Customers are searching for solutions to problems and it is important that you provide that solution and that you will help them get the best out of the product showing that you care about the outcome for the customer. Applying the risk reversal principal will turn indecisive prospects into satisfied customers.
Even when people desire what you have to offer and want to say yes, fear can have them flee from the buying decision. The reason people do not buy or that they come to that buying decision and walk away, is that they do not want to make a mistake. If in your proposition you take that risk away from the customer, many more will be saying "yes". Once they try your product, and it performs as you say, most customers will keep that product and continue buying again and again. So removing the risk will improve your sales dramatically by providing more customers, bigger transactions and a higher frequency of purchase. So how do you overcome this problem? One way is to simply assume the risk yourself so that the customer is able to complete the buying decision without any worry at all. You know, for instance that your product will provide a minimum level of service/performance, so guarantee it. In this way you assist the customer in making that buying decision by eliminating the possibility of them making a mistake. If you are not prepared to guarantee your product to your customers, should you be selling your product in the first place? It is necessary to understand that there are essentially five different types of risk that the customer faces when dealing with a purchase. What you want to develop is a proposition (a risk reversal guarantee) that deals with all of these types:
1.Monetary Risk
2.Functional Risk
3.Physical Risk
4.Social Risk
5.Psychological
Risk In order to address these risks correctly look at your products and define what those risks are in relation to them. Then develop a risk reversal proposition which deals with those risks. Indicate this with statements that specify the result they will get and what you will do if they do not achieve this outcome.
The implementation of a risk reversal does not necessarily mean ¨I’ll give you your money back.” This is such a common guarantee that it really doesn’t hold much credibility with the customer. Most buyers expect guarantees so you need to offer one that is superior to the run of the mill. A much more effective guarantee is to support a customer in the execution of the product. So you will engage directly with them, you will provide additional services and capability to assist them in achieving the outcome with the product. Who would you buy from? The vendor that was able to assure you he was going to provide you a high level of service or the one who said “If it doesn’t work, bring it back and I’ll give you your money back”. Customers are searching for solutions to problems and it is important that you provide that solution and that you will help them get the best out of the product showing that you care about the outcome for the customer. This type of guarantee will make you look favourable in the eyes of undecided customers. When dealing with customers coming to a buying decision, you need to be clear about the proposition you are offering, but you also want to handle that buying decision and the risk the customer is assuming. Applying the risk reversal principal will turn indecisive prospects into satisfied customers.
Lessons Out of Africa - The Importance of Mentoring
Since mentoring and coaching are not ingrained in our culture, we can take one of two paths. The first is trial and error. We can learn as we go, building a base of experience needed to be successful in our own right. Many people take this path and get there but the majority of folks on this path never achieve their dreams. The second "smarter" path is to find somebody who has been there before and ask them for guidance. We need to be taught how to be successful in the modern world, by people who are successful themselves. This is where mentoring and coaching comes into play.
Creating Copy That Conquers
You need to design your ads to get noticed. You want them to be read. To do this you want the consumer to perceive the ad as relevant to them. You can achieve this by using the copywriting principle referred to as AIDA - Attention, Interest, Desire and Action.
Bad Judgment Can Be Profitable For Your Business
Bad judgment may be the most profitable thing you ever do in your business, as long as you learn from the experience. When you make bad calls, you nearly always pay. In some cases, you pay very dearly. How do you know how much your bad judgment cost? How do you know how much your subsequent good judgment produces?
