Empower Your Business

Accounting is Just the Beginning

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Risk Reversal

When you’re asking a new customer or client to do business with you for the first time they are taking a big risk by placing their trust in you. Now of course, from your perspective they are not, but it’s necessary to put yourself in their shoes and see things from their point of view. Yes, they may be unhappy with their current supplier but often it’s a case of better the devil they know!

Now to increase the chances of getting that new customer or client on board you need to help them by reducing the risk as far as you are able to or by eliminating the risk by you taking it on the chin, by “reversing” the risk onto yourself. After all, you want the business, so why should the customer or client go out on a limb?

One risk-free way for you to achieve this is by third party endorsement as it always helps if someone else can reassure the prospective customer or client that you are reliable and can be trusted. The easiest way here is testimonials from named individuals, as anonymous testimonials can be fabricated. Another good way is some case studies that talk about specific results and clearly demonstrate how you’ve gone beyond the norm to help your customers and clients.

Now since it can also be difficult to prove the bona fides of case studies an even better (but riskier for you) way is to tee up some referees who are prepared to speak to the prospective customer or client and answer their questions about you, your reliability and how you’ve performed in practice. If you’re new in business this could be difficult but otherwise, there’s normally a customer or client or two that you’ve done that special favour for who’ll be prepared to help.

A potentially even riskier but very effective technique is to offer an unconditional money-back guarantee if the customer or client is unhappy with your product or service. This will only work if you’re good at what you do so take care or you could be in difficulty very soon! Yes, you may get the odd time waster with nothing better to do but on the whole I find this works well, both for me and for clients.

Feeling very brave? Some take this a step further, by offering an even larger cash refund if they get it wrong. That may be over the top for you, but if you need help coming up with your risk reversal strategy contact Nick on 0800 ASK NICK or email nick@abac.co.nz.