Q&A [Offering Guarantees / Refunds]
I have picked this question as this is a something I get asked quite frequently and it came up again recently in conversation with one my coaching clients, who offers online as well as face-to-face services.
Q. Is it really is worth offering a refund or guarantee or is this is just a huge hassle to the business?
1. Whilst there are a small number of people who will inevitably play the system, the majority, in my experience, will only ask for a refund if they genuinely think the product doesn’t work for them and their needs.
2. For me, giving clients a guarantee provides confidence and assurance – that you are not hiding behind your products and services and speaks to your integrity.
3. Knowing your ideal client and their needs will ensure you avoid this mismatch, wherever possible. Additionally, pre-qualifying them (e.g. – webinar, free event, questionnaire, strategy call) before the sale will also assist with ‘fit’ to your products / services.
3. Being really transparent about the type of refund (e.g. – 30 days etc depending on the product / service) and what they need to do in order to qualify for the refund (e.g. – can show that they have genuinely tried out the product / services etc) will also avoid awkward conversations and exchanges.
3. If they can evidence that they have tried out the product as per your guarantee terms, then my advice would be a no quibble refund – as brand reputation is much more important than irritating admin issues. Many of the shopping cart sites also have a built in refund facility, so worth checking out, in advance.
So, what are your views, do you agree? Do you offer refunds? If so, how often do you get such requests?