I would like to create an innovative way to offer a guarantee on some of my services, including K-12 online courses. The problem is, the biggest challenge isn’t necessarily with the utility or strength of the guarantee, but the *appearance* of that utility. Thus, innovation. (Though I don’t wish to belittle my audience–I just think people are busy, and assume or skim a bit too often–myself included.)

I wanted to thank you for your thoughts and response to my comments. I checked out the Lands End guarantee and I loved it! They returned a car purchased from them in 1984, and refunded the customer in 2005. Now that is commitment.

Since, I made that comment I have been doing even more research and thinking regarding the guarantees we plan to offer.

I have been kicking around the idea of “6 months, no questions asked guarantee”. I’ve also been looking into other service oriented offers, such as “free shipping both ways”, and the most aggressive loyalty programs on the planet.

I’ve decided that during the process of developing these service related guarantees and policies, that I will ask my visitors what they would like to see from us. Do they want “free shipping”, “next day service”, no questions asked guarantees, loyalty and rewards programs, or some service that I have not even thought of?

I am getting more and more excited about this idea. If you could, as a customer, decide how the company you purchased goods from treated you, I am convinced this is an incredible way to build loyalty and overcome resistance to purchase or buyers remorse.

I want to truly understand my customers and their needs. After finding out what they want, my plan is to deliver all of that and more. Not just the most popular requests.

I have my work cut out for me, but I am excited about the possibilities.

Thanks again for your thoughts.

Travis

I read many of the comments relating to your price guarantee, but one in particular, from Travis, prompted me to reply. Travis writes, in part:

“. . . I am toying with the idea of some fairly aggressive guarantees for my products and I _love_ this idea. However, my partner (read: wife) is concerned about the financial burden/risk by these guarantees. I am convinced the guarantees will actually decrease returns and increase sales.”

He’s right. At least as regards returns and sales. When I started my own consulting practice, I was looking for a way to establish a point of difference, a particularized form of a USP (Unique Selling Proposition for those not into acronyms). Also, I wanted to inspire confidence in my newly-created practice, because, to the world that didn’t know me all that well, hiring my firm might be perceived as a risk (i.e. who are you, I don’t know you, what’s your track record, blah blah blah).

I remembered the Nordstrom guarantee, of course, but I also remembered that one of my favourite companies, Lands End had a guarantee that I loved, and had NEVER used. It went like this: “Guaranteed. Period.” In fact, I loved it so much that I wrote the company, and the then President, the Late Gary Comer, and told them I was ripping it off, but that I would always give them credit for it, as I’m doing here now.

Long story short, I’ve maintained that guarantee since my practice started, and, to date, not one single person has ever asked me to honour it.

For the record, there will be a very small percentage of people you can’t make happy. And, having expanded into consumer market research, we’ve learned that the “hit rate” will hover somewhere between 3 and 5%. But you can build that in to your cost formulation and keep it manageable.

One caution. . .having an absolute guarantee forces you to be vigilant, and hyper-committed to first rate customer/client service. You have to be willing to make every customer happy if it’s at all within your power to do so. And you have to lead with it.

It’s really not about clever words, or timing, or promotions, or even just basic execution, although all those things, and more, are important. It’s about sticking to your word. Just doing that, and that alone, will make you stand out, not just from your competition, but from most businesses that are out there. Pretty powerful stuff.

Travis’s business partner’s concerns aside, such a guarantee would absolutely inspire confidence in me, even if he ends up sleeping with the dog for a while.

I look forward to hearing you announce it when he launches.

Warm Regards,

James.

Now, on to guarantees. Plenty of folks will tell you to offer a convincing guarantee. Few know how to give a great example. You did both and demonstrated an expert (and respectful) soft sell at the same time.

What I like most of all is the care you take to identify what I call the “just-right client” and to help those who aren’t make other choices.

I wish you the greatest success.

Molly

I am starting a new product based website this month, and I am incorporating a lot of your ideas into the product launch, the blog, the website, identifying customer needs, etc, etc. I’ll keep you updated on its success.

So let me get this straight. Your guarantee has a maximum exposure to you of the sale price of the guide?

I am toying with the idea of some fairly aggressive guarantees for my products and I _love_ this idea. However, my partner (read: wife) is concerned about the financial burden/risk by these guarantees. I am convinced the guarantees will actually decrease returns and increase sales.

I’ve already signed up to receive your blog via RSS and will sign up via email so you can count me among your small army.

Thank you for your time, efforts, and thoughts.

Travis

You’ve gone about this the right way, by offering content first and then coming out with a legitimate product rather than the other way around. I can’t wait.