How to lower the risk & make more sales

One of the most effective ways to increase sales, is to lower or remove the perceived risk attached to buying from us or hiring us. It’s easy to see why. Let’s face it, we’ve all paid for a faulty product or poor quality service at some time. So today, I’ll share some ideas with you on how to make more sales, using risk reduction and risk reversal tactics.



Let’s go.



Risk reduction



A proven way to reduce the risk, is to offer a free sample of your product or a free trial of your service. Combine that with relevant, recent testimonials from delighted customers to further reduce the perceived risk. And if you have been trading for a long time, include that prominently in your marketing to reduce the perceived risk even more. If you have any relevant awards include them, too.



A word of caution. There are lots of risk reduction tactics out there, which actually increase the perceived risk. I’m referring to free samples or free trial periods that come with caveats. The prospect sees all the strings attached, rolls their eyes and moves on.



Risk reversal



Risk reversal is when you take all the risk, and not your prospective customer. Hiring you or buying from you is now risk free. The prospect has literally nothing to lose. And as you’d imagine, it’s a spectacularly effective marketing tactic.




However, risk reversal is only suitable for certain types of product, and certain types of service. The following example may help you decide if it will work for you and your business.




This is a very personal example, because I offer risk reversal myself for this service . It’s simple. The service is based on a 2-hour meeting with me. At the end, I ask if they received great value. If they say no, I give them their money back. It works, because I only accept clients who I know for certain I can provide outstanding value to. That’s why I’ve never had a refund request.



In short, risk reduction and risk removal are powerful marketing tactics. They help to lower or eliminate a major barrier between you and the prospect, making it massively easier to buy from you or hire you.



Photo by Anna Nekrashevich on Pexels.com
How to lower the risk & make more sales was written by Jim Connolly and originally published on Jim's Marketing Blog