The Benefits of Offering a Satisfaction Guarantee

Do you offer a guarantee for your services? It’s a very good thing for your business and one you should definitely consider. A satisfaction guarantee might read as follows: “If you are not pleased with the service you receive in the preparation of your tax return(s) and you choose to neither file them nor allow us to redo them, we will refund your fee in full.” Sometimes businesses are afraid to offer a guarantee, thinking too many clients will take advantage of the offer. But the number of clients that decide not to accept a tax return prepared by a reputable tax firm is quite insignificant; probably less than one-tenth of 1 percent. This is a very small price to pay to be able to tell prospective clients, “If you are not happy with the fee we charge for the return we prepare, you will not have to accept the return and you will owe us nothing.”

It will increase client satisfaction

If you have employees whose compensation is based entirely or in part by the fees realized for the returns they prepare, a satisfaction guarantee will incentivize your employees to satisfy your clients. If a client is not satisfied and you are unable to rectify the situation, you will need to honor your guarantee. Employees who are paid commissions should only be credited with revenue that you collect for returns that they prepare. Unfortunately, you may have to refund some client fees but it’s vital that you keep your promises to your clients. The way you handle client complaints and honor your guarantee can be the difference between retaining and losing a client over an honest mistake. In addition, your reputation is at stake.

Your guarantee adds value and is a differentiator

Be sure to communicate the benefits of your guarantee to your clients and prospects. The guarantee adds value to your service and can differentiate your practice from competitors. When there are no strings attached, and clients are afforded a “way out” if they are not satisfied, the decision to have their tax return prepared by you is much easier. Your policy should clearly state what the guarantee will provide to the client. Your clients are paying for your tax services, and your guarantee is an important part of that product. One method to try to keep that client, is to honor your guarantee and offer to prepare their tax return for free, or at a discount of 50%, the following year. The cost of free preparation next year is a small price to pay to retain a client. The lifetime value of each client is substantial. In addition, if you lose the client, he/she will most likely tell several other people about the negative experience.

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