A powerful guarantee can be an effective way to boost sales.
Your customers want to feel confident that they’re making the right choice before they buy from you.
In this blog post, you’ll learn what a guarantee is and how to create a guarantee that is not only compelling but also provides real value to your customers.
Let’s start with the definition of a guarantee in marketing.
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What is a Guarantee in Marketing?
A guarantee in marketing is the process of making buying your product or service risk-free.
The biggest challenge you’ll face as a marketer is turning on-the-fence prospects into paying customers.
New customers will be reluctant to buy from you, and that’s normal. They don’t know you.
A strong guarantee helps to alleviate their concerns about your products and services.
If for some reason, a customer is not happy with your product or service, they should be able to get a refund, even if they keep the product.
Sound crazy, yes!
And you may be wondering, “Won’t they take advantage of you?” That’s the funny thing. Most people won’t. And you don’t want to be associated with those who would take advantage of you.
But because you have such a powerful guarantee, your customers will have more faith in you and you’ll reduce the number of refunds you get.
Now that you know what a guarantee is, let’s talk about the importance of having one for your business.
Why are Guarantees Important?
As already mentioned above, a powerful guarantee will increase the customer’s trust in you. It will also increase your online sales.
Guarantees are important because it lets the customer know that you stand behind your business 100% and are responsible for its outcome.
A solid guarantee also lowers your prospect’s guard.
They’re more willing to give you their money when they know that you’re not a faceless business looking to take their money and run away.
Guarantees are important, yes. But a guarantee differs in its effect. If you want your guarantee to be very effective, make it longer.
How Long Does Customer Guarantee Last?
It depends. But a rule of thumb is, “The longer the guarantee, the more potent it is.”
This means that if you want your guarantee to be 10x more powerful than the ordinary 30 days money-back guarantees out there, you need to make yours a 90-day guarantee.
If you want to make it even more compelling, make it a one-year guarantee.
Want to take it a step further? Create a lifetime guarantee for anything you sell and watch the sales pour in.
A note of warning; No matter how strong your guarantee is, it will be useless if you don’t have steady traffic coming to your page. Don’t complain that you’re not making any sales even though you have a strong guarantee; when in reality only one or two people visit your sales page every day.
To experience the effectiveness of your powerful guarantee, send a reasonable amount of traffic to your sales page and watch the sales pour in.
Why People Don’t Buy – And What You Can Do About It
A part of our brain lights up when we experience pain. The part that lights up is called the insular.
Researchers show us that activity in the insular can predict whether people buy from you or not.
In a trial, saw a product and later the price. Then they finally decided whether or not to buy it.
When participants saw the price of the products, their insular became active. The activation was greater when the participants saw the price of a product they didn’t buy.
People don’t buy your products mostly because they experience the pain of spending; not because they’re discussing whether or not they should buy your product.
This proves that…
People don’t buy because it hurts to spend money. And that’s why it’s your job as a marketer to make it hurt less.
Why does it hurt in the first place?
Every purchase comes with risks;
- What if the product doesn’t work as advertised?
- What if they made a wrong decision?
- What if it’s a waste of time
Remove these risks and you’ll remove the pain.
And when the pain is gone, your bank account will add weight. Basically… Less pain for the customer = more sales for you. Why?
Because the guarantee transfers the pain from the customer to the seller.
Your guarantee tells the buyer that if the product doesn’t deliver, they can get their money back… thus eliminating the pain of spending. It’s buyer psychology and it works.
3 Basic Elements of a Powerful Guarantee
Before we jump into the types of guarantees, let’s talk about the three basic elements of a good guarantee.
- Length: The length is the amount of time for which the guarantee is valid. As you already know, the longer the better.
- Payoff: This is what your customers will receive when they take you up on your guarantee. Do they get a refund or something else? Will they get more back than the value they got? There are cases of marketers giving back 10x the amount the customer paid for the product. The standard is usually a 100% money-back guarantee.
- Conditions: Your guarantee can have a condition attached to it, or not. It depends on you. This is where you tell them what satisfactory means and the steps they should take to get the payoff.
Next are the types of guarantees you can use:
What Are the Types of Guarantees?
You’ll discover many types of guarantees in this section. Pick the one that works best for you and use it in your promotions.
The standard money-back guarantee
You can offer a standard 30-day, 60-day, or 90-day money-back guarantee. This is pretty standard. You can also do a lifetime money-back guarantee. The longer the better.
Here is an example of a standard money-back guarantee:
“Put us to the test! Use [PRODUCT] for up to [LENGTH] days, risk-free. If for any reason you’re not completely satisfied, return the product for a FULL refund. Just drop us a line at [EMAIL ADDRESS] to take advantage of our [LENGTH]-Day Money-Back Guarantee.”
The more-than-money-back guarantee
When you buy a product, you’re not only spending money, you’re also investing your time and passing up on other opportunities. This is how your customer feels. So you want to make the guarantee as sweet as possible.
Therefore, a more-than-money-back guarantee can be an extremely effective type of guarantee to whet your prospects’ appetite.
