Eliminate the Risk Factor

While we are always on the lookout for exciting new products, there is a built-in resistance to purchasing from an unknown brand. If you are new to the market, you have some persuading to do. If you're a smaller company competing against a dominant brand leader, you also have some persuading to do.

Closing the sale means removing obstacles from the buying decision and winning a customer’s trust. This involves making the process easier, faster, richer, deeper, cooler, more fun, superior, and ultimately risk-free.

People usually buy the product they think they should have. To understand this behavioral insecurity, you need to understand how risk is perceived. There are essentially five kinds of risk in every buying decision:

• Monetary: Will I lose money?
• Functional: What if it doesn’t work?
• Physical: Can this thing hurt me?
• Social: Will my peers approve?
• Psychological: Will this make me feel guilty or irresponsible?

You must create the perception that your product does not carry these risks.

If you are really lucky (or really clever), your differentiating attribute can eliminate several risks in one go. Being the market leader, for example, eliminates most of them. People love adventurous new products but tend to buy them from the perceived leader. If everyone else thinks this is the best product, it must be.

Once the market’s collective mind is made up, it is virtually impossible to change it. Consider, for example, how many artificial sweeteners have fallen from grace over the years. Once you’re out, you’re out, especially if there was a risk factor attached to your product’s fall from grace (e.g., it was discovered to cause cancer in rats). Tough to redeem a brand in such a predicament.

Does your brand have what it takes to close the sale?

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