Encouraging trends for 2021 – Money Back Guarantee, Try Me Free
Team Umbrella / May 2021
We’ve seen a real encouraging trend emerging during 2021.
Not only are more brands choosing to run Money Back Guarantee’s on their products, but they’re also showing incredible sales uplift as a result.
Applying psychology to the way you run a Try Me Free promotion
We run hundreds of promotions a year so have a rich data source to tap into. And that throws up some really interesting facts.
You will be familiar with the technique of asking a consumer to write 15 words about a product to be eligible for their money back. This obviously presents an additional hurdle and a drop-off rate, saving the brand money.
But why do some promoters request 15 words they LIKE about the product and some will ask for 15 words they DISLIKE about it?
The typical British consumer feels uncomfortable about being asked why they DISLIKE a product. A shocking fact indeed!
In fact the typical British consumer is 8 times more likely to provide 15 words if they are allowed to write something positive about the product.
So what does this mean for the redemption rates and associated costs of running a TRY ME FREE?
It means whilst a TRY ME FREE headline remains one of the strongest for on-shelf standout and sales uplift, it can achieve all that for a much smaller cost if you ask the consumer to write what they DISLIKE about a product in order to claim their full refund. In fact this approach will cost 95% less than simply asking the consumer to mail in a receipt.
Umbrella can advise you of the right balance and work through likely redemption rates with you. We’ll even cap your costs so you have no sleepless nights worrying about a freak redemption rate.