09 Jan Why give clients a “Value-Back-guarantee”
In most developed countries, this has become not only a benefit but a consumer right. If you, like me, have lived out of word of mouth for many years, if your clients have been referring people to you because there is trust in your hardworking commitment to their best results, that means your service is producing a positive Return On Investment (ROI). So why not give your clients a value-back-guarantee?
But that should not mean that we will be responsible for the lack of hard work of our clients. It’s not an exit door for them to give up when it gets too hard. And trust and ethics play an important role. So how can this work?
First of all, if it’s a service that you’re selling, make sure all the meetings are recorded for both parties to go back and listen if needed. In my case, with talent development, this also gives the client the chance to listen to themselves later and it’s a powerful exercise in itself. Second, get clarity on the objective and on the “minimum results” expected, to include that in writing in your agreement. Third, ask for written feedback after each meeting you have with them, not when the program is over. It can be a simple email or WhatsApp question. Make sure you hear from them that they are getting value throughout the process.
In my case, my clients have “homework” that needs to be done, after each session. I can’t do the work for them. If they don’t do their homework or don’t tell me when they feel they are not getting value, I can not be responsible for their results. When the client does his homework and points out to me what they feel is missing after each meeting, he is doing his part. And together we’ll design the adjustments needed to get the value they paid for, meeting after meeting.
Both you and your client win this way. You learn how to serve your clients better and they get better outcomes. If a six-month subscription doesn’t produce positive learning and results, respecting the requirements agreed upon, 100% of the client’s investment will be returned.
To give you an example, in terms of numbers, the “minimum results” stated in our agreement would be something like this. Let’s say the person is paying 2400,00 USD for the 6-month mentoring program. And with the tools he learns from us, he gets new clients or contracts that will pay him 2400,00 or more, so the coaching program is considered paid for. Or he makes changes in his habits that have improved his performance at work and he was able to get better feedback from his boss or coworkers. Although that is hard to calculate in numbers, he knows that the financial results will come down the road.
The client needs to use his common sense to judge if he got the value back. And it’s important to remember that there are things that are not under control, for example, a global recession, a natural disaster or a serious health problem. But deep inside, he’ll know if there was value if he has ethics and trust on his side.
That’s why the most important factors in a service relationship are hard work and trust. On both sides. By offering this value-back-guarantee we are making the first step to ensure good results.
Requirements:
-both parties get clarity on the contract agreement (objective and minimum results)
-the client gives objective honest feedback after each meeting
-the client does his “homework” after each meeting, always trying to walk that extra mile
-the client uses his common sense to evaluate all the factors involved (economical environment, etc)
-the client shows up on time for each meeting and stays present without cutting it short
-if the client needs to cancel a meeting for any reason, he will give the service provider a minimum 24-hour notice and will re-schedule within 15 days at the most.
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