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How to Get More Sales by Offering a Guarantee

Guest post by: Peter Geisheker

Article Overview: One of the most powerful marketing strategies you can use to instantly increase sales is a strong guarantee. The reason why a guarantee is such a powerful sales tool is that it eliminates the risk a customer faces when doing business with you. It is like giving your customer an insurance policy to protect them against shoddy products or services.

How to Get More Sales by Offering a Guarantee

One of the most powerful marketing strategies you can use to instantly increase sales is a strong guarantee. The reason why a guarantee is such a powerful sales tool is that it eliminates the risk a customer faces when doing business with you. It is like giving your customer an insurance policy to protect them against shoddy products or services.

Think about it. One of the leading reasons why people choose NOT to buy a product or service is they are worried that if the product or service sucks, they are going to lose their money and they will feel like a fool for buying it. And nobody wants to feel like a fool.

Here is an example of the power of a money back guarantee for a product. Let’s say you want to buy a puppy for your kids. Pet store “A” has several very cute puppies and they cost $250 each. Unfortunately, if you buy a puppy from pet store “A” and it turns out the puppy is sick or has a disease, it is your problem. All sales are final. No refunds or exchanges. On the other hand, pet store “B” offer several cute puppies and they offer a full money-back guarantee that states, “Take your new puppy to a veterinarian within the next 14 days and if it is sick or has a disease, you can return it and pick out a different puppy or you can have a full refund.” Now which pet store would you prefer to do business with? Pet store “A” where all sales are final or pet store “B” where you are protected? The obvious choice is pet store “B”. Pet store B is going to get the most business and will easily dominate sales over pet store B, especially if pet store “B” is smart enough to include their strong money-back guarantee in all of their advertising.

A strong money-back guarantee is also an incredibly powerful sales tool in the service industry. For example, let’s say you own a small business and you have several computers. Now computers being computers, from time to time they will have problems and you will need a computer technician to fix them. To find a computer technician, you go to the yellow pages in your phone book. There you see two ads for computer service companies. You read advertisement “A” and the company looks good, they have been in business for 5 years, they have a friendly staff, blah, blah, blah. Then you read advertisement “B”. In this ad you read that all parts and service come with a 90-day guarantee. If your computer has the same problem within 90 days after they fix it, they will come back to your office and fix it for free. Now, which company are you going to call—the company that offers no guarantee or the company that protects you with a strong guarantee? The choice is obvious.

If you want to instantly increase your sales, offer a strong guarantee and display it in all of your advertising. If your competition offers a guarantee, do everything you can to make your guarantee stronger.

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  How to Give a Guarantee That Attracts New Business... and Doesn't Put You at Risk.
  Shout it from the rooftops?

Article Tags: computer technician, cute puppies, doing business, fool, full money back guarantee, insurance, insurance policy, marketing strategies, money back guarantee, pet store, puppy, risk, sales tool, shoddy products, small business, veterinarian



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Online Sales and Marketing vs Traditional - Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing
Re: Online Sales and Marketing vs Traditional - [quote="ltrahan":31w9r2iz]Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing[/quote:31w9r2iz] I second the request...
Re: Email Marketing, Permission Based - [quote="topeyinka":c0jwwo97]Thanks for this great informative post. I agreed with you on "email marketing" as one of the best internet marketing. And using double - opt -in will definitely help in email marketing. If we keep looking at the way spammers do send mail, one may say that days of "email marketing" are numbered but with double opt in, I think "email marketing" will still continue to work. Cheers![/quote:c0jwwo97] Offering a strategic mailing system and high quality content is much more important to me than a double opt in option. Offering something of value and not overloading your mailings is a long term plan to use email marketing effectively. A double opt in is over in the beginning - nothing long term and ongoing. I'd prefer opting in once and give me the option to opt out if the content isn't good enough. Shri
Show the Benefits - Offer a free test drive of the Product or Service with a Money Back Guarantee - Take the Risk out. This will help them make the decision but you have to work with them to realize it by explicitly state the benefits they are receiving.
Re: Two Useful Books To Help You Focus On The CLIENT - Hi David, To add to your thread, I'd like to recommend Jonathan Tisch's "Chocolates On The Pillow Aren't Enough: Reinventing The Customer Experience". Tisch's book includes content on "Welcoming Customers", "The New Art of Customization", "The Challenges of Customer Diversity" and "Offering Something Extra to Your Customers" to name a few.


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