Great customer service is one of those areas of business that can be rather subjective. Does it mean a friendly voice on the phone when taking an order? Or is it providing a user-friendly website that is easily navigable? Both of those are certainly important, but what about your return policy? How about your product or service’s guarantee?
If you want to increase your sales, don’t make buying from your company a risky proposition. Here are five reasons to offer a money back guarantee on anything you offer through your e-commerce website.
1. Increase Trust
Unless you sell something that is very popular and well-known, it’s likely that most customers don’t know whether to trust the claims made on your web pages regarding its value. High-priced products present even more of a challenge.
Why should a consumer spend their hard-earned money an item without any assurance of its usefulness or entertainment value? By offering a money back guarantee, you are standing behind the product and setting your customers’ minds at ease.
2. Competition
Chances are that your online competitors don’t offer a money back guarantee. Then again, if you are competing against big box retailers, this is probably part of the company’s standard return policy. In either instance, it just makes sense to provide a full refund in case of dissatisfaction.
3. The Sales Pitch
A money back guarantee is a great bonus to mention in your sales copy. When consumers know it will be easy to return a product or ask for a refund on a service they received, they are more apt to make a purchase. It alleviates any worries and could be the final push that entices them to buy.
4. Good Business
Anyone who sells anything knows that one dissatisfied customer can produce a whole boatload of trouble. If you don’t offer a full refund, chances are that a customer who is unhappy will become truly irate. These days, posting a complaint online for millions of viewers to read is as easy as filling out a form on a web page, it’s far too detrimental to let dissatisfied customers go about their way. Do what you have to please them; refund their money and offer them an incentive to do business with your company in the future.
5. Human Nature
You may be worried about the risk of offering a money back guarantee. We all know there is a small percentage of the population in general that spends their time doing nothing more than trying to get something for nothing. Offering a guarantee on your products or services is not going to change this fact.
Moreover, the majority of consumers considers it too much of a hassle to return something or ask for a refund. Odds are with you. It is unlikely you are going to go out of business just because you guarantee your offerings.
A money back guarantee is part of good customer service. It develops trust, allows you to compete on a level playing field, and can often serve as that final incentive that makes someone pull out their credit card. The cost of not offering a no-questions-asked refund could be much higher than instituting this policy across the board.
About Sean Rasmussen
The biggest reason I see to offer a money back guarantee is increase the trust and credibility to the product or service being offered.
Many people do offer a “money back guarantee”, however when reading the fine print it is usually a lesser value than what the customer paid for. If you are providing a guarantee, emphasis should be put on it to advertise the fact that your product or service is carrying this additional incentive to deliver customer service.
Hi. This post highlights for me the essence of good business dealings. When we are in business we are offering a service that is inherently a part of ourselves. And so, the follow-through options of a money-back guarantee also reflect the faith that we ourselves, have in our business. I have noticed even less than admirable businesses make these offers, and as Cemil notes, they are not always as they seem. As more and more businesses become based on ethical values we do well do ensure the entirety of this attitude of our own ethics. Thankfully, here is one highly ethical marketer, as evidenced by the strong customer base.
It’s also a great way to hold yourself to high standards. If you’ve offered this possibility, then nothing like a money back guarantee is going to make sure you provide the best value, get your pricing right and provide a great product/service.
On the point about sales copy, potential consumers are concerned about the risk to them, so with a money back guarantee you can sell the benefit that it’s a no-risk buy.
You have given me something to think about. I wasn’t going to but I will now reconsider offering a money back guarantee. I wonder where I can get a guarantee jpg?
Hi Sean,
I think by offering an iron clad money back guarantee you are showing the customer that you believe wholeheartedly in your product or service. Also, I think that it needs to be genuine. I’ve seen people that offer a money back guarantee only to find that they will find a reason to not honor the guarantee. This approach only ensures that the customer will never buy from you again.
I know that some people will always ask for a refund and that’s okay because they will be few and far between. I think it’s much better to stand behind your product or service.
Looks like we all agree.
Trust is the basis of good, longterm business relationships. Online it is even harder to built up this trust, so a money back guarantee is a great way to built up trust. It shows that you believe in your product and also that you it is important to you to have satisfied customers.
As long as it is a true, honest money back guarantee it is a great way to establish yourself. And my guess is that longterm it will make you more money, as people feel saver to buy from you.
Hello Sean,
Great to offer a money back guarantee. I actually will not purchase from a site unless they offer a money back Guarantee, because that shows me how much they believe in their own product when they do offer one.
My question would be, How long should the offer be for? Some sites have a 30 day money back guarantee, some 60 days. I have even come across one that was for a year!!! I am only asking for a rough rule of thumb, what is the ideal time frame to offer the guarantee so that trust can be built between you and your customers?
Cheers
Lisa
Hi Sean,
These days I will not entertain the thought of purchasing anything online unless there was money back guarantee and it should be for at least 30 days so you have time to asses it properly.
Once bitten twice shy, make sure you get the Money Back Guarantee in writing. A Money Back Guarantee gives me so much more confidence in a product, more confidence in the seller, and that the seller really believes in their product or service.
Belinda
if a buisness offers the money back guarentee do they have to honor it ???