Why give business clients a “Value-Back guarantee"?

Posted on January 13, 2020 by Mariana Pimenta, One of Thousands of Executive Coaches on Noomii.

In most developed countries a money-back-guarantee has become not only a benefit but a consumer right. 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 meetings or deliveries are recorded for both parties to go back and listen if needed. Second, get clarity on the objective and on the “minimum results” expected by your client in writing. Third, ask for written feedback every quarter, 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 if they are not honest about the value they are getting(or not getting), 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 quarter or 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, development and results, respecting the requirements agreed upon, 100% of the client’s investment will be returned.

Remember that there are things that are not under control, for example, a global recession, a natural disaster or a serious health problem. And there are insurances that can cover you up in those scenarios.

The most important factors in a service relationship are hard work, trust, and ethics. 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 results expected)

-the client gives objective honest feedback after each quarter

-the client does his “homework” with your assistance, always trying to walk that extra mile

-the client shows up for meetings, classes or whatever is being contracted and stays present

-if the client needs to cancel a session for any reason, he will give the coach a minimum 24-hour notice

EXAMPLE of why there needs to be trust and ethics :

In terms of numbers, the “ minimum results" stated in our contract would be something like this. Let’s say the person is paying 2400,00 USD for the 6-month program. And he gets new clients or contracts that will pay him 2400,00 or more as result of our coaching exercises, 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.