Many businesses sell their products online and offline on the basis that they offer a money back guarantee, assuring their buyers that they will not go wrong with their purchase. This works very well for many retailers especially online as your buyers are not able to feel or touch the product, and they need that extra assurance to convince them to buy your product.
Money back guarantee stamps and assurance can work in a positive way and in a negative way for your business, which i have outlined below:
Advantages of Money Back Guarantee:
- Great way of influencing customers
- Good call of action and motivation, encourages your customers to buy now
- Gives your buyers a peace of mind when they buy, as they know they can return and get their money back anytime they like.
- You build credibility
Disadvantages of Money Back Guarantee:
- If it's over used your buyer can start to get suspicions about the product.
- There is a risk that your customer will return the goods.
- Money Back Guarantee does not always offer 100% satisfaction to your customers.
Overall, I if your product is good and your service is excellent, there is no harm offering your customers Money Back guarantee Satisfaction, as this will convert more instant sales. Only offer this if you know that your customers will not return your goods, and this can vary from business to business.
Other types of guarantee business generally offer:
Satisfaction Guarantee: This is just telling the customers that they will not be disappointed.
Price-Protection Guarantee: This will assure your customers that you will not increase your prices couple of months down the line. Especially when they are buying a subscribed service.
On-time Guarantee: This will give your buyers a peace of mind that their services or goods will be delivered on time without any delay.