What Do Fed-X and L.L. Bean have in common?
Everyone has heard of Fed-X and L.L. Bean. Aside from both being well known US-based companies, they are not very similar: One has revolutionized the overnight delivery of letters and packages and one is a mail-order retail company from Maine.
The one thing that connects them is the fact that they have taken the time to understand what held their customers back from using their products or services more often and then built a guarantee around their customer’s fears.
Fed-X revolutionized the delivery of time-sensitive documents. Not only was the idea logistically brilliant but the guarantee attacked the biggest fear of people needing to send time-sensitive documents (that the document or package won’t show up on time.) You probably remember the ads: “When it absolutely, positively has to be there overnight. Fed-X guarantees the delivery of your packages by 10:00 AM!” This combination of phenomenal logistics and a straight forward guarantee changed our society and our expectations forever.
L. L. Bean changed the way people shop. In the past, people were hesitant to order products over the phone from a distant retailer because if someone ordered a pair of pants and the pants did not fit, it was a real hassle for the person to return the pants and get their money back. L. L. Bean introduced: “GUARANTEED TO LAST sm. Our products are guaranteed to give 100% satisfaction in every way. Return anything purchased from us at any time if it proves otherwise. We do not want you to have anything from L. L. Bean that is not completely satisfactory.” This simple guarantee eliminated all fears and excuses about ordering products over the phone and today, on-line.
So … what do your customers and prospects fear most about doing business with your industry?
In my last post, I discussed how to develop your unique selling proposition by surveying the top 20% of your customers. The third question that you should have asked was:
- What irritates you the most when dealing with companies in our industry?
If you carefully review the responses to this question, you will come up with the basis of a killer, show-stopping guarantee for your business. Do not write your guarantee like it was written by a constitutional lawyer. You need to keep it as simple as possible, similar to “delivered by 10:00 AM” or “guaranteed to last.”
And one more thing, don’t worry about the 3% that will try to beat your guarantee. These 3% will always be there. Instead, focus on the 97% that will buy your products and services more frequently because they have one less concern. The revenue from these new customers will more than offset the cost associated with the 3%.
In my next articles, I will show you how to develop your elevator pitch from your USP and guarantee.
In the meantime, download my free eBook, “The Business Growth Engine”! Click on the cover of the book below or fill in the order form to the right and start learning how to double your revenue and triple your profits.
Fed-X is a registered trademark of the Fed-X company. L. L. Bean is a registered trademark of L. L. Bean Inc. GUARANTEED TO LAST is a service mark of L. L. Bean Inc.
