Consumers love guarantees. Have you ever bought anything of significant value and not asked about a guarantee? Of course not. We all do it. There are many examples of companies that are now famous for their guarantees. They offer your money back, lowest prices, fastest service, satisfaction, quality, etc.
Guarantees do a number of things for us as consumers – they alleviate our fear, provide a sense of security and convince us that a buying decision is a good idea because the company stands behind the product.
Before all the skeptics jump in … yes, there are plenty of companies that abuse guarantees and don’t live up to their end of the deal.
Years ago while I was working for Kaplan, we launched the Higher Score Guarantee. This made perfect sense for the business and matched the company’s mission. If we didn’t help students achieve higher test scores and move forward with their educational goals, we weren’t living our mission.
A few years later I joined StraighterLine. That company was new to the education market and the world didn’t know what it did or how its programs worked. One day while I was thinking about how to help grow the business, the following thought occurred to me:
The prices were low (only $99/month) compared to any other educational institutions. So what was the problem in getting more students? Then the answer hit me. The investment of time by the consumer was more valuable than the money that he or she invested in taking a course. It was the opportunity cost of time. Their time was more valuable to them than their money. So what was their concern?
Guaranteed Credit Transfers: The AHA Moment
Students wanted to make sure their credits transferred. And then…. The StraighterLine Credit Transfer Guarantee was born.
After we made sure we could ensure a smooth credit-transfer process, we got our new Credit Transfer Guarantee marketing effort into high gear.
The More Things Change the More they Stay the Same . . .
The education industry has gone through a ton of change over the last few years and the idea of taking courses online and transferring their credits is becoming more common. A win-win for everyone. So the guarantee did its part. But thankfully that is not the only thing that makes StraighterLine unique. By offering low-cost courses, the company helps students save thousands of dollars on their college degrees. So our credit transfer guarantee is more of a college savings guarantee. Ah, the power of marketing…
How can your business benefit from a guarantee? What makes your prospects hesitate to make a purchase? Do you stand behind your service or product? A guarantee lets your target audience know you’ve “got their backs.”
If you would like help thinking through this issue at your business, just give me a buzz or drop me a note. It is always fun figuring out how to break through the marketing clutter and find that AHA idea for a company.
