Having guarantees that are outrageous, having guarantees that are incredible and that are like no brainers, reduce all the risk for consumers and for buyers will absolutely increase your sales. It’s a proven formula.

Yet shockingly, so many accounting departments and CEOs and upper leadership, they want to protect themselves and not carry any of the burden of risk.

Why?

Because they’re afraid that their product’s not good enough or people won’t like it, or they think it’s going to hurt profits and revenues and the exact opposite has proven, uh, true time and time again.

So the very first way that you’re gonna reduce buyer risk and how a buyer risk management system, is with your guarantees.

Hello my friend, today we’re gonna cover one specific strategy you can use to dramatically increase your sales. My name’s Joshua Boswell founder and CEO of Strahes consulting. We have used this one particular strategy around the world with hundreds of different clients, very profitably, over multiple years.

And I wanna share with you what it is. The beautiful part about this is, that it does not require any increase of overhead, an increase of personnel. It doesn’t require you to invest large amounts of time or capital. You can begin implementing it right now today at a very short period of time consulting with your marketing and product development teams.

You can have this deployed in a very short period of time and immediately begin to see an increase in sales. So what do we, what is this one specific strategy. The one specific strategy is what we call buyer risk management.

Buyer risk management is a very simple process of reducing the risk load on the end buyer and consumer. This allows you to signal to them that you’re willing to take a lot of the risk on your own shoulders, because you’re so confident in what you have to offer. We’ve seen buyer risk strategies by major industry leaders, such as Southwest airlines.

Where other airlines were moving toward higher fees, which signals more risk, baggage fees, check-in fees, change fees, etc… More risk, more hassle for the end buyer. Southwest has gone in the exact opposite direction where they’ve reduced or cut out or eliminated all of those things. In order to make it a less risky venture for the buyer to engage them.

And so we’ve seen consequently over the last couple of quarters, upwards of 129% increase in revenues by Southwest alone. While other companies, major leaders like Delta have actually seen a decrease in revenues. They’ve struggled to return back to normal activity after COVID and after the pandemic.

So what are three specific ways that you can reduce the buyer risk profile?

The very first way is inside of your guarantees.

So your guarantees, a very powerful way to think of a guarantee is the, if then proposition. If the buyer does this, then you guarantee your promise that they’ll get these results, they’re gonna have this impact or this outcome. You can do this at every level with software, manufacturing, healthcare, travel industry, whatever it is. Again, it’s based on a behavior set.

If the buyer does this, then you can guarantee them that. Another way to do guarantees is just absolute unconditional guarantees. Our product, our service will perform at this level, period end of discussion. Or you can get your money back, etc… Having guarantees that are outrageous, having guarantees that are incredible and that are like no brainers reduce all the risk for consumers and for buyers will absolutely increase your sales..

It’s a proven formula. Yet shockingly, so many accounting departments and CEOs and upper leadership, they want to protect themselves and not carry any of the burden of risk. Why? Because they’re afraid that their product’s not good enough or people won’t like it, or they think it’s going to hurt profits and revenues.

And the exact opposite has proven, uh, true time and time again. So the very first way that you’re gonna reduce buyer risk and how a buyer risk management system, is with your guarantees.

The second way that you can do this is with a very powerful return policy.

The return policy, by what I mean by that is, is how easy is it for your buyers to return stuff? Amazon has made a killing with this inside of their prime thing. It’s not necessarily a guarantee. It’s just like, did you not like something? Did you get the wrong something? Did it not fit? Was it not the right thing for you at this time? Whatever the reason is, if you’re an Amazon prime customer, you have the ability to return things. No questions asked.

Recently my, uh, aunt bought a car and it had a 10 day return policy on it. As simple as that, if you didn’t like the car, for whatever reason, decided to join a different color, decide you want a different model, decide whatever it is, you can return the car, no questions asked 10 days after purchase. Have a mechanic look at it, drive it around, see if you think it’s comfortable, whatever the case is, the return policy dramatically reduces the buyer risk profile.

The final thing that you can do in reducing buyer risk, is you can have an excessive amount of social proof. Social proofs.

We’ve seen social proof networks rise up and the ability to have customers tout the benefits of working with you, buying from you, engaging with you, dramatically increases sales. Because when buyers feel like other people have had a good experience, like the product, like the service, like the engagement, like the customer service, like the guarantees, like the return policy and have voluntarily talked about ’em, it reduces the risk.

They feel like if somebody else has had a good experience, I probably will too. There’s lower risk.

So my challenge to you today is to create a buyer risk management policy inside of your company. Re-look at it. Immediately begin to implement it and you’ll see sales increase. Talk to you soon. Bye now.