I try and keep out of the shops as much as I can but a recent shopping trip to buy a new bed hit home the importance of “Risk Reversal” in business and how it can really help you stand out from the crowd.
I am sure you have all done this at some time when shopping for a new bed.
You lie on lots of different mattresses in many stores – but continue to wonder what happens if you get the new bed home and don’t like it – can’t sleep on it – or you wake up with back pain.
So YOU – the buyer – are taking all the risks.
Then I walked into IKEA – and the guarantee was plain and simple.
If you get the mattress home and for any reason in the next 30 days you don’t like it – then just bring the bed back and they will refund your purchase.
WOW – how good is that.
So THEY take the risk not YOU.
Most – dumb thinking business owners – will say “that would cost me a fortune in refunds – and I can’t sell the returned bed once it comes back – this is a disaster”.
But I think IKEA are smart enough to realise that refunds are just part of the business process and are confident this strategy will increase overall sales by high enough numbers to more than cover any returns they get.
One of my business mentors once told me that if you are not getting lots of returns – you are not selling hard enough.
You want to encourage as many people as possible to give your product or service a go – and accept refunds as just a standard business expense.
How can you apply this in health care?
How about a money back guarantee and your next session free if any client is not happy with your service (this was our guarantee for many years in my physios clinics).
If you sell a product like orthotics – give a 100% money back guarantee and the client can even keep the health fund rebate – so the client is actually in front if they give it a go.
Personal trainers can guarantee your clients lose 10kg in 10 weeks using your highly specialised training system – provided the client adhere to the system of course.
Each of these guarantees will provide a great point of difference and greatly increase your business profits – guaranteed.
I welcome your thoughts on this topic.