Effectiveness of Guarantees?

Discussion in 'General Marketing' started by AOCenteno, Aug 30, 2008.

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  1. #1
    What are your experiences using guarantees? Has anyone seen their sales take off after putting a 110% or 200% money back guarantee on their site? Any horror stories of too many returns/scams?

    Thanks for the insight?
     
    AOCenteno, Aug 30, 2008 IP
  2. coreygeer

    coreygeer Notable Member

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    #2
    You better have one damn good product if you guarantee a 200% return on your product if it doesn't work out and I wouldn't do this anyway because even if someone gets the full benefits of a product a lot of pathetic low lives will still want money back.

    a 100% guarantee assures customers there's no risk or money to be lost and most of them will be too lazy to ask for their money back anyway. That's just my experience ;)
     
    coreygeer, Aug 30, 2008 IP
  3. copper12

    copper12 Peon

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    #3
    Regardless how effective it is, or not, AOCenteno, shouldn't you have one anyway?

    To sweeten it, offer them, say, a 14-day free trial. On the 15th day, process their credit card.
     
    copper12, Aug 30, 2008 IP
  4. Tobidotman

    Tobidotman Peon

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    #4
    Guarantees usually backfire on digital products, but with physical products i would recommend it if your absolutely sure your customers will be happy with your product, try a survey 1st
     
    Tobidotman, Aug 30, 2008 IP
  5. mentos

    mentos Prominent Member

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    #5
    No such thing as easy money.
    And 99% of them that offer such guarantee is scam
     
    mentos, Aug 31, 2008 IP
  6. copper12

    copper12 Peon

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    #6
    Yeah, I'm afraid that if you say stuff like "200%," it will just backfire on you.

    I don't even use the word "guarantee" in my site.
     
    copper12, Aug 31, 2008 IP
  7. AOCenteno

    AOCenteno Peon

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    #7
    Background Info:
    I'm not selling a digital product; my product is custom-made clothing that requires the customer to design the garment along with enter their measurements. I am focused on the US right now, and brought up the guarantee question because I want to create a risk free environment for my customers.

    The Problem:
    The business model is new here in the US, and many people find it hard to believe you can get such a great fit/well made garment with you taking your own measurements. People are just hesitant to try.

    Possible Solution:
    Offer a 110% guarantee (vs our current 100%) - the extra 10% for their time if it goes bad. The studies I have read show that guarantees are rarely acted upon by consumer; in any case we make damn good clothing with most customers 96% completely satisfied by the original product received. The remaining 4% percent we either pay for alterations or rebuild the garment.

    My Question to You all
    I want to hear your experiences, especially if you notice a pick-up in sales when you offer a 110% vs a 100% guarantee. In the four hour work week, Ferris talks about a 200% guarantee.....I think this may be extreme, but I would like to hear real world experiences with the different types of guarantee out there.
     
    AOCenteno, Sep 7, 2008 IP