Why a Guarantee Boosts Loyalty and Sales

The news about the potential for GM’s new electric car, Volt, to catch on fire has been everywhere, but one key lesson is being overlooked: the car company is offering to buy back the car from any dissatisfied customer. Wow! This is an extraordinary step for customer service and begets our discussion today on why you should have a guarantee too:

1. It Reduces The Risk Of Purchase -Prospects can easily and quickly become buyers if they know they can always return it and get their money back. 2. Demonstrates Your Own Belief In Your Product Or Service – It takes guts and confidence to offer a money-back guarantee; are you ready to do it? 3. Boosts The Trust Factor – By you taking on the risk vs. your customer with a guarantee, you move the relationship faster towards the trust and respect threshold – essential in any business relationship.

What kind of Guarantee Can You Offer?

1. A Simple Money-Back Guarantee – if you are not 100% satisfied, you refund the purchase price.

2. Time Limiter – Imposing a time limit: 30 or 60 days is common. For my books and audio products, I have a LIFETIME guarantee: If, in the course of my lifetime, you feel my products didn’t help your business, I will refund your money – no questions asked.

3. Performance Guarantee – If the service doesn’t double your revenue, for example.

What can you offer? I welcome your comments below.