*A strategy that can easily cause customers to spend more with you

14 replies
*What a pony can teach you about your business
*Putting the risk on you
*A strategy that can easily cause customers to spend more with you

Ready? Let's Roll...

With all the products or services out in the world, how would you stand out and at the same time, take all the risk away from your customers?

How about in your copy, how do you make it risk-free or less risky to your target market?

Glad you asked because we're going to discuss risk reversal or basically...your offer and guarantee.

No matter what you sell, there shouldn't be any problem in guaranteeing what you sell.

If you don't have a good product or service or you get lots of complaints about it, you need to solve that problem before you start using risk reversal.

Here is an old example of risk reversal that I think will drive the point home a little better for you.

You may have heard this one, but either way, it's important to read it again below...

You see, a couple wanted to purchase a pony for their daughter.

They went to one dealer who said if the pony she chose wasn't right, she could bring it back and exchange it for another. The price of the pony was $1000.

This is typical of horse dealers and is their idea of risk reversal.

You might be thinking well that's a great guarantee or a great way to take the risk away from the transaction, right?

Nope!

The customer is still locked into having to get another pony from that dealer.

Now, compare this risk reversal strategy or guarantee from the second dealer. The next dealer says...

"It's important your daughter is happy with her pony in every way. Please take the pony, let your daughter look after it and try it out for two weeks. I'll provide you with the hay to last during this period. If your daughter is happy with it, pay me for it then.

If not, I'll come and collect it, and tidy out your stable."

This second dealer knows the pony is a good pony, the customer has a trial period and there's nothing to pay until completely happy.

The dealer also understands that once the daughter gets the pony home, she's going to fall in love with it. You may have heard the old sales method of the "Puppy Dog Close"?

I guess in this example will call it the old "Pony Close".

Once his daughter gets that pony home, do you think she'll want to give it back?
No Way!

Even if the price was more at $1500, which one do you think the parents would choose to buy from?

That's the power of great risk reversal.

Proper risk reversal gives you the competitive advantage to outsell your competitors many times over.

The second offer to the man looking for the pony...Made it a no brainer. Here's my question for you...

If you do have a guarantee in your business now, is it really taking most of the risk away from your customers?

Now, you may be wondering what else can be added to increase responses?

Theirs is a lot and we can discuss some more later, but to name a few...

Whether you're selling online and or offline, add what we discussed today and...

Really know your target market, have the right targeted-direct response copy created, have your message placed in the right medium or place, have a guarantee in place and test...test...test.

If don't have a guarantee or a good risk reversal, what could you do to immediately start making your customers not only feel safer, but also feel that the risk is all on you?

You think on that and I'll catch you next time because I have to go clean up after this pony running around my office.
#business #guarantees #marketing strategy #ponies #reversals #risk
  • Profile picture of the author serbyy2
    nice strategy fasteasysuccess, useful info!
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  • Profile picture of the author misterme
    Originally Posted by fasteasysuccess View Post

    Now, compare this risk reversal strategy or guarantee from the second dealer. The next dealer says...

    "It's important your daughter is happy with her pony in every way. Please take the pony, let your daughter look after it and try it out for two weeks. I'll provide you with the hay to last during this period. If your daughter is happy with it, pay me for it then.

    If not, I'll come and collect it, and tidy out your stable."

    This second dealer knows the pony is a good pony, the customer has a trial period and there's nothing to pay until completely happy.

    The dealer also understands that once the daughter gets the pony home, she's going to fall in love with it. You may have heard the old sales method of the "Puppy Dog Close"?

    I guess in this example will call it the old "Pony Close".

    Once his daughter gets that pony home, do you think she'll want to give it back?
    So now how do you analyze this to know which factor made the sale? Was it the risk reversal? Or was it the puppy dog close? And how did it then make it so a customer will "easily spend more"?
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    • Profile picture of the author Jerry Belcourt
      A good guarantee with risk reversal is very effective.
      In the case of the pony example, I would say that
      the law of reciprocity "kicked" in too

      And, of course the ole' irresistible offer...
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      • Profile picture of the author Jamrok
        I see this working briliantly for products; how would you have this work for services?
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      • Profile picture of the author misterme
        Originally Posted by Jerry Belcourt View Post

        A good guarantee with risk reversal is very effective.
        In the case of the pony example, I would say that
        the law of reciprocity "kicked" in too

        And, of course the ole' irresistible offer...
        Cialdini's principle of Reciprocity is based on giving someone a gift with no strings attached, no expectation of getting business from it.

        I don't see that as the circumstance here. I think it's implied that if the buyer likes the pony, they're expected to buy it. It's the only reason the free trial with hay offer's being made. It's not a freebie gift.
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  • Profile picture of the author donoutlet
    nice good info, yes was wondering the same thing, what if it is for services already rendered?
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  • Profile picture of the author IndiForce
    What would be a great risk reversal offer for a website design business?
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    • Profile picture of the author Colm Whelan
      Originally Posted by IndiForce View Post

      What would be a great risk reversal offer for a website design business?
      If you were to offer the "Design" portion on an No Like No Fee basis that would be a great risk reversal offer from a client POV. However your client qualification process would have to be almost flawless so as not to have you spending large amounts of time or tyre kickers.
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  • Profile picture of the author guypeleides
    While I'm all for risk reversals, it doesn't work as well in some service markets, especially offline skilled trades where the cost of someone taking advantage of your guarantee can be extremely high both legally and directly. Use carefully when you have a high end product you're willing to stand behind.
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  • Profile picture of the author fasteasysuccess
    This strategy can and actually is used in tons of fields and niches. To avoid people taking advantage of you in certain fields, then you can simply use qualification to not only screen out serious from non-serious, but also use it to make sure the clients you work with are the qualified prospects that know that you hold value and they want to pay for the value.

    The role of risk reversal doesn't always have to be about a money-back. The easiest way to explain it...

    You're simply eliminating all doubt and fear and standing behind what you offer (which everyone should do anyways or not offer it).

    This example wasn't about the law of reciprocity, it combined risk reversal which was about eliminating all hassles and risk from the deal and the old try before you buy making it a no-brainer.
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  • Profile picture of the author PaulintheSticks
    I just got pitched a mastermind membership and a simple lead gen software for two payments of $1500 and then $197/mo. In the WF market, the software is probably worth $97.

    If everything they claimed was true, I would buy in a heartbeat. The problem is, there's no way for me to know other than 2 testimonials they provided. And there was absolutely no guarantee so of course I didn't buy.

    My question to them was, if you are so confident in the results I'll get from using your product, why is 90% of the risk on me? Why would I want a refund since I would lose the software and my membership. Well they dropped the payments to $500/mo. Still too risky. Plus it was a hard sell which was a turn off to me. Why not offer a 3 day test drive since that's all a person would really need?

    I don't think its a scam because its a reputable company and maybe they rely on their reputation to reduce the perceived risk but it wasn't enough for me.
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