Direct Mail Lead Generation Sales Letters Work Best When You Refund Your Fee

by | May 18, 2016 | Direct Mail, Lead Generation

In the termite capital of the US, Tampa, Florida, lives a man by the name of Chet Rowland who generates direct mail sales leads by promoting his poorservice.

In his direct mail lead generation package he includes a copy of a letter he received from a disgruntled customer. The customer explains that Chet’s Termite and Pest Control failed to eradicate the customer’s termites, and that she had to request the company to come out and re-fumigate her home.

But what makes this customer letter different from most complaint letters is that this customer is writing to say she asked for her money back and got it. She thanks Chet for honouring what he calls his “exclusive, iron-clad, no wiggle room, simple, straightforward guarantee.”

To show potential customers that he keeps his word and honors his guarantees, Chet includes with this customer letter a photocopy of the refund check he gave to the unhappy customer. It’s for the full amount of $1,136.

The disgruntled customer goes on to say in her letter that she was thrilled that she didn’t have to threaten or argue to get Chet to uphold his money back guarantee, and that she is going to tell her friends and others about how fair, honest and pleasant Chet’s Termite and Pest Control is to do business with.

Chet says offering super strong guarantees gives him a competitive edge over other pest control companies. Competitors, he says, don’t have the guts to back what they sell with a money back guarantee. Plus, he only has to honor his guarantee a few times a year when he refunds his fee to a few customers that he can’t satisfy.

But the cost of refunding his fee in full a few times a year is worth the expense because of the extra selling power he gains by promoting his strong guarantee to potential customers. He says he even gets selling power by showing off the refund checks. You can do the same and generate similar results. Guaranteed.

If you’d like to read more about Chet’s approach, read No B.S. Direct Marketing by Dan Kennedy, chapter 15. Good book, terrible title.