If you want to attract customers to your brand, you have to ensure that it is easy for them to trust you. If you don’t seem trustworthy, they will not come to you no matter how good your product may be. There are many different ways of building trust and the best way is to create a warranty for your offerings. When customers see that you are offering warranty, they will be more likely to purchase your product.
You should handle warranties with care so that they work in your advantage. Some customers ask for warranty beforehand while the others ask about it when they have decided that they want to make a purchase. If you handle a warranty offering poorly, you will lose a customer that was just about to make a purchase.
To ensure that your warranty indeed works well for you and your customers, you should ask yourself the following questions:
The first answer to this question is simple and has already been explained: faith. You have to win the faith of the customer and you can win that best through a warranty. This is especially important for companies that are struggling with their reputation. Offer a warranty and you will win a few customers.
Another reason why you should consider offering a warranty is to stay in the competition. If your competitors are offering a warranty, you have no option but to follow suit.
If your product is new, you should definitely offer a warranty because that will reduce the risk. If people don’t like it, they will return the product instead of holding you liable.
What to Include?
This completely depends on the type of product you sell. However, one thing to keep in mind as a basic rule is to think like the customer to find out what he may be looking for. The key is always to make the customer feel safe. Will a hundred percent money back warranty for six months be enough? Should you offer a warranty to cover all manufacturing defects for a year or two? Ask yourself all these questions.
What you should NOT include?
This, again, depends on the type of product you are offering. If you intend to make money on the servicing of products in the future, obviously you won’t put a warranty on the services. If you want to sell spare parts or replacements, limit what you offer so that business comes back to you.
This is a major concern. Not many people actually understand how to set the time period for a warranty. It depends on how much confidence you have on your product. Do you think you can afford a lifetime warranty? If yes, you should go for it. If not, don’t take any risks and limit to a year or six months.
Remember that offering a warranty should never result in losses for your company. Warranties are offered in order to attract customers and win their faith.
Be very careful while offering a warranty on your products or services. Win the faith of your customers but that’s it – don’t overdo it. If you do, you will be at a loss. Be strategic in your approach so that you win customers and your business sees a better turnover.