Risk Reduction as a Strategy – 8 examples
Updated: Aug 7
Risk, makes customers Back Off.
When Risk decreases – Sales increase
1. Standardisation McDonalds Restaurants
2. Phone Scripts “Hi It’s James calling from ABC Software, I have your email address here, could I email you a link to our New Online Catalogue?” No risk or effort required by the customer.
3. Guarantees - 2 types Product guarantee “Try it for XX days. Any problems and we will replace / fix / refund your money.” Service Guarantees “We guarantee to respond to your Email in 2 hours and respond to Phone Calls immediately or it’s 20% off your Bill.” If that’s your usual Response Time, then why not Lock It In, promote it and increase sales!
4. Price Increase It's sounds counter intuitive, however a high price comes with the assumption of a better service or product. A beer in a pub is $6 and $9 in a nice bar
5. Customer Driven Word of Mouth / Referrals / Reviews, Case Studies and Testimonials.
6. Try Before You Buy (free) - 3 types
Software-Trial. New Drink-Sample. Car-Test Drive
8. Branding and Storytelling