Newspaper article The Observer (Gladstone, Australia)

A Guarantee Will Boost Confidence

Newspaper article The Observer (Gladstone, Australia)

A Guarantee Will Boost Confidence

Article excerpt

Byline: JUDY REYNOLDS 10X Co The Business X-Factor

SINCE 2009 we have seen the emergence of a much more risk adverse consumer market than previous years. With many consumers feeling jittery after the credit crunch and global downturn, they're more reluctant than ever to open their wallets to an unknown business, product or service.

Let's face it Co eight out of 10 potential customers who visit any business are sceptical in one way or another. They wonder whether your product or service will live up to their expectations and if they'll receive the value that they were promised at the point of sale. The customers that believe your promises are the ones that end up buying from you. Trust sells. So how do you build trust and take away the risk? It's easy. Give them a guarantee. The truth is, that putting a guarantee in place in your business will have a dramatic effect in attracting and converting new customers, and have a massive impact on your bottom line. Here is an example of what happens when companies put in place guarantees:

A Perth-based safety shoe company Steel Blue was so confident that their safety boots were a winner that they took a risk Co offering a 30-day money back guarantee, or promising to buy a customer a pair of their competitor's shoes. This was a world first Co the only safety footwear brand in the world to be sold with a money-back guarantee. The result took some time but paid off Co Steel Blue's sales grew 25% a year for the past six years; selling about 900,000 pairs of safety boots in 2005-06 Co despite the fact that the boots are more expensive than their competitors.

The seven rules for developing a guarantee:

Minimise the conditions Co The harder you make it to claim on the guarantee, the less effective it will be in generating sales and converting potential customers. Customers will feel that you have something to hide.

Maximise the pain Co The greater the negative effect to your business in offering a guarantee, the more powerful it is perceived to be by your customer. …

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