We have talked a little bit about guarantees here in the Home Business blog and how they can help with sales and customer service, but some businesses find that offering a trial period in which the customer can “try out” the product or service to see if they are satisfied to be an advantage. With a trial period, the customer gets the product in their home, or experiences the service, and then can return it for a refund if not completely satisfied. This can be a way to boost sales and improve customer service, but it takes management and some risk for the business owner.
Many businesses prefer the “all sales final” approach so that they don’t have to deal with returns, guarantees, and the bookkeeping of giving money back or giving credit. Others find that giving customers a window of time in which they can cancel services or return products if they are not completely satisfied helps them to make more sales and keep customers happier. The idea being that once people get the product or service in their hands, it will become a part of their lives and they will be perfectly happy and satisfied, thereby negating the need for a return. Some businesses will allow a week or two before processing payment or billing—making the trial period truly “free.”
If you decide to offer a free trial period, you will need to make sure your records and paperwork are in order and that you keep track of what exactly the terms are of the free trail period. Put them in writing and make sure that the customer understands the conditions as well. Processing returns and refunding money can be a bit of a pain when it comes to records and finances, so you might want to think over exactly how you want to handle the financial transaction and whether you want to wait to process payment or offer a credit or use some other means with your trial period.
I would love to hear from some of you who do utilize a free trial period in your business—how it works, if you think it improves your business, etc. Any advice or first-hand stories for the rest of us?
Also: No Guarantees