Reverse risk is a technique you should test. It will make your product or service more desirable than your competitor’s.
Most companies hedge their “guarantee.” They don’t want to assume the risk. They are afraid the customer will want their money back. Yet, a solid guarantee is the easiest, most immediate way to a cash flow bonanza.
Your “iron clad” guarantee tells your customers that you’re willing to stand by what you say. It means your customer that you are confident that your product or service’s quality will meet their expectations — but you need to make sure it does.
Suppose a customer returns the product, rather than being disgruntled, graciously and readily give them their money back. In that case, The customer will gain confidence that your word is good, making it more likely they will purchase a product from you again because it’s easy to return what they don’t want, and you will be pleasant about it.
Also, it allows you to upsell your customers. It is also a prime opportunity to find out about the product or service they didn’t like and will enable you to offer them a product or service that will better serve their needs. You can also turn a bad situation into a good one.
Here is another way to look at risk reversal
The longer the guarantee is, the less likely it is that a customer will return the product.
If the product has a 1-day trial period, you’d better believe that during those 10 days, the customer will be hypersensitive to the product or service and its performance. They want to make sure they don’t get caught post the deadline, so they scrutinize and evaluate it before the 10 days are up.
Suppose the industry norm is 50 days; set your offer apart by offering a 60-day guarantee. Chances are, the customer is going to decide whether he’ll keep your product during the first week or two. Very few would determine that maybe the product isn’t for them on the 51st day.
This risk reversal idea will work for all types of businesses. If you are skeptical, test it out and see for yourself. If you can’t do it for legal reasons, you may be able to find a different way to execute this risk reversal idea.
How can you reverse the customer’s risk when he is thinking about buying your product? This would be a great question to work on using the random word technique in the strategy module.
