DAY #13: TAILORING YOUR GUARANTEE AND RETURN POLICY
our guarantee and your return policy are your most powerful weapons against consumer doubt. When it comes to purchase decisions, doubt is a big decision factor. Customers might think the price is right, they might like your brand, they might like your product – but, at the end of the day, they just don’t know for sure if the product will work for them. They’re afraid of making a bad decision. They’re afraid of wasting money for nothing.
A powerful guarantee can remove that doubt. It can let people make a purchase decision without letting uncertainty get in the way. They can decide to buy, because they know that if they end up not liking it, they can simply get a refund. They can make decisions risk-free.
The Stronger the Guarantee the Better
Business owners are often afraid of making their guarantees too strong. They’re afraid of an influx of refunds. In practice, this almost never happens.
In the early days, Zappos had a standard return policy. When they implemented their 365 day return policy, they saw a significant boost in conversion rate. Yet, they were terrified that on day 364 they would get a massive influx of refunds. The refunds never came.
They found that the longer they made the guarantee, the better their conversions were. If a return period was short, like 30 days, people tended to feel like they had to make a decision quickly. If it was long, like a year, people felt like they have as much time as they need – and often they just never get around to deciding (or returning.)
You don’t have to make a big jump right away. Zappos didn’t go from 30 days to 365 days in one jump. You can do it one step at a time – from 30 days to 60, then to 90, then to 6 months, while collecting data along the way.
Do you have to increase your refund length? Absolutely not. What’s important is that you ensure whatever your policy is, that it meets your buyer’s needs while increasing sales.
“If You Don’t Have a 20% Refund Rate, You’re Not Marketing Hard Enough” – Gary Halbert
Gary Halbert was one of the world’s most successful direct response copywriters. He wrote the most mailed piece of direct mail in history, which mailed to over 600 million people over the course of 30 years.
When it came to refunds, Halbert had an interesting view. He viewed a low refund rate as a bad thing. It was an indication that he wasn’t marketing hard enough.
When Domino’s pizza went from your average pizzeria to “Hot Pizza to Your Door in 30 Minutes or It’s Free,” did they have to give out more refunds? Absolutely. Their refund rate increased dramatically. But so did their sales and their profits.
A low refund rate could mean you’re not being aggressive enough with your marketing. Offer a generous return policy. Let the refunds go up – as long as your sales increase as well.
- Work on improving your return policy.
- Is your guarantee concise and targeted to your customer’s needs?
- Do they need more than 30 days to test out a product?
- How do they return their purchase for a refund?
- Is your guarantee and refund policy clearly displayed on your sales pages?
- If you need some ideas, download these 15 persuasive guarantee examples.
What We’ve Covered
Day #1: Examine Your Audience and Your Core Offer
Day #2: Optimizing Your Call to Actions
Day #3: Improve Your Lead Forms and Increase Signups
Day #4: Your Headline – Your Page’s Most Important Sentence
Day #5: Keep Attention With Strong Transitions
Day #6: Web Design Tips for Better Conversions
Day #7: Reduce Shopping Cart Abandonment by Improving Your Checkout
Day #8: Boost Conversions by Managing Expectation and Relevance
Day #9: Master the Art of Creating Urgency
Day #10: Use Video to Boost Trust and Conversions
Day #11: Add Social Proof to Your Sales Process
Day #12: Accessibility Makes You Real (and Improves Sales)
Day #13: Tailoring Your Guarantee and Return Policy
Coming Up Next
Day #14: Getting Started With A/B Split Testing
Day #15: More Ideas for Better Conversions