Satisfaction Guarantees

Is it unexpected for consumers to send for a “satisfaction guarantee” if not dissatisfied?

Nope.

A consumer could write “Love the product, gimme my money back” and odds are excellent Ms Consumer will still get her refund.

Huh!? You are now scratching your head and wondering if I am crazy.

Well, maybe, but not about this. I’ve written that very phrase before and been paid.

IMO the satisfaction guarantee is the stupidest form of rebate possible.

Why?

Well, you’ve ticked off loyal customers that may not participate because they think it is incorrect to send for a dissatisfaction guarantee, and the manufacturer may only be hearing made up complaints from most of the people that decide to participate so they can get their money back.

It is a lose-lose proposition from a marketing standpoint. Skewed results.

IMO those companies should stop being so cheap and give the marketing department a real budget to go out and conduct some real studies as to why their product sucks.

Well that is what I assume the company must think – otherwise why offer a “satisfaction guarantee”? Why not a “you are a loyal user and we’d like to reward you!” or “tell us why you loved muffy’s mush so much and we’ll give you your money back”. I’ve seen those before and I think those are marketing genius! They make a consumer put down in words what they liked about a product. This in turn makes Ms Consumer remember “I liked muffy’s mush” when she is shopping, and Ms Consumer will purchase muffy’s mush again.

So let’s say you do not love it or hate it. Or you do love it. Or you do hate the product. Instead of an specific reason, you could write: “Too expensive”. Nothing else, just “too expensive”. IMO everything I buy that costs me more than free is too expensive. It is also what I have written for years on just about every “satisfaction guarantee” offer I have participated in. Even if I hate the product I refuse to provide free input on why the product was lousy.

There are many reasons that manufacturers offer rebates: to reward loyalty, to get people to try a new product and slippage are just a few, but the “satisfaction guarantee” is just a cheapie way to get feedback about their product. They expect to pay the normal 2% – 5% off rebates consumers will redeem on any given offer.

As always, if you feel uncomfortable sending for a refund, do not send for it. But do educate yourself on the whys and wherefores about what is really going on with rebates, then make your decision.

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This entry was posted on Tuesday, February 23rd, 2010 at 6:06 am and is filed under Library. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

11 Responses to Satisfaction Guarantees
  1. Jay
    February 23, 2010 | 8:17 am

    I absolutely will respond to “satisfaction guarantees”. I did last week when I bought a loaf of bread that wasn’t 100% fresh. The company sent me 3 coupons for a free loaf.

  2. Liz
    February 23, 2010 | 10:38 am

    I am 50%/50%. If I am super unsatisfied then I will send it in – if the product is crap. I will also send it in if the product is so-so but the quality was nowhere near what it should have been given the cost. I will give a bye to a product if it’s not that good, but it was inexpensive. So I get what I paid for. I’m ok with that. But if I spent $10 & it performed like a $2 junk product, I will (or least try to remember) to send in the for guarantee if available.

  3. Renae @ Madame Deals
    February 23, 2010 | 10:58 am

    Favorite line of the day “IMO everything I buy that costs me more than free is too expensive.” Love it!

  4. cali
    February 23, 2010 | 12:17 pm

    This was really helpful. Thanks for taking the time to share it. I <3 you. :)

  5. Gita Weiner
    February 23, 2010 | 1:18 pm

    I’ve always felt uncomfortable with satisfaction guaranteed rebates and have stayed away from them. I would have no qualms about telling them exactly what I hated about a product if I really did hate it. I do that even when a rebate is not involved. I’ve taken advantage of the “Contact Us” feature of product sites to voice my complaints and most of the time it really pays off. They usually send you free coupons and it is definitely worth the time. In the unlikely event that you don’t get a positive response, at least you get a chance to vent.

    Some companies use the feedback to improve their products. When Tropicana changed their carton, I ended up buying the wrong variety. I used the “Contact Us” feature of their site to complain about the new design. They sent me back a very nice letter explaining their new carton coding (thick lines, thin lines, etc…) and they said that since I had bought the wrong variety, they would be sending me a coupon for a free product. The coupon arrived quickly and the explanation helped me get used to their new design. I was very surprised when a few months later I received another letter from them. Other people must have complained about the carton design because the letter said they were going back to their old design. Since I had been one of the people to write to them about the design, they were sending me another free product coupon. The few minutes it took to complain netted me two free product coupons plus an explanation that was helpful and it was nice to find out that Tropicana listens to its customers.

  6. annalisa
    February 23, 2010 | 2:55 pm

    FABULOUS post. :)

  7. DD
    February 23, 2010 | 4:03 pm

    awesome article, i didn’t know those were options to write down on the guarantee money back, i have however, encountered products i absolutely hate! and didn’t write to the company about it. I have since then just normally stick to what i know works, and doesn’t work. I will give a new product a try if it’s free, or i’ve been convinced somewhere along the line to try it out.
    thanks for this tip, i will definitely remember this from now on.

  8. Nichole
    February 23, 2010 | 6:21 pm

    Yes, I always use the contact us feature when I am unhappy about something. I have gotten a few freebies due to this. I also do this with restaurants if the service is lousy. I do NOT do it just to get freebies but I do it to keep the company informed on how their customers feel.
    I completely agree with this article though. They should just do a ‘try us free’ and ask for feedback. I never thought about the fact that the satisfaction guarantees are possible giving them incorrect information.

  9. Jen
    February 24, 2010 | 9:18 am

    I have to disagree with you. Companies put “Satisfaction guarantee” label on their product as an act of marketing. Having that label will increase sales because customers that were not sure if they’d be satisfied with a product may be more likely to buy since they have nothing to lose. However, only a small percentage of customers will actually request a refund if they are not satisfied, so that can be considered their marketing cost. In the end, they actually make more money by having that guarantee.

  10. Nichole
    February 24, 2010 | 2:37 pm

    Yes, the dispute is not whether or not they make money it’s over if they are getting accurate reasons for dissatisfaction.

  11. Jen
    February 24, 2010 | 2:45 pm

    I should have been clearer. I was disagreeing with this statement:

    “IMO those companies should stop being so cheap and give the marketing department a real budget to go out and conduct some real studies as to why their product sucks.”

    I don’t think companies are using the moneyback guarantee label as the only way to get feedback. Many companies also do a lot of product testing, focus groups, and other research to find out why their products suck. They do the moneyback guarantee to increase sales.

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