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Comments and questions from
readers...
100% completely agree with you on this one. At the start of my practise, I
was talked out of doing this but you have restored my faith. My next call
and my website will offer a 100% guarantee. You're right that the risk is
low, it helps us keep our standards high and it also makes us work within
a paradigm of trust and value...as coaches should.
(In one of my past lives, I led the national Customer Satisfaction
initiative at XXXXX as well as another national change management program.
It was then I became a believer years ago.)
Thomas responds...
Yes, it's time that coaching operates like standard businesses operate.
And, as you say, it puts coaching in that favored paradigm of trust and
value.
If I am coaching a person for a year and that person want his/hers money
back, is the last month or the whole year refunded? Going for the whole
year seems to unbalance the equation to much.
Thomas responds...
Yes, I agree. Each coach can set their own time limits but I would let
clients know that if anytime during the month, they are disatisified, that
I'll refund that month's fees. You can make it a no question asked type
of refund or require that clients write you 3 paragraphs on what,
specifically, you did or did not do that caused their dissatisfaction.
That way you get some background.
I have been toying with this idea and here is what stops me: do you put in
a caveat about the client's responsibility and action or do you wrap that
up in our responsibility for only accepting the ""right"" clients?
Thanks for the information, thought-provokers, and calls to action.
Thomas responds...
The degree and source of 'responsibility' of the client is a tricky
question. How much should they be responsible for their own success and
for their success with us? And how much should we be responsible for the
quality of our coaching. Many coaches have a list of Client
Responsibilities and Coach Responsibilities that they share with potential
clients and get them to sign as part of the engagement process. That way,
the policy is clear to both parties, in advance. And the the clearer the
policy is, the fewer times a client will irresponsibly ask for a refund
that really isn't due them.
Interesting lesson. I think all coaches should touch base with their
clients at the end of the month and refund their money if they aren't
satisfied. However, advertising it feels a little too much like the Ginsu
knife, just plain tacky.
Thomas responds...
Yes, I agree. There can be a way to share/state this policy without
running a red and black 24 point type headline, which doesn't make it look
like overkill. I say, bring it up during the enrollment process as an
important 'aside/fyi.'
My flyer which advertises my Incredible Sales Program is high- lighted in
red print, one sentence of which reads:."".Our program is measurable.
Moreover, it lasts a lifetime and it's satisfaction guaranteed"" This
guarantee works-prospects like it and they trust that money will be
returned, no questions asked. No one ever requested money back...the
program shows almost immediate results..
I have always felt strongly that offering a guarantee is smart business.
Many coaches have told me otherwise. Mainly, because the client does the
work.
My question is do we offer a conditional guarantee or unconditional
guarantee, and if so, what are the stipulations? Would it be something
like, as long as you follow steps a-z and don’t feel you have received
benefit, then you are entitled to a full refund”?
Thanks for challenging us to do this.
Thomas responds...
Well, first, both the client and coach do the work. This whole 'the client
does the work thing' isn't really accurate. True, it's the client's life
but when I coach I AM WORKING to help the client make the most of their
situation. I'm not doing their work for them; I'm doing MY work for them
and because I'm a professional, not a babysitter.
I've responded to the conditional/unconditional question elsewhere on this
page.
Hi, I agree that it should be 100% guarantee. MLM systems has used it as a
sales pitch for years. And it is good for people that wants to try
something new with no risk. The question is for how long should this
guarantee last? Can a person ask form money back after a year... ""Thanks
for your advice but this is not working for me...""
Thomas responds...
No, unless there has been a material misrepresentation by the coach, or
harm done.
No questions, just agreement. Thanks to my coach, who offers a 100%
guarantee, I recently began to include this in my practice. It was a
little scary at first. For all of the reasons you listed, though, it feels
very good. I think it also helps people who want to refer clients to you,
knowing that their referrals are not risking anything, either. I also have
a great model in my husband's industry. He works for [a high end car
company] and has told me that there have been times when [a high end car
company] would totally refund the purchase price of an automobile when,
after a few days, the customer just didn't want or like the vehicle. [a
high end car company] also believes in total satisfaction.
