This is my dream.
I enter into a restaurant and before I begin to order, the owner stops by to offer this simple promise:
One final word-If you can’t give guarantee for your product, you don’t have a product.[bctt tweet=”Money Back Guarantee” username=”@Neetibiz”]
“If the food is not good, you don’t pay.
If the food is just good, you don’t pay.
Only if it’s great, do you pay.”
The food is absolutely to-die-for.
And I gladly tip him more than I normally do.
And sure enough, it becomes my favourite restaurant.
Dream with me about how changed your world would be if your satisfaction was promised, loyalty assured, and money back guaranteed was given . . . always.
[bctt tweet=”Every smartphone, every cup of coffee, every electronic gadget, every advertising spend, every feature film, every medical procedure, every automobile, every service guaranteed full satisfaction or you get the full refund. Now imagine, too, what it might be like to work for such a company.” username=””]
If your products are lousy, you are running out of time.
No one in your team will have a job for long.
But if you are a true believer in making stunningly good products, the whole team will walk the office chin-up with pride.
In the belief, that you are making a difference.
Why does “Apple” come to my mind always?
Whenever I use Apple products, I marvel at the awesome design aspect of their products.
Their Laptops, I-pads, I-phones.
Steve Jobs said in an interview that he wanted the keypads of Apple laptops to be so sexy, that customers should feel like licking them.
I always like buying products online with Amazon, because their return policy is so fuss-free and simple.
I also bought a freshener from PayTm and I was delivered a wrong product.
Their seller refused to replace the product.
I do not want to buy any product from them again.
Paytm has lost a good customer.
The moral of the story is that having a good product quality is never enough.
You need to create an environment of trust, which is non-negotiable.
You must have the courage to announce 100 % refund or give a money-back guarantee if customers are not happy with the product quality-no questions asked.
A money-back guarantee is a proof that you believe in yourself-and customers also should do the same.
It sounds absurdly impractical, but suppose this offer is extended by all organisations to their customers.
Some companies like Amway, Amazon-bay and Snapdeal are following this policy and laughing all the way to the bank. It is also no secret that product returns are never more than 2% under this policy.
Isn’t this the easiest way to accelerate your brand sales?
Now, it takes true grit to venture into that first step.
To debut an open-arms return policy- a no-hassles, money back guarantee which is core to your identity.
Can you take this ultimate risk?
But if you take this risk, amazing things will happen.
You will be the first to know the truth.
If you are a smart company, you will quickly correct things when your customer is saying, “ Give my money back, I don’t like your product, and this is the reason…”
So fix the problem and your customers will love you for that.
Customers will open their wallets for you.
It is seen that whenever any company has resolved a consumer complaint-consumer becomes more loyal to that company.
The buying behaviour of customers follows a fixed pattern.
Nobody likes to change his or her habits.
When did you try a new pizza joint or bought a TV online, or ordered a new brand you have never heard have?
It is easy to remain in your comfort zone.
Unless you are given an irresistible offer to switch brands.
Like JIO offer by Reliance Industry, where the trial offer was so good that 100 million people took up the offer.
In most cases, full refund or money back offer increases the trust level between the customer and the company.
And new customers may find it worthwhile to try the new product if their risk is reduced.
The offer of a full refund invites customers to tinker with new products, they wouldn’t otherwise consider.
Over time, you’ll attract a multiple of new buyers. It’s up to you to satisfy them.
You are creating an environment of trust.
The average customer will not care if 75 % of the products cease to exist.
Because they are not trusted or loved by the consumers.
A return policy creates an ecosystem of trust between the consumer and the company.
The bottom line is
I want a financial firm that will return my fees if I’m not satisfied.
A doctor, who will not charge me, if I am not satisfied with the treatment.
Marketing agency will return my money if they are not able to deliver as per agreed milestones.
A designer. A mechanic. A carpenter.Every service provider.
If you can’t trust your customers with a no-hassle return policy, why should they trust you?
I won’t say that refund guarantees work in every situation. You’ll have to determine where they fit.
And, sure, a tiny fraction of customers (1-2%) will abuse your trust, so you’ll want a policy for repeat offenders.
This is too small a price to pay.