Nine out of ten readers will enjoy this article

I was in a store the other day, checking out a new product I’d never tried and really didn’t know much about. I liked what I saw, and what the salesperson told me, but I was unsure if it would work for me once I got it home.

So I asked about the return policy: “Exchange only within 15 days.” I politely thanked the salesperson and walked out the door, never to return.

Whoever formulated that restrictive policy obviously didn’t understand the 90/10 rule of product returns: of every 100 customers who purchase a product with a guarantee, 90 will keep it and only 10 will return it.

If I’d purchased that item, there would have been a 90 per cent chance I would have kept it. If you’re the store owner, them’s good odds!

One reason for the 90/10 rule lies in a common yet entirely irrational cognitive phenomenon that influences many of our purchasing decisions. For whatever reason, most of us tend to value items we possess more than those we don’t. For example, I wasn’t prepared to pay $149 for that item – but if it had been mine already and someone told me they’d take it away unless I paid $149, all else being equal, there’s a much better chance I would have forked over the cash.

It’s absolutely bizarre.

They say possession is nine-tenths of the law – in business, it’s nine-tenths of the purchase. It’s why smart salespeople get you to handle an item in store, playing with it and testing its features. It’s why car dealerships will do almost anything to get you to go for a test drive. And it’s why you need to offer a strong guarantee that will eliminate the perceived risk of taking your product home (or ordering it online, in which case a guarantee is even more important).

Yes, some people will abuse your policy. They’ll purchase your widget, then use it, abuse it and put it away wet. Then they’ll drag it back and politely request their refund. However, the increased sales your guarantee will produce will vastly outweigh this minor – if annoying – inconvenience.

I (almost) guarantee it!

About the Author:

Ryan Parton is a professional copywriter and marketing strategist based in the Comox Valley, on Vancouver Island.

He specializes in writing effective marketing copy for web sites, direct mail, brochures and other marketing collateral.

Contact Ryan

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