Do You Need A Guarantee To Get More Customers?

When you want more customers guarantees can be a way of reducing customer stress. more customers with guarantees

They reduce the anxiety of the unexpected happening. This means your customers do not have to play the mind games of “what if something goes wrong”.

And this helps simplify the buying decision for your customers.

However not all products or services need to offer guarantees. It depends on what you sell, market factors and the cost to your business.

Here are some factors to consider.

Types Of Guarantees

Before you jump in and offer guarantees you need to decide what type you are offering.

Remember the more you add the more complicated it can be for your business.

A price guarantee means that whatever the circumstance the price they pay is what you offer.

A timing guarantee is you will deliver at the time you say you will.

A result guarantee means you will deliver the results agreed upon with your customers.

Why Offer A Guarantee?

The question to answer – is the offer of a guarantee important in the buying decisions of your customers?

A flat price guarantee is of value to those who are on a budget whether it is a consumer or business customer.

A timing guarantee can be important for those who place their time high on a value list.

A service level guarantee could be important when delivery is a make or break deal. For example if you offer products online then a guarantee of when and how they will receive can ease their minds of online buying.

Guarantee Symbols

Sometimes your guarantee can be simple symbols, such as a bank’s seal if you use their merchant services.

The symbols need to be easily recognised by your customers. And often these are seen as relieving any anxiety they may have when money is involved.

A key point with guarantees is to make sure you have a valid reason for offering them otherwise you may find they cost your business. Often it is the simple things you do that helps your business grow. 

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27 Responses to Do You Need A Guarantee To Get More Customers?

  1. Thanks for the post. It’s given me a few things to think about as I am starting to add freelance editing services to my website.

  2. Good and solid advice Susan. If and when you should offer a guarantee depends on what you do.

    Watched a documentary recently on Swedish television about people who had had laser liposuctions and had completely ruined their bodies. The result were grotesque to put it mildly. The result of the television program was that the Swedish government has regulated the industry and companies carrying out laser liposuctions will have to give a guarantee to their patients.

    • That is interesting that the government would take that action after a television program. It must now give patients peace of mind. I learnt on the weekend that because of a television story retailers now give a replacement guarantee for computers instead of service guarantees. Much simpler for consumers.

      Thanks for sharing the Swedish example.

  3. I just called in for pizza. Dominoes here has a time guarantee – bet they do in USA also? To cut a long story short it is festival season and there is bad traffic, so they withdrew this time guarantee and just said they would do their best to deliver asap.
    Understandable, but why have a time guarantee then for days on which it is easier to deliver? Best not to have this policy at all.

    • Hi Lubna,

      I believe they used to have the 30 minute delivery but not anymore. I think it was because of an accident and speed trying to deliver within the 30 minute window. I agree with you that it is better not to have the policy at all otherwise it is just confusing to customers.

  4. I think the first hurdle is pricing your product or service correctly. I think we in the service business often undervalue or work and underestimate the time it will take to complete a project. However, if you are trying to attract a new client, you may make a marketing investment in the price for the first project. But you should let them know that — it’s a test drive but if you provide excellent work then the next project will be at your usual rates. If they are not willing to pay that, then it may not be a client you want for the long term. You can’t guarantee low prices forever!

    • Hi Jeannette,

      I agree with you about service businesses and undervaluing and I think part of the problem is they offer me too services without any clear difference. What do you think?

      • Susan — it’s true. There are so many people selling marketing and PR services that are very similar. But to build a brand you need to take into account your entire skills set, past experience, have an outstanding portfolio and testimonials from clients who are willing to rave about your work.The client also needs to believe that you approach a project strategically. I’m working on a project with a designer who was the highest bidder but the client liked his strategic approach to the assignment. He wouldn’t take less money because he felt he was providing extra value. So, you’ve got to believe in yourself and be willing to step away from a project. Easier said than done if you really need the money.

  5. Hi Keyuri,

    I’ve learned something new here, which I could use when I’ll be branching out to sell my own products or those of others. This would be costly if my products are below par. So, I should strive to offer high-quality products. When I do, then I’m also building my online integrity.

    Thanks for a significant post.

  6. In most cases, a guarantee is a good thing. But in some cases a guarantee is counterproductive. In SEO, it is a sure sign of a scam – nobody can guarantee anything that involves competition for a limited number of sports. In writing, it is a sure way to lose big money, because there are so many unstable people wanting to tell their story, and then deciding that no matter what you write, it’s not good enough. When the weather is involved, there can be no guarantee. Or animals. Or children. Or a human element.

    • Hi David,

      I am glad you brought up SEO, because people are still falling for it and waste their money. You summed it up well and only yesterday I was talking to a writer who wanted to give a guarantee because he read it was the thing to do. Luckily he rethought what was at stake.

      Thanks for your comment David.

  7. These are all excellent points. Any marketing strategy should certainly be cautious of how a guarantee could be a costly endeavor.

    In my field of life and parent coaching, I was strongly advised not to offer any guarantee. The results of this type of service are dependent on the efforts of the client. If a client is disengaged, and then asks for a refund, the coach will sink quickly! The equivalent would be a personal trainer who offers a guarantee for a client who wants to lose weight but refuses to get on the treadmill.

    • Hi Keyuri,

      Thanks for sharing about coaching and great example of a personal trainer. I agree not guaranteeing with coaching is right as you can’t control the client, their attitude or behaviour.

  8. Sgar advise and all are good points that can be helpful for both a business and a potential customer. The moneyback type of garauntee worry some businesses uneccesarily because they fear abuse. That is always a risk but not to the extent they fear. In the end these are all great tools to help grow new business and worthy of investigation. 🙂