You’ve probably heard that adding a guarantee can increase your conversion rate. In fact, I’m pretty sure every marketer, designer and copywriter has heard this; which is why it’s so baffling to me that so many small businesses do not offer guarantees – or at least, they don’t make them evident on marketing materials such as websites, postcards, posters, brochures and flyers.
If you offer a guarantee, you should display it prominently in all of your marketing materials. If you do not offer a guarantee, you should consider adopting one. Some companies balk at guarantees, especially micro-businesses, sole entrepreneurs and freelancers – essentially, those who cannot afford to give refunds. But a guarantee doesn’t mean you have to offer money-back; rather, you can simply guarantee customer satisfaction.
How A Guarantee Boosts Sales
Countless studies and split tests have proven that guarantees increase sales conversion rates. And the more your guarantee covers, the more customers will feel comfortable buying from you. Zappos is famous for offering a 365-day return policy; you don’t have to go that far (and it might not even be suitable to your business), but a guarantee that is good for 90 days is better than one that’s good for 30 days.
We’ve all heard that we buy on emotion and justify with logic, but there’s more to it than that. Shopify’s Mark Hayes discusses how behavioral economics have shown humans are intrinsically afraid of loss. A guarantee qualms those fears. When customers are riding the tide of emotion, they can defer logic to a later time because they trust in your guarantee. In most cases, they never revisit their purchasing decision.
The same is true for guarantee limits: the less restrictive your guarantee, the fewer hoops customers feel they will have to jump through in order to take advantage of it. Keep your guarantee simple and inclusive, and clearly spell out what it covers. Is it a money-back guarantee, unlimited revision until the customer is satisfied, or something else altogether?
Once you’ve determined what, exactly, your guarantee covers and for what period of time (essentially, you terms), you need to make sure your guarantee is prominently displayed on your marketing materials. Brochures, postcards, posters, business cards, flyers, web headers and banners should all incorporate a seal that highlights your guarantee; and that seal should be “above the fold” and impossible to ignore. Your sales copy should include words such as “guarantee,” “or your money back,” “unlimited revisions” and “satisfaction guaranteed.” Reinforce your guarantee throughout your marketing materials to ensure it is noticed and understood.
Standing by your work and minimizing customer risk is one of the most powerful ways to increase sales. It’s also one of the easiest. If you don’t promote a guarantee, you’re losing sales. Test it out for yourself; I guarantee you’ll notice a difference!
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