In Episode #437, Eric and Neil discuss how to create an irresistible product or service guarantee. Tune in to learn what some of the big brands are doing to provide top-notch service guarantees and how you can effectively implement your own.
Time Stamped Show Notes:
- [00:27] – Today’s topic: How to Create an Irresistible Product or Service Guarantee
- [00:38] – The baseline is to have a 30-day money back guarantee
- [00:55] – One of the craziest ideas Neil has heard of is having double money back guarantee
- 01:22 – With Nordstrom and Zappos, you can return an item as long as you have a receipt
- 02:27 – Amazon is committed to giving the best customer service
- [02:37] – Eric bought a TV from them that wasn’t in the best condition when it arrived; Amazon sent a new one without asking for the first TV back
- [03:06] – Your guarantee should reflect the quality of your product or service
- 03:45 – Marketing School is giving away 90-day FREE trial of Crazy Egg which is a visual analytics tool
- 03:55 – Go to SingleGrain.com/giveaway to get your FREE copy
- [04:00] – That’s it for today’s episode!
3 Key Points:
- A 30-day money back guarantee is the baseline for all guarantees.
- If you have an awesome guarantee, it should reflect the quality of product/service that you have.
- Some tend to abuse guarantees, so you must trust in your product or service quality.
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The post How to Create an Irresistible Product or Service Guarantee | Ep. #437 appeared first on Marketing School Podcast.
Full Transcript of The Episode
Eric Siu: Welcome to another episode of Marketing School. I'm Eric Siu.
Neil Patel: And I'm Neil Patel.
Eric Siu: And today we are going to talk about how to create an irresistible product or service guarantee. So I'll get this one out of the way quickly. This one is, I'm setting the baseline right here, every single information product that you're seeing online now, the baseline is you have to have at least a 30 day money back guarantee. That's the baseline, so we're going to set the baseline right here. But, what makes something irresistible? What have you seen around the space Neil in general? Around products or services?
Neil Patel: What I've seen that's really crazy is you pay for it, if you don't get the results back and you do everything, we'll not only give you your money back, but we'll give you double. That's the craziest that I've seen, and that works if someone does everything. Because, if you know your product and service is really amazing, and you're promising X, Y, and Z results. If they do everything you know it's going to make them better off then where they are today. So by promising that it's not too bad.
Eric Siu: The example I think about, and that comes to mind immediately is Nordstrom. When I think about Nordstrom you basically are able to, as long as you have the receipt you can return at any time, from my understanding. I don't know if that's still the same thing today, but I've heard stories about people that they return things that they didn't even buy from Nordstrom, in some cases.
Neil Patel: I haven't seen that, but when I was younger child I would buy stuff ... I feel bad now. I would buy stuff, wear it for a year, and then I'd return it. Same with Zappos. Zappos has a one year money back guarantee. If shoes breaks, or whatever, and people just end up returning it. Funny enough, I feel bad for what I did when I was a younger kid, because I would return stuff after wearing it for a few years, and be like here you go here the shoes back. Now I don't ever return anything from Nordstrom's, even if it was their fault, because I feel that I abused as a child.
Eric Siu: Well that's great, but I think for most guys, most guys are just to lazy to return things like me. Going back to the example, you can bring a ... One person brought a tire back to Nordstrom and they refunded it. I don't know what happened exactly. You can read about that online. Neil talked about Zappos. If you think about Amazon, when I look at Amazon they are committed to customer service, and to me their guarantee is awesome customer service.
Basically what I did was we got a TV, and the TV came in cracked, and I reported it. They said, don't worry, keep that one, we're going to send you another one. I think it's probably because my customer lifetime value is probably pretty decently high, so they just sent me another one. In other cases I don't usually report this, but when I have issues they'll just send me another one. They don't even ask me to send it back, and that's good customer service, because if you're going to ask me to return something, you can call me a diva or whatever, I just don't want to go return it.
Neil Patel: The thing with guarantee with your product, your service is think about the quality product, or service that you're producing. If you can't offer amazing guarantee, then somethings off with your product or service, and you should work on fixing that and improving the quality. That way your guarantee can match the quality of work that you're putting out. If you're proud enough of your product and service you should be able to offer amazing guarantee.
Eric Siu: Yep. There's not much more to add around this. I think there's a lot that you can learn from the pay for performance model that Neil talked about. I think that's really incentivizing. I mean, you talked about I'm going to give you your money back plus double. That's crazy. I'd love to learn more about that in the future.
Before we go we have a 90 day giveaway. 90 day free trial, sorry, of Crazy Egg. Which is a heat mapping analytics tool, and it's worth up to $3,000, and you don't have to put in your credit card, and this is available to each and every one of you. So there is no reason not to check it out. To learn more just go to Singlegrain.com/giveaway, and we will see you tomorrow.
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