Rebuilding confidence by assuming the risk of a transaction

I was entertained, not long ago, by an offer I saw at the counter of an Arby’s restaurant. They were attempting to launch the new “roast burger” line of Arby’s sandwiches; a premium product, relative to the price of other items on the menu. But in-store signage—and a coupon that was offered at the counter—the customer was invited to “go ahead and try one… and if you don’t like it after two or three bites, bring it back up to the counter, and we’ll trade it back in for one or two of your old favorites.” Arby’s drove product trial by assuming the risk of the transaction.

Recently, General Motors has been encouraging consumers to give the brand another look… with a money-back guarantee. The offer has been prominent in the company’s advertising, as explained a story in last week’s Springwise newsletter. The theme of the campaign is, “May the best car win.”

Implications: At a time when consumers are spending less in many categories, each purchase is likely to be more carefully thought-out. Instead of thinking of this consumer as "cheap" or more frugal… consider using words like judicious, prudent, and deliberate.

The consumer has gotten back in touch with the value of a dollar. (Remember when money was no object? Now, it’s an object.) And she/he doesn’t want to make a mistake.

Few things create confidence for someone who’s considering the purchase of a product like a seller who’s confident they’ll be happy with it... and prepared to demonstrate that confidence with some kind of a satisfaction guarantee.

Mike Anderson