Money-Back Guarantees

I love this ad.

"If the soles wear out before 3,000 miles, we'll replace the shoes free."

Customers have become so used to false promises and unrealistic claims that a money-back guarantee like this really stands out.

But does it work?

The Evidence

In 2011, a paper published in the Journal of Retailing studied money-back guarantees¹.

200 consumers saw ads for eight different products.

Sometimes the product had a money-back guarantee, plus a guarantee logo. The control group saw the identical ad, without the guarantee.

Turns out, the money-back guarantee boosted the perception of the ad in almost every way.

Those who saw the money-back guarantee ad were:

6.1% more likely to buy
4% more favourable about the product
And 2.9% less likely to regret the purchase

A money-back guarantee reduces the perceived risk, makes people feel less pressured and makes them more likely to actually buy.

It worked for all product types, but even more strongly for products that are hard to evaluate until you buy them (like running shoes and fridges).

An ad for the Maytag refrigerator published in 1989.

Which is why I offer a no-questions-asked 30-day money-back guarantee for the Nudge Vaults.

There are 575+ more insights like this in the Nudge Vaults

Everyone gets a 30-day money-back guarantee. I've had three customers request it. All received their money back the next day, with no questions.

Get access to the Vaults right now →

Or you can preview your first 50 insights for free →

Cheers,

Phill

¹Suwelack, T., Hogreve, J., & Hoyer, W. D. (2011). Understanding money-back guarantees: Cognitive, affective, and behavioral outcomes. Journal of Retailing, 87(4), 462–478.

As a behavioural science practitioner, I believe in the peak-end rule.

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