Risk Reduction as a Strategy – 8 examples

Updated: May 1

Risk, makes customers Back Off.

When Risk decreases – Sales increase

1. Standardisation E.g. 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 made specifically for your Industry?” 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 as a GUARANTEE 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 - 3 types - Trials, Samples and Test Drives

For Software there's a 30 day free Trial. 

For a New Snack, Samples are given away free at busy train stations

For Cars it's a Test Drive

7. Demonstrations

8. Branding and Storytelling

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