Q: My
competition has some unbelievable guarantees. I am loosing too many
deals on their ability to reverse the risk of the purchase. How can
I compete at that level?
A:
This question is an important one, and there's a lesson in it
for all of us to learn.
Salespeople love to make guarantees. Why? Because they think it
gives them the competitive edge that will move prospects over the
fence they've been straddling. Actually, guarantees work
because they make buyers feel like there's no risk involved in
making the decision. The logic is this: Move the prospect by
removing the risk.
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Sometimes, guarantees deliver great results for you and your
company; yet other times, they backfire. So if you've decided
to make guarantees to potential customers, you must make a habit of
reading the fine print backwards and forwards.
There's a right way and a wrong way to tell buyers about
your business's guarantees. Consider this disaster waiting to
happen: "Our widgets are guaranteed. If you don't like
what you see when they're installed, you'll get your entire
investment back."
What if the customer doesn't like the way a single widget
looks? And regarding the term "entire investment," what
if your customer had to modify the ventilation system in six
facilities in order to accommodate your product? A hungry lawyer
could probably persuade someone, somewhere, that this expense
should be included in the customer's "entire
investment."
Your company has no doubt spent a lot of money on legal
brainpower to develop the language of your guarantee. Read it. Then
read it again and make notes-do whatever it takes to know every
detail. And when you talk about the guarantee to buyers, avoid
sweeping statements that could potentially get you into trouble.
Stick with something like this: "Our widgets are guaranteed.
Let me go over our policy with you when we're finished here,
and then I'll give you a copy of your own so you can review
it."
There are times when you shouldn't use the term
"guarantee," at least not right away. Appealing to a
guarantee in the beginning of your relationship with a prospect is
a sign of weakness. What, your prospect may ask, is that guarantee
meant to compensate for?
If your prospect asks about a guarantee, of course you should
give him or her all the details. Other than that, save references
to your guarantee for the final stages of the sales process, when
you're talking specifics about the money your buyer will be
spending.
Credibility
Factor
1. Stay away from the words "I think." You can
leave prospects swearing you've told them something you
haven't really told them. The phrase, "I think X is the
case," may be interpreted as, "I am virtually certain
that X is the case." Usually this is not what you mean, so
don't say, "I think."
2. Highlight real service-based commitments. Service is a
sure way to establish and reinforce your credibility. Review and
consider all the specifics regarding your business's after-sale
service commitments. Don't ever make guarantees you aren't
absolutely certain about. Many buyers are sensitive about service
issues, so make sure the customer gets a good look at exactly what
you offer. Put it into writing, pass it onto the prospect, and see
what happens.
3. Broadcast the value you deliver. Broadcasting means
telling people about verifiable success stories. When you broadcast
that your organization helped Joe Smith reduce his overhead by 12
percent while increasing overall effectiveness, the implication is
that your prospect should feel free to call Joe Smith and confirm
your success story.
If you're going to use this approach, it's essential you
take the following steps:
- Work with current customers to establish exactly how well your
solution is actually working. If something isn't performing the
way it should, develop and implement a solution.
- Once you isolate customers who are thrilled with what your
business has accomplished for them, you have to quantify the level
of your success. Get real, verifiable numbers on what you've
done for your customer. You may have to ask the customer for raw
data, analyze it yourself and submit it to your customer for
approval. It's worth the effort!
- Let your contact know you plan to use the information to reach
out to other customers. Don't worry-if you're delivering on
your promises, the vast majority of your contacts won't mind at
all.
Make the commitment. Make the calls. Do the digging. Make
quantifying your results a part of your account reviews. Then use
the most compelling results to demonstrate just how special and
reliable you and your business really are. Don't skimp on any
of these steps. Remember: Your credibility is at stake, and your
credibility can make or break your success with existing, as well
as potential, customers.
Tony Parinello is the author of the bestselling book Selling to VITO, the Very Important Top
Officer. For additional information on his speeches and his
newest book, Secrets of VITO, call (800) 777-VITO or
visit www.sellingtovito.com.
The opinions expressed in this column are those
of the author, not of Entrepreneur.com. All answers are intended to
be general in nature, without regard to specific geographical areas
or circumstances, and should only be relied upon after consulting
an appropriate expert, such as an attorney or
accountant.