The standard more-than-money-back guarantee is a double-your-money-back guarantee. Here’s an example:
“We Believe We’re The Best Choice For You! So we’ve decided to take all the risks. If at any time in the first 60 days, you feel that we did not live up to our promises and you choose to leave us, we’ll pay you back DOUBLE what you’ve paid us on that package, up to the point that you cancel – no strings attached. No questions asked!”
This type of guarantee won’t increase your refund rate much.
But use it with caution.
Some people will take you out on your offer for the sole purpose of returning it back later for the guarantee.
“We’ll fix it” guarantee
This is another way to make your guarantee stand out and increase sales. Here’s how it works:
An insurance company promises to protect you against identity theft. If their services don’t work, you’re not worried about getting your money back. Your major concern is in recovering your identity.
This is where using this guarantee comes into play. You can use this guarantee:
“If you ever become a victim of identity theft under our watch, [COMPANY] will spend up to $1 million to hire experts to help your recovery.”
You can apply this type of guarantee in many ways.
Think of creative ways to do this.
The risk-free guarantee
This is a cousin of the money-back guarantee. The only difference is context.
This type of guarantee works best with high-ticket items and subscription-based businesses.
Here’s an example:
“If for any reason you’re not satisfied with your membership, simply e-mail [EMAIL] during your first 30 days and we’ll refund your money, no questions asked.”
What’s amazing about this guarantee is that it pushes people over the fence and moves them from “I’m thinking about it,” to “What the heck, I’ll try it.”
100% satisfaction guarantee
This is a win-win guarantee.
Instead of just offering your customers money-back satisfaction, create a guarantee that both you and the customer can benefit from.
This does not only guarantee your customer’s happiness, it means you’ll get another chance to make the sale.
This is a nice one.
By using this guarantee, you offer a money-back guarantee without putting more money on the line.
If you can combine your bonus with a strong money-back guarantee, your prospect will salivate for your product.
Here, if people buy your product and don’t like it, they can keep the bonuses. No hard feelings. Here’s an example:
“100% Risk-Free: If you try [PRODUCT] today, you get all these bonuses… and you have 30 days to try it all out. If for whatever reason you don’t like it, email our support team within 30 days, and we’ll give you 100% of your money back.”
Be creative with your guarantees.
Figure out how best to take the risk off your customer’s shoulders so that they are much more comfortable making a purchase.
7 Ways to Create a Powerful Guarantee
Below are 7 ways you can create a powerful guarantee:
1. Identify your customers’ concerns
Before you can create a guarantee that will be effective, know what concerns your customers have.
What are the main objections they raise when considering your product or service? Some concerns include:
- Will the product/service work as advertised?
- Will it be easy to use?
- What if I don’t like it?
By understanding these concerns, you can address them in your guarantee and provide reassurance to your customers.
2. Create a powerful guarantee that is specific and meaningful
A vague or weak guarantee is unlikely to persuade customers to make a purchase.
Your guarantee should be specific and meaningful, providing a clear benefit to the customer.
For example, instead of simply saying “Satisfaction guaranteed,” you could say “If you’re not completely satisfied with your purchase within 30 days, we’ll refund your money and cover the cost of return shipping.”
By making your guarantee specific, you’re showing your customers that you’re confident in the quality of your product or service and that you’re willing to stand behind it.
3. Make it easy to claim the guarantee
Even the most compelling guarantee is useless if customers find it difficult to claim.
Ensure that your guarantee is easy to understand and that the process for claiming it is straightforward.
This will give customers the confidence to make a purchase, knowing that they can easily get their money back if they’re not satisfied.
4. Promote your powerful guarantee
Once you’ve created a powerful guarantee, promote it to your customers.
Ensure that your guarantee is displayed on your website and in your marketing materials.
You could even consider offering a guaranteed badge or seal that customers can easily recognize.
5. Monitor and improve your guarantee
Your guarantee is not a set-and-forget strategy.
Regularly monitor its effectiveness and make improvements as necessary.
This could involve surveying customers who have claimed the guarantee to find out what they liked and didn’t like about the process.
Also, track your conversion rates before and after implementing the guarantee to see if it’s having a positive impact on sales.
6. Offer additional value with your guarantee
To really make your guarantee stand out, consider offering additional value to customers who make a purchase.
For example, you could offer a free consultation or coaching session with your product/service, or you could offer a free eBook or other bonus material that complements the product/service.
By offering additional value, you’re giving customers even more reason to make a purchase and providing them with an incentive to claim the guarantee if they’re not completely satisfied.
7. Use social proof to reinforce your guarantee
Social proof can be a powerful tool in persuading customers to make a purchase.
When customers see that others have successfully claimed the guarantee and are happy with their purchase, it can provide reassurance that they’re making the right decision.
Consider using customer reviews and testimonials to reinforce your guarantee.
Highlight the experiences of customers who have claimed the guarantee and were happy with the outcome.
How to Boost Your Sales with a Powerful Guarantee: Final Thoughts
A powerful guarantee can be a highly effective way to boost sales and give your customers the confidence they need to make a purchase.
By understanding your customers’ concerns, creating a specific and meaningful guarantee, making it easy to claim, promoting it effectively, monitoring its effectiveness, offering additional value, and using social proof, you can create a guarantee that not only drives sales but also provides real value to your customers.