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Guarantee Periods

by Joshua Uebergang
9 replies
I've never actually tested it, but I offer a full 56 day refund and $97 out of my own pocket (given they've filled out the workbook in the program). No one has ever claimed the extra $97. I'm not sure how the guarantee affects results, but that's what I've done anyway.

Ryan Deiss says a 365-day guarantee increases conversion by 5.6% and reduced refund rates by 38%. That's general of course. The increase conversions make sense, but I can't figure out why would it reduce refund rates?

What guarantee's work best that you've tested? What's your reasoning behind them?
#guarantee #periods
  • Profile picture of the author MontelloMarketing
    Originally Posted by Joshua Uebergang View Post

    Ryan Deiss says a 365-day guarantee increases conversion by 5.6% and reduced refund rates by 38%. That's general of course. The increase conversions make sense, but I can't figure out why would it reduce refund rates?
    When people have a very limited time to get their refund they tend to get to it quickly. They don't want to forget or miss it by a day.

    On the other hand when they have a seemingly unlimited time to refund they put it off. The product gets stored until after the holiday... after "this next thing I must do" etc...

    Then maybe something else more pressing comes along. Family issue... a new product... that car you wanted finally came in, whatever...

    All these things put distance between you and your purchase.

    By then many just forget about it. Sometimes just about the refund... other times about your product.

    Always make your MBGs unconditional and for as long a period as you can.
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    • Profile picture of the author Bill Jeffels
      The longer the refund time the less refunds you will get.

      Initially that my not make sense... Here's why this is true. And this is assuming your not selling crap.

      If you give someone a 30 day gurantee they are going to want to find a fast reason to send your product back taking in shipping time thinking their going to be hassled about it etc.

      If you give someone a 90 day... 6 month, 9 month, 12 month gurantee they feel they have lots of time to try out your product. And as Vin pointed out in all likely hood they may forget all about it. also, to be honest put yourself in your prospects position. Wouldn't it make you feel better about purchasing something that the company offering it is so confident in their product they would give you a 6 month gurantee?.

      I just bought a $200 pair of Oakley sun glasses and the lenses have a life time gurantee. I'm probably never going to take them up on the offer... but it sure gives me a good feeling inside knowing that I could.

      Take care,

      Bill Jeffels
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  • Profile picture of the author Alexa Smith
    Banned
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    • Profile picture of the author Scott Murdaugh
      There is... The longer the guarantee the lower the refund rate... It doesn't hurt conversion rates either.

      -Scott

      Originally Posted by alexa_s View Post

      As Vin says, I think. No hurry to claim on a longer guarantee, and after a year many have forgotten. I believe that in marketing, in general, there's usually an inverse proportionality between lengths of guarantees and rates of refund-claims.
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  • Profile picture of the author Alex Cohen
    Originally Posted by Joshua Uebergang View Post

    I've never actually tested it, but I offer a full 56 day refund and $97 out of my own pocket (given they've filled out the workbook in the program). No one has ever claimed the extra $97. I'm not sure how the guarantee affects results, but that's what I've done anyway.

    Ryan Deiss says a 365-day guarantee increases conversion by 5.6% and reduced refund rates by 38%. That's general of course. The increase conversions make sense, but I can't figure out why would it reduce refund rates?

    What guarantee's work best that you've tested? What's your reasoning behind them?
    Joshua,

    To be technical about it, you're offering both a guarantee AND risk reversal.

    Did Deiss also have risk reversal in his test?

    Alex
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    • Profile picture of the author Joshua Uebergang
      Insightful responses guys. Thanks.

      I'll make my products 365 days now. They're all high quality products I believe in strongly, not crap I see in my niche.

      The Oakleys got me curious now. Does anyone know of lifetime guarantees for any information products? I'd love to see them! The test results would be interesting to hear.

      Alex, it wasn't clear if Deiss did risk reversal. He gave a flat out $100 back so maybe it was risk reversal if the product sold for $47.
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  • Profile picture of the author dtendrich
    Think about something you bought a year ago, which, when you bought it, you thought, "I might want to return this at some point."

    Still thinking?
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    • Profile picture of the author marciayudkin
      LL Bean pretty much has a lifetime guarantee on its products.

      I've used it when an outdoor thermometer I was given as a housewarming gift didn't work correctly, and the replacement they sent didn't work right either. I think that's in keeping with the intention of their guarantee.

      My husband and my sister have returned products that they felt didn't last as long as they should have. That's a matter of judgment. I'm not sure I agree with that, but it's not outrageous.

      However, I know people who flat-out abuse the lifetime guarantee by buying a pair of jeans or hiking shoes and returning them for a brand-new pair and doing the same when those wear out again. To me, that's clearly an abuse of the system.

      From LL Bean's point of view, the lifetime guarantee must be more effective in keeping longterm customers and the company's reputation than it is abused.

      The only infoproducts company I know of that offers a lifetime guarantee is The Teaching Company, which produces college-level courses on subjects like science, history and literature. The Teaching Company : Educational Courses on DVD, Audio CD, Tape, and Cassette - Lecture Series by College/University Professors - they are a real class act and have creative catalogs that totally suck me in.

      Marcia Yudkin
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