subject: The way to Use Cash Back Guarantee to Drive Sales in Your Retail Business [print this page] The way to Use Cash Back Guarantee to Drive Sales in Your Retail Business
There are typically three varieties of money back guarantees used in retail:
Cash-Back Guarantee: This is where you promise to give your client their money back if the product does not work as advertised or promised by you.
Satisfaction Guarantee: This is broader than the primary - it is a promise of a refund if the client is not satisfied.
Value-Protection Guarantee: This is often lazy marketing where you say you'll give a client their cash back if they realize the same item cheaper elsewhere. Whereas it's lazy, it's effective is saying that you just trust your prices.
A cash back guarantee is useful in the retail scenario where a business desires to show that they are prepared to back their products. If promoted properly, it will ease customers and allow them to see that they need nothing to lose in doing business with you.
A guarantee is particularly useful in an exceedingly highly competitive area or where you're dealing with customers you have got not seen before and will doubtless not see once more apart from this one off transaction.
From a pure business performance perspective, the money back guarantee has got to be concerning driving business sales. To try and do this, it needs to be simply understood, offer a purpose of difference and build customer confidence.
Some businesses, when deciding to supply a guarantee, create it too complex. This can dilute the value of a guarantee to some extent where it offers no real price to the business. Establish easy and clear rules around the guarantee. Defend the business but conjointly entice your customers. Whereas the line is okay, it must be navigated to deliver the business what it seeks whereas at the same time giving customers the comfort they seek.
A point in time is very important in your guarantee offer. Create the life of the guarantee reasonable. If it's too short customers will not trust the offer and if it's too long it might expose the business. The life of the guarantee can rely on the type of guarantee and also the products. For example, if it's a worth guarantee, this could moderately have a life of no more than a week. If the guarantee is for product quality, it ought to run for the equivalent of a manufacturer's warranty period.
Once you have got set your rules and processes around providing a cash back guarantee, ensure that each one employees are totally trained and then set regarding promoting the offer. Guarantee that every one selling is evident, targeted and consistent.
If you're not positive about the usefulness of a cash back guarantee in your retail store, run a shot for some months and assess the results before making a longer term commitment.
