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Reducing the risk

Reducing the risk

After understanding the risk level for customers or consumers, and the types of purchases they could make, there are several actions you can take to assist in minimising the impact of the risk for your customer or consumer:

  • Reviews: Include reviews on your website. Testimonials have been reported to help build and convey trust. They are seen to be genuine recommendations that are not biased by the business.
  • Returns, guarantees, return policies: Be clear about return policies and the guarantees or warranties that support your product: returns policies and guarantees or warranties reduces the risks for customers or consumers. They can increase the confidence of your customer or consumer that if the product or service does not meet their expectations, then they can return the item for a refund or a replacement.
  • Staff: Ensure you have trained support staff on the chat line who can discuss the product or service in detail and answer questions. Customers and consumers like help from real people who genuinely care about helping them resolve their problems.
  • Samples: Providing free samples can help reduce the risk for customers or consumers by increasing their familiarity with your offering.
  • Special offers: Providing introductory offer pricing (including trial periods for online services) can help to reduce the risk and assist customers and consumers in trialing your products or services for less financial outlay.

Keep in mind that the degree of involvement will vary for each customer or consumer based on their level of familiarity with your brand, the product (or competitor products), the category of products or services, and the type of purchase. It is important to determine the level of involvement and type of purchase and provide the right solutions to make the purchase lower risk and more convenient for the customer or consumer.

Case Study

After identifying some psychographic characteristics of her customers Lee has found a percentage of her customers enjoy reading online articles, shopping online for clothes and they also appreciate art.

Lee thinks this is a great start but she is now concerned that some of the homewares products that she’s planning on selling are quite expensive and some are also quite fragile. She’s worried that this may make customers think twice about purchasing these products online from her site.

What actions could Lee take to reduce the risk to her customers and consumers? Discuss in the Comments section.

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This article is from the free online course:

Online Business: Customer Profiling for Success

RMIT University