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Risk Reversal Martin Lee on 10 Sep 2006 10:06 pm

Risk Reversal

Here’s a marketing question from Nikolas:

What’s the best way to present solution to a problem not a problem . How can I present method which guarantee results like better muscle tone, bether breathing, better health so that they can believe this. certainly is the best soultion to them, they see the result, but they dont believe and they quit. So, how can I make them to believe, to respond better, to appreciate the method, to recommend me to someone,…

Hi Nikolas,

There are two simple methods that you can use.

1) Include testimonials from satisfied clients in your marketing materials (sales copy). These testimonials should include the full name and even photos so that readers know that they are real. Have you been asking your existing clients for testimonials?

2) Use risk reversal when you present your solution. One way is by using a unconditional 90 day (or some other time frame) money-back guarantee. E.g.

“Practice our methods for x months, and if you do not get a better muscle tone, better breathing and better health, I want you to tell me and I will gladly refund your entire purchase price on the spot, no questions asked and no hard feelings either.

If after reading about our methods, you think that it will not work for you, just tell me and I will also refund your entire purchase price, no questions asked. You need not even prove to me that you tried out our methods.”

Here’s an example of a sales letter that uses this risk reversal method effectively. Notice how they made the guarantee more sincere by adding an “on the other hand” clause right after it.

An important note. Conditional guarantees can backfire and should not be used as the only guarantee. They should be used in addition to an unconditional one. E.g.

“Practice our methods for x months, and if you do not get a better muscle tone, better breathing and better health, I want you to tell me and I will gladly refund your entire purchase price on the spot, no questions asked and no hard feelings either.

If after reading about our methods, you think that it will not work for you, just tell me and I will also refund your entire purchase price, no questions asked. You need not even prove to me that you tried out our methods.”

And if you can show me proof that you have tried out our methods diligently for x months, and your health has not gotten better, we will even send you a cheque of $50 to thank you for giving us a try.”

Something like that.

Conditional guarantees, if used correctly, can be very powerful. Of course, the parameters must be measurable.

And if your service/product is expensive, one other thing that you can do to reduce the risk further for them is to allow them to pay by monthly installments instead of one lump sum.

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