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Sales and Marketing
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Using a Strong Risk Reversal Closes more Sales
by Archie R. Lawhorne
When you minimize risk in purchasing decisions a lot more people
are willing to say "yes". Once they sample your product or service,
if it performs as you say, most customers will keep that product
and continue buying again and again.
Here is a little story to illustrate my point.
A farmer wanted to buy a hunting dog for his son. There were two
for sale in a nearby town. The first seller told the farmer he
was asking $300 for his bloodhound, non-negotiable.
The second seller told the farmer about his bloodhound, long before
he mentioned a price or asked for a commitment. He said the puppy
was from a long line of champion bloodhounds, well-known in the
area for their tracking skills. And he brought out the puppy's
mother and father and explained that they were like members of
the family; very loyal and constant companions for the last six
years. The seller wanted to make sure the puppy went to a loving
owner who would give it attention and put to use the dog's great
hunting abilities. The man went on to tell the farmer that he
wanted the farmer's son to try out the puppy for a month before he
had to make any decision. He offered to provide an extra kennel
and a month's worth of food for the puppy. Finally, he said, at
the end of 30 days, he would drive out to the farmer's house and
either take back the puppy, or ask then to be paid.
Which puppy do you suppose the farmer decided to purchase for his
son? Obviously there was no question. And there will be no question
for you if you apply strong risk reversal into every sales offer
you make. What exactly do I mean by a strong risk reversal? I'm
referring to an iron-clad guarantee that eliminates all, or most
of all of the customer risk in the transaction.
The clearer, stronger and more detailed the guarantee, the more
credibility and impact it will have on a buyer. Consider how much
more powerful it is if instead of saying, "your satisfaction is
guaranteed," you say, "we unconditionally guarantee performance
for a full 30 days." That's better, wouldn't you agree? But, what
if you went a step further and said, "No questions asked, 100%
money-back guarantee anytime within 60 days if my product doesn't
perform exactly as promised." That's even better. But you could go
still further by saying, "No questions asked, 100% money-back
guarantee. If you don't experience noticeable and measurable
improvements in your speaking abilities, a wider vocabulary,
and bolder voice delivery, if you don't get the results we
promised within 90 days of using our system, we'll gladly give
you a complete and immediate refund of your full purchase price,
no questions asked; that's our guarantee to you."
Notice the difference a strong and specific risk-reversed performance
guarantee can make? When you apply risk reversal this way, your sales
almost always skyrockets, and stays that way. You make more sales,
sell larger purchase units and sell more frequently when people
don't worry about making the wrong or bad buying decision.
When you incorporate risk reversal, you essentially eliminate your
prospect's fear that they will make a bad, incorrect or damaging
purchasing decision. That's an extremely powerful, persuasive point
to make. It moves anyone who's indecisive or mildly interested and
turns them into highly favorable prospects. If people are trying to
decide between you and one or more of your competitors, it tips the
level of the playing field significantly to your advantage.
Just adding risk reversal and a purchase strong guarantee to your
sales offer makes a powerful difference.
There are a variety of approaches to the risk reversal strategy.
* A software vendor guarantees its product will reduce manufacturing
costs by at least 10%.
* A copywriter offers his services for free if his direct mail
package pulls less than a 5% response.
* A commercial water filter distributor offers to buy back any
filtering units not sold in the first 3 months.
* An interior decorator agrees (in writing) not to be paid until her
customers are completely satisfied with the work she's done.
If you don't employ some form of risk reversal, start doing it
right away. If your current guarantee is short and vague, enhance
your copy with more specifics and more attractive terms.
If your product or service is high quality and meets performance
expectations, the longer the guarantee and the more specific the
performance promise you make, the more people will buy. It's that
simple.
Typically a 60-day guarantee will out pull 30 days by 20 to 100%.
Test it yourself and see what results you get. The more specific
you get in describing what "satisfaction" means, the more compelled
they become to act in order to experience that benefit for themselves.
If you're concerned that employing a strong risk reversal will cost
you in product returns and lower profits, don't be. Typically, unless
your product or service is flawed or just plain inferior in terms of
meeting customer expectations, the number of people exercising a
refund guarantee is negligible. But the increase in people taking
you up on the initial sales offer is anything but negligible.
About the author:
Archie R. Lawhorne, APR, is an accredited public relations
professional, marketing writer and president of Crosspoint Publishing
Company in Zimmerman, Minnesota. For more information on Archie's
current business venture, visit his web site at:
http://www.sixfigureincome.com/free/?73917.32 or
e-mail to: arl@sixfigureincome.com.
