MODERN MARKETING
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 think that’s a great
guarantee; 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 it can be called the
“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 increase customer buy-in.
Whether you’re selling online and
or offline, really know your target
market, have the right targeted
direct-response copy, have your
message placed in the right medium
or place, have a guarantee, and test…
test…test.
If you don’t have a guarantee or
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?
Eric Barton is the author of “Fast
and Easy Steps To Marketing
Succe$$”, a member of America’s
PremierExperts, featured radio guest,
marketing strategist, SEO specialist,
direct response copywriter and serial
entrepreneur, who lives by the saying,
“The True Definition of Success Is
Helping Others Succeed”.
November 2016
ModernBusiness
13