DW's Blog
Satisfaction Guarantee
by DW Green — January 21, 2016
Howdy Partner!
I have always believed in satisfaction guarantees. I believe companies are wise to stand behind the products and services they provide their customers. Personally, I have always been loyal to companies who take care of me and financially back their work when problems arise with product or service deficiencies. There are five reasons why a guarantee is a powerful tool, both for marketing product and service quality and for achieving it. First, it pushes the entire company to focus on the customers’ definition of good products and services, not an executive’s assumption. Second, it sets clear performance standards, which boost employee performance and morale. Third, it generates reliable data (through payouts) when performance is poor. Fourth, it forces an organization to examine its entire service-delivery system for possible failure points. Last, it builds customer loyalty, sales and market share. What makes a good guarantee? It is unconditional, easy to understand and communicate, meaningful, easy and painless to invoke, and easy and quick to collect on. Unfortunately, fear of customers cheating is a big hurdle for some when considering offering guarantees. Sure, there will be cheaters—maybe 1% of customers who take advantage of a guarantee to get something for nothing. What they cost the company amounts to very little, however, when compared to the benefits derived from a strong guarantee. Where do you stand on satisfaction guarantees?
Filed Under: DW's Blog