Thanks for putting this issue out in the open.
Thomas responds...
You are welcome.
Thanks for the 100% Guarantee suggestion. I like the idea a lot AND it has
been a scary step for me to implement, even though most everyone I work
with is very satisfied. But I am ready to do it now.
Here's my question:
How do you frame the guarantee in terms of when the client must let you
know in order to have a refund? In other words, they need to let you know
by ..........? if they are not satisfied.
My inclination would be to land on the side of being accommodating in any
situation where a client was not satisfied. But I wouldn't want an
occasional "abuser" call six months later and say, the last six months (or
those two months we worked together) really didn't do what I wanted, so I
want that money refunded<g>. This is probably quite unlikely but I think
the guarantee needs to be specified in this regard.
What do you suggest?
Thomas responds...
Yes, term limits can be outlined in the agreement they sign. And, it's
highly unlikely that someone is going to ask for six months refund. It
might happen once, if ever, during your career. If it happens, pay it and
move on.
I used to work at a temping agency that gave a 110% guarantee. It was
brilliant- it really caught clients attention. They'd say ""I bet you hate
it when you have to give one"". Actually we love it- it was so much easier
to give the 110% refund than try to fix the issue any other way. It would
completely exceed their expectations and defuse a difficult situation.
I plan to offer a 101% guarantee (OK I'm cheap!)
Thomas responds...
Well said.
My first reaction was ""no"", but you make a compelling case. If I (or any
coach) have enough confidence in my abilities, I should have the guts to
offer a guarantee. Enticing new clients by giving them a no-risk option is
also a very, very good point. I have a couple of questions on implementing
this below.
Thomas responds...
Yes, it does take courage. Because it's not fun to write a check for $500
or $1,000. But what better way to learn how to coach better or to not
work with 'that' type of client again? Small price to pay, in my view.
Do you have suggestions on how to formally state the guarantee?
Thomas responds...
Yes, here's an example of what you could write or
say to a potential client.
One of the features of my practice is that I offer a guarantee of
satisfaction that is backed up by an offer to refund the coaching fees for
the current month if you that our coaching relationship isn't proving to
be effective for you, either because our styles are not a match, or
because you feel that I have not delivered what was promised. All I ask
is that you send me an email outlining the one thing that I should/could
have done better in order to have kept your business.
I love the topics being offered in the Full Practice course this week.
However, I would like to challenge the emphasis in the ""100% Money Back
Guarantee"" lesson on the offer incenting the coach to work harder.
I offer a money-back guarantee and I think point #2 is very overstated.
I don't see that this makes me a better coach as I do not think about how
I am with a client because of the guarantee. I work with a client in the
moment, in the best way I can, not with my welfare dancing out in front of
me.
I do agree that this is an important offer to be making and that clients
should expect it.
Thomas responds...
Okay, thanks. All I can say is that it makes me a better coach.
You are way off base on this one. I understand what you are suggesting
with a money back guarantee and it is something I offer for a workshop or
one time training experience. As for a one on one coaching relationship
you are overlooking a significant element to the coaching relationship.
That element is the level of engagement and the commitment to the
relationship that has to come from the client. There is a responsibility
for getting what the client needs from the coaching relationship that
equally lies with the client. Giving a money back guarantee removes that
responsibility from the client and places it all on the coach. This is dis-empowering
for the client. Coaches who assume all the responsibility for the success
of their clients are inviting rapid burnout for themselves, and the
relationship is doomed to fail. Isn't this client responsibility why
coaches bill in advance for services? Also what would you do with a client
you have had for
a long time and they asked for their money back? How much would you give
them, everything they have paid you? The fee for that one session? This is
a Pandora's box!
