How much do you believe in your product or service? If you are confident in your organisations ability to meet your customers expectations (and you should be!), putting your money where your mouth is with a rock solid guarantee is a great way to build trust and grow the sales of your organisation.
What is risk reversal?
Risk reversal is a way of building trust with your customers by identifying all their doubts and finding ways to overcome them. The idea behind risk reversal is that your potential customer will truly have nothing to lose when they buy your product or service so there will be nothing holding them back from giving you a try.
The difference between risk reversal and a guarantee
Risk reversal goes beyond the standard money-back guarantee that people come to expect when they buy any product. The standard guarantee states that if the product is faulty, the customer can return it for a refund or exchange it. While this is reassuring (and often a legal requirement), it doesnt go above and beyond or show that you have complete confidence in your ability to deliver what the customer really wants.
In contrast, risk reversal means not only allowing a customer the opportunity to return a faulty product, but also letting them return it at no cost (you pay shipping) if its the wrong colour, it doesnt fit right or they just plain dont like it. An effective risk reversal strategy is extremely powerful as it removes every doubt your potential customer has and gives them no reason not to buy your product or service.
How to do it
If you are going to be profitable with your risk reversal strategy you first need to identify your customers hesitations towards buying your products or services. Once you have determined their doubts, think about what you can do to assuage each and every one of them.
Of course if this is going to be effective you need to be sure your product or service delivers so its worth spending a bit of time to ensure what you are offering is absolutely top quality and delivers what is promises. If what you are selling isnt up to standard, you are going to find yourself issuing a lot of refunds and it will be a frustrating experience for everyone involved.
Done right, risk reversal is an incredibly effective marketing strategy and one that can build a positive brand image and a loyal following. Give it a try and see the results for yourself!