Reverse The Risk And Boost Your Profits
As a business owner or marketer, if you don't reverse the
risk in your product and/or service offerings, you're really
missing out in what can be one of the most powerful weapons
in your marketing arsenal. Risk Reversal Defined Risk Reversal, in essence, means that you, the business owner,
assumes all the risks associated with the business
transactions, and your customers none. Why Reverse The Risk? The main reason that you'll want to reverse the risk is so
that you may boost your sales and profits. Risk Reversal can easily be achieved by providing an
Extraordinary Guarantee. An example would be an iron-clad,
no-questions-asked money back guarantee. Buyers, especially Internet Buyers, are generally skeptical.
This is particularly so if they've never dealt with you or
your business before. Your credibility is in question and
the trust yet to be established. Even if they are your
existing customers, it's imperative that you employ this
powerful marketing concept of Risk Reversal by offering a strong
and extraordinary guarantee... ... Here's Why: Having a strong guarantee is one of the most effective ways
to counter the skepticism and fears of the buyers in doing
business with you. If your customers or potential customers see a guarantee,
especially an extraordinary one, they can be pretty certain
that they'll get what they're after. It shows them that you're confident about, and have a strong
belief in, your products and/or services. It also goes to show that you're reliable and trustworthy,
and if they're not satisfied with your offerings, they've
nothing to lose. The end result is that you'll dramatically boost your sales
and profits - sales and profits you would not have seen
without the strong guarantee. Here's an example: Let's say in any of your promotional campaign, you normally
sell 500 units of your product. Through a strong guarantee,
you increase your sales by 8% or 40 units without spending
any additional funds on advertising. This translates to a total sale of 540 units for that campaign. Let's say you later experience a 10% refund of the additional
sale of 40 units, that is, 4 units (10% X 40 units), which you won't. Even after the refund, you'll still make an additional
sale of 36 units just by offering a strong guarantee. These are
sales that you'll never get without the guarantee. Now you can see how a strong guarantee will boost your sales and profits. Then Why Are Many Business Owners Unwilling To Offer
Such A Guarantee? Many business owners have the misconception that people
are only concern about the price of the product or service.
Price, no doubt is a factor but only a minor one, and only
to a certain extent. If the customers want something, and
if you're able to address their concerns and fulfill what
they want, they'll gladly buy what you have to offer. Many business owners are also afraid that they'll be ripped off.
Just in case you think that you'll be ripped off by offering
guarantees, research have shown that this rarely happens as
99.5% of people are generally honest. Of course, there'll be
a few moral rejects who'll take advantage of you but the
additional customers that you'll gain will more than offset
the few that'll take advantage of you. Furthermore, very few people will go through the process of
actually returning something that they've bought, unless of
course, you've infuriated them. If you're a savvy business
owner or marketer, you should know better than to infuriate
your customers. Think about this - the process of asking for a refund is a
socially uncomfortable one; it takes confidence and self-assurance
to ask for a refund even if you're openly offering one. Now, I must add that in order for your guarantee to
achieve the objective of boosting your sales and profits,
you'll need to bear the following in mind: 1. You'll need to have a quality product and/or service
2. You'll need to address the customers' deepest frustrations
3. There shouldn't be any unreasonable conditions attached to it
4. It should preferably be for at least a minimum period of
90 days or more. An example of a strong guarantee will be: "Try out the product for a full 365 days! If it does not
double your sales by the end of the 365 days, just return
it and we will cheerfully refund your full purchase price." I believe you can see the power of the above statement.
It implies that you're so confident of your product that
you're assuming all the risks, not the customer. Once you've got over the fear of reversing the risk, you'll
be ready to offer bold guarantees. A bold guarantee sends the
message to your potential customers that "you're reliable and
your offerings are of high quality". It takes away the risks
associated with the purchase of your products and/or services,
and it also lends you credibility. As you can now see, risk reversal is one of the most effective
ways to boost your sales and profits. Put this powerful
marketing concept into practice immediately. Spend time on
creating a sound and powerful guarantee, implement it, and
you'll see your sales go through the roof. About the Author Copyright 2005 by Larry Lim, MarketingSphere Larry Lim is a practising marketing strategist and tactician who dishes out highly effective marketing strategies and tactics that will enable you to successfully start and grow your business on the Internet. His Internet Marketing
Strategy website is jam-packed with internet marketing
secrets and softwares that will skyrocket your sales, and
shoot your profits through the roof.
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