12/ 21/ 2006
by Jeffrey Moses
A guarantee is a statement, usually accompanying an advertisement for products or services, that gives assurance of customer satisfaction. It is, in effect, a formal promise that money will be refunded or some sort of compensation given for a product or service that is not found satisfactory.
We see guarantees many times a day, while watching television, reading magazines and newspapers, shopping or even reading billboards while driving. We are constantly exposed to advertising by businesses, with most accompanied by some sort of guarantee.
As we read these ads, we consciously or unconsciously measure and judge the strength of the guarantees. Some are vague and not compelling. Some are stronger and make us feel more confident in the product--and in putting our money down to make a purchase.
Other guarantees are what can be called "ironclad." They give us almost complete assurance that if we don't like what we buy, we'll experience no hassles getting our money back.
Here's a partial list of wording for guarantees, with each rated weak, strong or ironclad in parentheses.
1. We guarantee you'll be satisfied. (Weak. What does this mean? Will our money be refunded if we're not satisfied? Will conditions be attached?)
2. Money back if you're not satisfied and less shipping and handling. (Somewhat stronger but still weak. Does anyone really want to pay shipping and handling for something they don't like, or that doesn't work as promised? This guarantee means that a customer-service representative may be out of pocket if a product needs to be returned.)
3. We offer a full refund in credit for future purchases. (Ouch. Very weak. This limits customers to shopping at the same store. What if there's nothing the person likes?)
4. Full refund within 30 days, with proof of purchase, copy of bar code, reason for return, etc. (Weak. Customers know that sellers may make conditions difficult for a return. By the way, this sounds like a rebate offer. Companies make customers jump through hoops to get rebate credit, knowing that few will make the effort.)
5. Full cash refund if not satisfied. (Strong. This gives a customer assurance. Such a guarantee will give customers the feeling that they can trust your entire operation.)
6. If you're not satisfied, just return the product--we'll even pay for shipping! (Strong. This gives customers a sense of assurance. Sure, there's a bit of hassle to return something, but they know they won't lose money if they don't like what they buy.)
7. If you're dissatisfied for any reason, at any time, we'll give you a full refund. No questions asked. (Ironclad. A guarantee like this can motivate a customer to pay more than for a similar product with a weaker guarantee. Studies have even found that customers are generally happier with products that have strong guarantees. They feel relieved knowing that they can get their money back if something breaks, is faulty, or even if they just plain don't like what they bought.)
