The #1 fear facing marketing teams today—the refund—and how to eliminate it. By using age-old tried and tested principles

Refunds are inevitable in any business. 

Fortunately, however, you don’t have to suffer from refund-hell once you know how to use these age-old, tried, and tested principles I discuss in this LinkedIn article.

Specifically, you’ll learn how to better understand the psychology of the market. You’ll also find out how to make your prospect feel safe. And you’ll discover a surprising truth as to why few marketing teams know how to craft a solid, bulletproof guarantee.

So, without further ado, let’s dive in with a question … 

How solid is your Guarantee? I mean, really…

There must be some big reason why some sales campaigns do really well, and others do poorly. Said another way, if two equally skilled marketing teams write sales copy for a similar product, why does one product or solution receive few refunds and another more refunds than they’d care to admit?

The answer lies in the guarantee.

But the truth is, every business worth its salt fears the guarantee. It’s surprising to note that few marketing teams know how to craft the perfect bulletproof guarantee. Because they don’t understand just how powerful the guarantee is and how it’s packed with selling power when done correctly.

But you see…

Without risk, there is no reward

In the selling industry, psychology is the number one thing every savvy marketing team must keep in mind when creating a new marketing campaign. 

Because the mind of the market dictates which campaign will be a rip-roaring success and which will bomb. Of course, it would be wonderful to own a crystal ball and see what is going on in the target market’s mind at any given moment. 

But savvy marketing teams understand that in any relationship or transaction, there is risk attached to it. Because without risk, there is no reward. 

Let’s face it, marketing campaigns bomb. There is no getting around it. Although, there is a rich well of information to be gleaned from failed campaigns. 

That’s …

Why taking all the risk is the smart thing to do

When selling a product or service, savvy marketing teams can mitigate the fear of buying their product or service if they assume ALL the risk and the prospect none.

That is the most brilliant way to go with any guarantee. If the marketing team is unwilling to take a significant risk, the prospect will feel that and will either shy away from dealing with that company altogether or ask for a refund shortly after the sale.

But savvy marketing teams know that there is no reward without taking a considerable risk. 

But how much of a risk are marketing teams willing to take?

How about firstly… 

Knowing what’s really going in the prospect’s mind

Savvy marketing teams know that the biggest risk for their prospect is believing what they promise the product or service will do for them.

In essence, savvy marketing teams ask the reader to have faith that what they’re telling her is true —sight unseen—that she’ll experience the numerous benefits the marketing team promises within the sales copy.

But can you blame her? 

Savvy marketing teams appreciate that their prospect has experienced many disappointments at the hands of products and services promising the moon and the stars. 

Only to find frustration and heartache instead. Even if savvy marketing teams happen to have lots of other proof and credibility elements present—trust can so easily be lost. 

And remember…

Your prospect is savvy too

She knows that the marketing team is trying to sell her something. She understands that every salesperson puts their best foot forward. She’s savvy enough to know ‘proof’ can be fudged around the edges a little.

See it from her perspective. 

What happens if she buys the product and it’s not what she expected it to be? What then? The prospect has had all her hopes revved up only to have them dashed—again.

This is a constant dominant fear anyone making a buying decision faces. 

Heck, you’ve experienced it. We all have. I have purchased numerous training programs over the years. All excited I start the new program only to find it contains not what I was promised.

So to build trust, make sure … 

She doesn’t risk one cent—ever

Savvy marketing teams know that when they keep this fear of purchase front of mind, they can confront it head-on and make the prospect feel safe in making their decision by actively reducing the risk factor in buying their product or service.

This truth holds true from the beginning of advertising. The number one function of the guarantee is to reduce the risk. To promise the reader that she can get her money back, no questions asked.

But as necessary as that is, it’s not the only thing that the guarantee needs to pass muster with the prospect. Savvy marketers know that it can often impact their guarantee copy by two or more times when they put this simple component in place.

It is by… 

Standing bold and proud on their promise—makes her feel safe

That’s right!  Stand confident. Savvy marketers stand bold and proud of their promise. They are sure they can deliver on what they say they can provide. 

Savvy marketers understand that the guarantee is the perfect place to express absolute confidence in their product or service. Most companies shy away from doing that, but it’s a mistake. Huge!

Prospects instinctively know that something is off if they are unwilling to stand by what they are selling. 

She thinks to herself;

“What’s going on?” 

“Don’t they have confidence in their product?”

“Hmmm, who is to say they are telling the truth?”

This all goes on subconsciously in her mind. 

And she has a point. 

But savvy marketers know that when they are super sure of what they are offering and what they can do, they can bet on it working for the prospect, like a kind of dare. 

In other words, they dare the prospect to try it for a while to see what they are saying is true. They are willing to put their money-where-their-mouth is. That’s powerful. 

And that’s precisely why it can be far more persuasive than even the most vital credibility elements.

Savvy Marketers know that proof and credibility elements tend to make their prospect feel safe. That she can trust what the marketing team is saying is actually true. 

The guarantee is arguably the most supreme credibility element because of its bold ability to create feelings of trust and security. 

But you may be wondering…

If we offer an “Unconditional, 100% Guarantee, why won’t she jump at the chance to buy from us?”

Because she has many feelings, thoughts, and desires going through her mind while reading the guarantee. She not only feels the risk very strongly, but she also hates hassle and confusion. 

Savvy marketers understand that the prospect knows the same as they do. 

That not all “Unconditional, 100% guarantees” are equal. 

She knows if she is dissatisfied and can get her refund, she probably won’t. She knows she may forget, get busy, or avoid the hassle of asking for it altogether because she is unsure of what the response to her refund request will look like. 

She’s thinking.

“Is the guarantee really a no-questions-asked guarantee, or are there strings attached?”

All this is a hassle that the prospect wants to avoid at all costs. She wants nothing more than to have a nice easy life as uncomplicated as possible. 

Heck, I have a small heater that malfunctions. I contacted the suppliers, and I still have not heard back from them six months down the road. My time is too precious to be chasing the company around to get a refund. 

Have you felt that sometimes? I bet you have. We all have.

So when you next go to write your guarantee, keep your prospect in mind.

Make her feel safe and secure. Put your money where your mouth is. Make a bold stand. Dare her to buy the product or service and try it out for a little while. Assure her that when you say she can have a refund, you really mean it. 

Show her what the refund process looks like.

Promise her that there will be no questions asked. 

Make her life as easy as you can, and she will be a loyal customer for years to come.