Guarantees are an important element you should include on every landing and sales page. Having a solid guarantee shifts the risk from the buyer (your potential customer or client) to you (the seller). With a strong guarantee, you may be able to overcome potential objections to a sale and reverse the risk of buying, which puts you in a position to make more sales. Testing solid guarantees is an important process in for Conversion Rate Optimization.
Many businesses fail to realize or accept that fact that every transaction has risks. Either the customer is risking their money on a product or service they may not be happy with, or the business is risking rending a service or selling a product that the customer benefits from, only to have a refund request or charge back which can hurt the business. While it may sound painful, the right way to go as a business is to always take the risk on yourself, which can open the door to many more sales.
Because of this risk, many businesses don’t focus on guarantees because they’re afraid people will take advantage of such generosity. And it’s true, some people will take advantage of the guarantee. But generally, many more people will buy because of a solid guarantee, making the slight bump in refund requests irrelevant. Wouldn’t you rather have 200% more sales, even if the refund request count increases by 1%?
If you have a customer who is unhappy with their purchase or simply changes their mind and wants their money back, you’re probably going to refund them anyway, aren’t you? So why not proudly state that fact as part of your sales proposition? While some people are only interested in the lowest price, some may be looking for the best guarantee or the best service, so you may convert some potential customers into buyers by simply showing that you back your products or services with a no-risk guarantee.
If you feel uneasy about offering a guarantee, just take a look back over the past year and see how many people have been dissatisfied with your product or services in that time. If you offer a quality product, your refund rate should stay roughly the same, even with a way more generous guarantee. Satisfied customers generally won’t abuse a refund policy, so you shouldn’t have much to worry about.
So with that being said, create the strongest guarantee you can live up to (while also staying within applicable laws), and state it often to reassure potential buyers that you’re assuming all of the risk so they don’t have to. If your guarantee is stronger than your competitors–and it should be–draw attention to it. A one-year no-questions-asked refund policy can be a strong selling point.
What Type of Guarantee Should You Offer?
As stated above, your guarantee should be as strong and compelling as possible… just be sure you can back it and fulfill it if someone decides they want a refund.
There are a variety of types of guarantees, some more appropriate for your business than others. If you offer air conditioning repair, for example, a guarantee could be that if anything goes wrong within 90 days of the service you’ll have someone there within 24 hours to fix it at no extra cost. If you sell a product, you can offer a no-risk 15-day trial where you deliver the product and guarantee you won’t charge their card for two weeks to ensure they’re happy with the purchase.
One of my favorite guarantees is a better-than-100%-money-back guarantee. You can offer bonuses when someone purchases a product or service, and if they aren’t happy then not only do they get their money back, but they get to keep the bonuses just for trying your product/service out. A good way to avoid losses with this type of guarantee is to offer digital goods as a bonus (bonus reports and ebooks, video courses, software, etc.).
No matter what type of guarantee you offer, be sure you make it perfectly clear what your guarantee entails. Simply stating that your service or product is guaranteed isn’t enough–no one will know what that means because of how vague it is.
The key is to test different guarantees against each other to see which offer outperforms others. While testing, you’ll also want to experiment with wording the same guarantee differently and putting your guarantee in different places.
Where You Should Put Your Guarantee?
There is no “right” or “wrong” place to put your guarantee, but you should repeat it often throughout your sales message.
If you have a sales page, a sales email, or a direct mail piece, you may want to test starting off with your guarantee right in the headline. You’d be surprised what kind of response you can get if you start off with a strong guarantee as you hook your potential client or customer into reading the copy. The same goes for video sales letters and other forms of communication.
Another great place to put your guarantee is in the postscript of your sales page/email/direct mail piece. Studies have shown that people often jump right to the P.S. section of a letter. So you should capitalize on that space and use the opportunity to present a compelling risk-reversal proposition.
Once again, you’ll want to test not only how your guarantees are worded, but where they’re placed. Some tests should dramatically outperform others in terms of conversions.
No matter what type of guarantee you choose, be sure it’s compelling and clearly stated multiple times. When a customer is close to deciding to spend their money with you, they’ll likely want to be sure they’re going to be 100% satisfied. Offering a no-risk guarantee for them can help alleviate their fears and generate a lot more sales.