You make several good points about what the coaching profession needs to
grow in this lesson. Is a money back guarantee the best answer? You are
right about people beginning to expect it from marketers in every
industry, and that diminishes the value of it as it merely becomes a
marketing come on. Coaching will grow because it is inherently valuable to
people, not because people think they can get their money back.
I am appreciating many of your other ideas presented in this program. Not
this one though.
Thomas responds...
Offering a money back guarantee doesn't mean that the coach is taking all
of the responsibility for the client. It means that the coach stands
behind their work. Big difference.
How many nutrition counselors offer a money back guarantee? When it comes
to food and health, something that so many of us have tried and failed a
zillion times, a guarantee can certainly take the edge off working with
me. And you know what? I KNOW what I do works. I found offering a money
back guarantee has really empowered me to only take on the clients that I
WANT to work with, and not just because I need the money or clients.
Each time I've introduced my guarantee policy, my prospect's eyes open
really wide. I knew I was on the something. And I don't know any other
nutrition professional who does the same. You're right - offering a
guarantee really puts me in a whole new playing field. From the type of
client I work with, from really letting prospects know me and my style of
coaching, to confidence and much more!
I don't worry about giving people their money back. I just don't take on
clients that I can't do great work with. And I let my prospects know that
too (Welcome, I'm glad you are here. The reason I offer a free
consultation, is not only for you to get to know me and what I do, but for
me to see if YOU are the type of client I want to work with. You see, I'm
pretty selective about whom I work with.) you get the idea. Should an
uncooperative client make it through my prescreening process, I certainly
reserve the right to terminate our coaching relationship - not with out
some rescue efforts on my part, of course. It's simple!
PS - I can't take credit for this idea. Working with my biz coach, [name
deleted], has made ALL the difference! (She too offers a money back
guarantee.)
Thomas responds...
Bravo!
I couldn’t agree more. One of my passions (and job while transitioning to
coaching) is Customer Service. And offering 100% guarantee is great
customer service. Otherwise what would the customer expect? It is the
standard today from Eddie Bauer to Kmart. For anyone not offering a
guarantee, they will be left behind; it is just another credibility issue
to add to our quiver.
Keep up the good work.
Thomas responds...
Yes, what's going to drive/support the money back guarantee is that the
coaches who offer it will appeal more to the marketplace; the coaches who
don't will be at a competitive disadvantage; small at first, but ever
increasing. That said, many coaches won't 'have to' offer a guarantee
because they have a strong enough reputation and/or a strong referral
engine. That gives them quite an advantage by itself.
The 100% guarantee is a winner. I especially agree with the part about
making coaches more careful.
I just asked for my money back from a Master Certified, Mentor, Jumpstart,
etc., Coach, who created expectations using a vague New Age jargon. I
thought I understood but we were not on the same page.
Coaches should use simple English when creating expectations.
Athletic coaches create the game plan with the x's and o's. They critique
individual performance. Cheerleaders wave pompoms no matter what. When I
heard the term ""coach,"" I expected x's and o's and I got pompoms.
Moral: It is up to the coach to explain what will happen. The client won't
have the concepts or vocabulary. And the coach should be very honest. My
coach kept saying, ""You're doing great"" when in reality she knew I was
doing horribly and was moving very slowly. The coach could say, ""It may
be harder for you than for some people, and take you longer, but you can
get there."" Then the client can decide if the goal is worth the struggle.
Thomas responds...
Extremely well said and helpful. And I love the pompom thing. Brilliant.
I always have been and advocate of 100% Satisfaction Guarantee. I operated
a different business for twenty years based on that practice and paid many
times over to me.
Now in the coaching arena I am doing the same and I am glad to know that I
am not alone. You are totally right, the ""client knows"" when they are
not fulfilling the agreement to provide ""power"" to the coach by being
coachable. So most likely they will not ask for a refund.
