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Risky Business

The secret to converting prospects into customers is making the benefits out weigh the risks. If you can reverse the risk for customers then all that is left are the benefits, drastically increasing the likelihood that prospects will become customers.  

Here are three of the best ways to reverse the risk for your prospects. 

Guarantees and Warranties 

Guarantees should be clear and concise. Long and confusing offers decrease confidence and often turn prospects away. The type of guarantee offered should match the level of risk. The greater the risk the greater the guarantee needed to reverse the risk. For example, premium priced products or services with delayed results might require a “double your money back” type of offer.  Offering warranties further reverses the purchasing risk. Warranties show prospects that you stand behind your products or services and the benefits they offer.

Free Trials

Allowing people to try out a product or service without being locked in is a great way to eliminate risk. Free trials are really common when selling software because it is highly effective. But there is more to it than just letting people test a product or service. How many free trials have you signed up for that you never actually used? Increase the likelihood that people will become invested in your product or service by: Allowing ample time to get prospective customers familiar with the product or service. Even better, provide step-by-step guidance to get started.  Have a follow up sequence in place reminding people to use the product or service and then asking them for feedback once the trial period is over.  Carefully consider whether you want to request a credit card up front.    Having to enter a credit card will often detour people from signing up for a FREE trial. However, if people are willing to give you a credit card, their commitment level is much higher, and you’ll see more sales conversions.   Be aware that sometimes customers feel “tricked” into paying for the first month because they forget or don’t realize that payment begins after the free trial period.  Be prepared on how you want your customer service/billing teams to handle this.  Not everyone who signs up for a free trial will want to buy. Free trials are designed to allow people to become familiar with and invested in your product or service, but they are also a great way to spread the word. Even if your product isn’t right for them, they might know someone else who could benefit. 

First Time Buyer Rewards

Rewarding new customers or offering them special discounts is another way to get people invested in your product. Rewards can range from, “First Month Free” to cash bonuses.  What are some risk reversal techniques that have worked for you?

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