impacts your business.
If none of this suits your business, you can get more creative and come up with your own special guarantee that will put your customers’ minds at ease as they purchase from you.