This is my dream. I enter into an Indian restaurant and before I begin to order, the owner stops by to offer this simple promise:
“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.”
Food is great. And I am glad to tip him more than I normally do. And sure enough, it becomes my favorite 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. 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 full refund.
Now imagine, too, what it might be like to work for such a company.
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 true believer in making stunningly good products (why does “Apple” come to my mind always?), the whole team will walk the offices chin-up with pride. In the belief that you are making a difference.
It sounds absurdly impractical, but suppose this offer is extended by all organizations to their customers. Some companies like Amway, E-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 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
Nobody likes to change his or her habits. When did you try a new pizza joint or bought a TV online, a brand you have never heard of? Or ordered 6 dresses for your wife?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.
Create 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 consumer and the company.
The bottom line is- that I want a financial firm that will return my fees, if I’m not satisfied. A doctor, too. Same from a marketing agency. A designer. A mechanic. 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.