NFIB

The Single Strongest Offer You Can Make, Part II
04/ 02/ 2002

To give customers assurance of quality, and to convince them that they have nothing to lose if the product you sell doesn't provide a solution to their needs, you should offer a 100% no-questions-asked money-back guarantee. In last week's Workshop, Jeffrey Moses showed how important a 100% guarantee is to customers, and how it can increase your sales volume. In today's Workshop, he continues the discussion.

To provide complete satisfaction to customers who return your products, you'll need to set up a reliable system within your operations, and you'll need to do this before returns start coming in. Such a system includes:

1. An easy way for customers to notify you of returns (toll-free phone number, easy-to-understand form and e-mail on your Web site)

2. Effective shipping policies, using UPS, FedEX, U.S. Mail, or any of the other large shippers. Such a system allows the customer to get the product back to you with a minimum of time and effort. To accomplish this, you may need to supply return labels to customers. All of the large shippers can work with you on this.

3. Adequate staff and record-keeping systems to handle return inquiries, shipping details, and receipt of incoming returns.

4. Adequate funds to send out refund checks, or charge back credit cards.

5. An attitude among your staff that encourages friendliness and acceptance of customers who want to make returns.

The philosophy behind a 100% money-back guarantee policy should pervade your operations, including customer ordering, technical support, and customer service. When customers know that you stand behind your products, your sales efforts will be more fruitful.

When a customer experiences satisfaction in a return transaction, they feel confident buying from the retailer in the future. Because of this, a return should not necessarily be looked at as a complete loss. You may be sowing the seeds for future business.

An added note: as strong as the 100% guarantee is, there is one stronger offer you can make -- allow customers to take possession of a product BEFORE they pay for it. In effect, this is a 100% guarantee with minimal risk on the part of customers.

There are numerous variations of the "Enjoy now, pay later" guarantee:

1. No payments due until (next year, next spring, etc.)
2. Pay in three easy monthly installments.
3. "Try it free for one month. If you aren't 100% satisfied, return it and pay nothing."

Each of these variations provides complete satisfaction about the number one and number two questions customers have when buying: "Will I like it? And will I be able to get my money back if I don't?" When you can provide satisfactory answers to those key questions, you'll increase your sales potential tremendously.

Small Business Sound Off
Does this story hit home?  Share your story with us