The Saturday Checkout

#3

Transforming Fear Into Fortune - The Risk Reversal Blueprint

Read time - 8 minutes

23/12/2023

Your buyer is right there. Hovering over the 'Buy Now' button, sweating bullets.

"Will it fit?" "Will it look like it does in the photos?" "Is it good quality?"

And ultimately,

"Am I about to throw away my money?"

What you do now goes a long way to deciding the sale.

How will you deal with your prospect's risk?

TLDR; Quick & Dirty

• Make your Shopify store a no-risk zone, even if the risk falls on you instead. Yes, some customers will abuse the system, but we consider that to be a well-worth-it marketing cost.
• Shoppers who feel super secure are more likely to click 'Buy Now' and checkout without a second thought. And after all, that's the whole ballgame, right?
• Squash customer fears with killer guarantees and hassle-free returns. In return they'll buy again, tell their friends, and leave glowing reviews. It's a virtuous cycle of happy customers.
• Remember, happy, fearless customers = more sales for you.

Ready to dive into the details? Keep reading...

Fear... The Conversion Boogeyman

You've got a killer product. You've got a killer store. You've got killer ads. But you're still not getting that elusive "add to cart" click.

We harp on it a lot here, conversion is the art of removing friction from the buying process. And fear is the biggest friction point of all.

But fear goes both ways. It's not just your customers who are scared. You already know about free-returns, and free-shipping, and also the horror stories of naughty customers abusing the system.

So, how do you balance the risk?

The Perils of Playing It Safe

Not jumping on the risk reversal bandwagon often seems like the smart play.

The risk isn't on you. No worries about being out of pocket or having a warehouse full of returns.

By not accepting risk yourself you end up lumping it all onto your customers, and that comes with a whole bunch of nasty side effects. Think abandoned carts, low conversion rates, and a whole lot of "what ifs?".

You don’t want to be the store that's all talk and no walk, do you?

The advantages of risk reversal

Going hard on risk reversal - even if it feels risky on your end - is like giving your customers a superhero cape.

Suddenly, they’re invincible – fearless and ready to shop!

And yes, maybe your policy gets abused, but we think there's a better way to think of costs associated with risk reversal.

Think of it as a marketing expense.

If your customers are happy, they'll come back. They'll tell their friends. They'll leave glowing reviews.

You get a virtuous cycle of happy customers, and that's worth a lot more than a few returns, right?

So let's dive into the details of how to make your store a no-risk zone.

The Risk Reversal Hall of Fame: Shopify Stores Nailing It

If you want to see a couple of stores who have really perfected risk reversal (and are reaping the benefits) then look no further than Helm Boots (US) and The Iconic (Australia).

They're both exceptional at placing customer risk back onto their shoulders and are reaping the rewards.

HELM Boots: Crushing the Risk Game Like a Boss!

Over at HELM Boots, they're playing it smart with some slick risk reversal moves.

They've dealt with a key customer concern over Christmas and have rolled out the red carpet with free U.S. shipping, returns, and exchanges until January 31, 2024. Talk about a sweet deal!

Their message? "Love your first pair or swap 'em till you do."

They're practically shouting, "Try them on, totally risk-free, folks!"

This isn't just about selling boots; it's about wrapping their buyers in a cozy blanket of buyer confidence. If those boots don't make your heart sing, swap them out – no drama, no dollars wasted.

HELM's got your back, ensuring the customer boot experience is nothing short of perfect.

THE ICONIC: Nailing the No-Risk Shopping Spree!

There's a reason The Iconic is taking over Australian fashion... they're the wizards of worry-free shopping with free shipping and by making returns incredibly easy.

Buy those snazzy sneakers, and if they don't fit? Send 'em back at their cost, not yours.

Returns are as breezy as a beach vacation. No long forms, no "why are you leaving us" drama. Just a straightforward, "it's not you, it's the clothes" policy.

The bag is preconfigured with a return label, so all you have to do is pop it in the post. Easy.

Peep those product pages – they're like a crystal ball. Detailed descriptions, crisp images, and real-deal customer reviews. You practically know the product before it hits your doorstep.

Got questions? Their customer service is like that friend who always texts back – super responsive and always ready to help. Whether you're pre-purchase pondering or post-purchase pondering, they're onto it.

You wanna know how I discovered The Iconic? From my wife.

Why was she raving? Free returns. She could buy a bunch of stuff, try it on, and send back what she didn't like. No fuss, no drama, no worries.

We spend a lot more money than I'd like to admit on The Iconic, and I'm sure we're not the only ones.

Converting Fear Into Cash - The Risk Reversal Blueprint

Step 1: Get Inside Your Prospect's Head

Time to play detective. What’s freaking your prospects out? Dig deep, ask around, and use those insights to tailor your risk reversal policy.

Read the reviews, especially the bad ones. What are people complaining about? What are they worried about?

Put yourself in their shoes and think, "What would make me feel safe?", and "what would stop me from buying?". Take a look at your top competitors. What are they doing? What's working for them?

Step 2: Craft An Irresistible Offer That Removes All Risk

Whether it’s a money-back guarantee, free returns, or an extra-long warranty, make your offer as tempting as a double chocolate sundae.

Go through every step of the customer journey, analyse for risk, and ruthlessly put it back onto your shoulders.

The goal? To make your prospects think, "Why the heck not?"

Step 3: Flaunt It Like You Mean It

Got a killer risk reversal offer? Shout it from the rooftops! Slap it on your homepage, your product listings, your ads, your socials... everywhere!

Total risk reversal is a legitimate competitive advantage, so make it as visible as a neon sign in a dark alley.

Step 4: Deliver On Your Promises

You've made a promise, now you've got to keep it. Deliver on your risk reversal offer, and always, always, always, put your customers first. It'll be scary at first, but it'll pay off in the long run.

Step 5: The Proof Is in the Pudding

Keep an eagle eye on how your risk reversal strategy is performing. Tweak, refine, and repeat. It’s all about making it better, stronger, and more kick-ass.

Remember, what goes around comes around, and taking exceptional care of your customers will net you glowing reviews... which you're going to whack directly onto every product page.

It's a virtuous circle of buyer happiness and confidence. 👍

Parting Thoughts on Transforming Fear Into Profit

Risk reversal is a delicate balance of "how much risk am I willing to take on to make the customer happy?".

Maybe you're not ready to go all-in with free returns or a lifetime warranty. That might be a little too much risk for you to stomach.

That said, we believe you should think of it as the secret sauce in your e-commerce kitchen. It's all about turning those "what ifs" from your customers into "why not?".

And if you're not willing to take on the risk, why should your customers?

By tackling their fears head-on, you're not just selling products; you're selling peace of mind. And let's be real, who doesn't love a bit of that?

Need more tailored advice?

Reach out, and let's chat about tweaking your store to increase your chances of converting expensive prospecting traffic into happy customers who leave glowing reviews.

Either way, best of luck, hope you crush it, and have a great week!

Cheers,

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