Delivering a service you can bank on – the importance of a guarantee
Over the past few months, we’ve looked at how you can find and develop a niche to benefit your business.
We’ve learnt that by differentiating yourself from the competition and providing customers with a unique, high quality proposition, you won’t have to compete on price, improving profitability and growth in your business.
In this post, we look at how backing up your products or service with a strong guarantee can help strengthen your niche, and further benefit your business.
What makes a good guarantee?
Good guarantees provide a clear, value-added proposition that helps to set your business apart from the competition and remove any doubt the customer has about buying from you.
Whilst a simple proposition, like offering a no quibble, money back guarantee on your products or services is a good start, doing something unique will have even more impact and value.
A great guarantee needs to go above and beyond what customers expect from a business in your industry, and help to distinguish your business from the competition.
Offering something that no-one else has done before, or that sets a new standard in your industry will help to add value to your products and services, whilst further developing your niche.
When it comes to writing the guarantee, clarity and transparency is key. Keep it short, simple and easy to understand, so that customers know exactly what you’re offering.
What a guarantee says to your customers
Having a clear, strong guarantee says a lot about your business to potential customers.
One of the biggest things that prevents customers from buying is doubt. For your customers, a guarantee helps to reduce the perceived risk of investing in your products or services, removing any doubts and barriers to purchase, whilst providing them with the confidence they need to buy from you.
A guarantee will also help to build trust in your business, adding weight to your marketing claims, and telling your customers that you are an ethical, trustworthy company that wants to provide real quality and value.
How your business will benefit
Offering a guarantees an integral part of building strong relationships with your clients, and developing a strong, loyal base of customers. It’s also a great way to develop your reputation as an honest and genuine organisation that’s worth doing business with.
It’s an important part of building a niche for your business, helping to differentiate your business and stand out from your competitors in the minds of your customers.
Providing a guarantee will also help to ensure that your business maintains high standards when it comes to the quality of your products and levels of service, to ensure that you don’t have to fulfil the terms of your guarantee very often!
Ultimately, a guarantee will help you to drive sales and increase profitability.
Many business owners shy away from providing a strong guarantee in the fear that their customers will exploit it. The reality is that if you’re offering a quality product or service, then only a tiny proportion of customers will take advantage of it.
Even if a small proportion of your customers do take advantage of your guarantee, in the long term, any negatives will be far outweighed by the positives in terms of improved reputation and sales.
If you’re still concerned about people taking advantage of your guarantee, you can always add limitations, like time limits, liability limits or usage conditions to help prevent abuse.
However it’s important to remember that trying to add too many caveats to your guarantee, like excessive small print, or reams of terms, limitations and conditions will only weaken your proposition.
How Coach Pam can help
If you want further information or help in creating a strong guarantee, or tailored support on any aspect of running a business, get in touch with Coach Pam on 07540888016, or email firstname.lastname@example.org today.
Next week, we’ll be looking at teambuilding, and how you can improve productivity in your business through effective office design.