Like any great article; after reading Kaiser's I got to thinking about the subject in more depth and one thing in particular that occurred to me, is that every single infomercial has one tremendously powerful sales tactic in common.
The Money Back Guarantee.
The money back guarantee is the nuts and bolts of any solid infomercial; it's right up there along side 'Buy in the next 15 minutes and receive TWO for the price of ONE!'
The money back guarantee gives the consumer piece of mind; it reduces buyer anxiety and removes perceived risk for a purchaser and when you can offer a potential customer zero risk, the odds of a sales conversion increase dramatically.
So why don't fitness professionals routinely offer a money back guarantee on client/member results?
It would make sense don't you think? If you can't stand behind your product or service then why are you in the fitness business?
The problem with service and consultancy professions is that your clients cooperation is necessary for them to achieve the results that they want, not to mention the fact that their goals may be unrealistic (that would be a first).
There are different types of guarantees you can offer your clients, besides giving back their money:
Satisfaction Guarantee: Similar to a money back guarantee, but you can use your personal training or fitness center service as reimbursement instead of cash. For example, you could promise a client that they will lose 10 pounds or 5 kilos in their first month or the second month free.
On-Time Guarantee: Dominoes Pizza made this a standard in the pizza delivery business with their 30 minutes or it's free campaign, however, you could offer that you will never be late for a session or it's free.
Price-Protection Guarantee: This could mean that you lock in a price for as long as they continually do business with you. Competitor price matching is another way you could offer a price-protection guarantee.
I have to say straight up that I've never offered a money back guarantee to my personal training clients or gym members, but that's not to say I wouldn't try it now if I gave it some careful thought and planning.
You have to admit, it would be a very powerful promotion to take to market and it would definitely cause a stir in the industry.
What do you think; could a personal trainer or fitness center offer a money back guarantee, would it be feasible, would the risk outweigh the reward, would you consider offering one?
I'd be very interested to hear your opinions.
Ben
I offer all of my clients a 90 day 110% money back guarantee. If they are not satisfied with the service they have received and their results after 90 days, and they have demonstrated 100% adherence to the program, I give them their money back and an additional 10% for wasting their time.
ReplyDeleteThe conditions they have to meet in order to demonstrate 100% compliance are:
-That they show up on time to 3 sessions per week and give 100% effort.
-They must perform 2 additional days of cardio each week which must be logged online.
-Keep a detailed nutritional log which has assignments in it. They must also eat within the guidlines of the program which only has 3 simple rules.
If they ask for the refund (no one ever has accept one who did not meet the requirements so I didnt refund) I give them a 3 page questionnaire they must fill out, basically telling me why I suck.
The fact is, if they are 100% compliant with the program, there is no way they can not lose weight unless there is something physiologically wrong with them.
Thanks Bzuniga, that's exactly the type of comment I was hoping for.
ReplyDeleteCan you elaborate a little on what type of fitness business you're running (target market, infrastructure) how successful it's been for you and how you market this awesome promotion?
Great stuff!
Ben
It seems like a difficult thing to give guarantees on. We have clients at most 3 hours a week, they have another 165 hours which will affect their results. So the "guarantee" becomes an "unless..." which is pretty weak.
ReplyDeleteI run both bootcamps and one-on-one PT targeting the average frustrated 30 and 40 something individuals with 20+ pounds to lose and little time for exercise.
ReplyDelete-The bootcamps are run on a 1 year commitment or a M2M for an additional 50% of the monthly price on the 1 year. They receive an unconditional 30 day back guarantee. No questions asked. I end up giving 2-3 refunds a year but could care less because the money back guarantee makes it an easy sell and I have a waiting list on my bootcamp.
-For my PT clients, I dont sell sessions. My clients commit to 6, 12, or 18 months of PT. For $xx/month they train with me 2, 3, or 4 times per week (depending on their agreement).
@Kiashu: It's not an "unless", its and "if". An "if" that they are fully aware of before they even come in for the consultation(which I close at 95% because of my guarantee).
My "weak" guarantee took me from part time struggling trainer working side jobs, making 70k a year (while still working part time and dropping the side jobs) and spending twice the amount of time with my son that most dads get to.
It's an interesting topic and there are cases for both sides as you guys have highlighted.
ReplyDelete@Bzuniga Obviously you've been involved in the fitness industry for some time, do you think that a money back guarantee would work for trainers new to the business?
I didn't say it couldn't work, I just said it seemed a difficult thing to make work right.
ReplyDeleteBzuniga, you attribute your success to the guarantee. But was that the only thing you changed? Business is like exercise science, so much of the time when we change one thing, we change ten things, so it's hard to say that one particular thing gave us most or all of the results.
If nothing else, someone offering a money back guarantee is a confident person. And confidence is a large part of sales.
Yes, I have been a trainer since 2000. I spent 4 years @ a big box gym, got burned out spending 16 hrs at the gym to train 7 sessions and gave up. Started training part time. Did that for 4 more years. Went back to full time two years ago and the guarantee was a tactic that I new would display confidence. I then closed my next 30 consults in a row.
ReplyDeleteIt may not be THE reason I am as successful as I am today, but I can say without a doubt that if I had not started giving it, I would still be the average, frustrated, struggling trainer.
Take it as you will. It worked for me.