I go one step farther, when I am not able to move the client back to the
original position of communication and production of value and see their
interest is gone I send them a check with the money they have paid me and
tell them that I am terminating the coaching relationship.
I have done it twice and now my ex clients are estatic about the
experience. These two clients have provided more referrals for me than the
average client.
I just wanted to share that with you.
Thomas responds...
Fascinating...And one caveat is that coaches can't/shouldn't drop clients
unilaterally. Possible legal issues (client abandonment IS a legal
problem) and ethical/professional ones. Not to mention it's cold. AND it
usually means that coach hasn't been properly communicating before this
event. Several conversations should have occurred before letting a client
go.
Yes this is the only way to go. I personally just say it to my clients at
the beginning. However, it would be good to find a way that suits me to
put this on paper. I don't like big flashy in your face stuff or obviously
selling myself at all (I prefer to naturally attract) but I do like
integrity and honesty and decency and honour. I await with interest your
recommendations/suggestions. For your information the following is approx
what I say:
""Such is my confidence in you and our ability to work together that if
you are not satisfied with your progress in 3 months I will happily make
you a refund"".
The key of course is picking the right people in the first place. I don't
see any point in picking the wrong ones because I wont be able to help
them anyway and I'll have a rotten, stressful, time. I have chosen
coaching after all because of my heartfelt lifelong desire to uplift
humanity and I want to have a great time doing it. So that's the answer
isn't it? Be sure you have a good match, that you resonate with the person
you are working with and you can't help but guarantee satisfaction.
Thomas responds...
Well said.
I'll match your FIVE [Reasons to offer a Satisfaction Guarantee]
and raise you ONE big one! :- )
Hint......
it's not even about the customer.
For me, the offering of a satisfaction guarantee is a PURELY SELFISH act.
It means the abundance I enjoy is solid.
It is built ONLY on the energy of joy ~ generosity ~ gifts freely given.
It's as good as gravity, man...
Thomas responds...
Yep!
Good day Thomas, a question if I may: When you give a guarantee such as
this would you not have to have a way of measuring what the standard of
satisfaction is? ""Satisfaction guaranteed"" is very vague and open to
many interpretations is it not?
Thomas responds...
Yes, see my wording example elsewhere in this document for ideas.
I am a participant in the FullPrax100 course and this guarantee issue is
one that is of great interest to me because I know it addresses the
significant issue of potential clients feeling they may not get value for
the fees they pay. I have thought a lot about this issue and think that
there are 2 aspects of the coaching relationship that differentiate it
from tax preparation or selling a chocolate bar: 1) the relationship in
most cases will span a series of months or years and most likely involve a
changing set of issues and goals and 2) the success of the relationship
depends as much or more on the efforts and interest of the client as that
of the coach. Based on those aspects of the relationship, I think that an
effective guarantee could be structured as follows: the ""satisfaction""
or ""performance"" guarantee would provide that, if at any time during a
month (this assumes a monthly fee coaching arrangement) the client was
unhappy for whatever reason with the performance or services of the coach,
t e coach would refund the fee for that month and, presumably, the
arrangement would end. This arrangement not only addresses all of the
points made in your FullPrax #61 but also puts responsibility on the
client to, on a consistent basis, evaluate the coaching relationship. If
it is no longer working (or doesn't work from the beginning), the client
can terminate the relationship without paying for services the client does
not value.
I would appreciate your input.
Thomas responds...
Well said.
I haven't offered this to my one on one clients...but I offer this to my
big ticket item corporate clients...
A deal I am about to do this Monday is for a company with a [xx]% staff
turn over rate...they want it reduced to [xx]%...they have estimated that
this costs them [xx] million a year..My offer is 100% guarantee, 2 year
project at least $[xx] to me if we hit the target....great deal for
them...no risk...great deal for me (great return and I will make sure we
hit the target...)
Thomas responds...
Wow. Performance pay. Which is the future of consulting anyway.
Coaching too, in some cases.
Implementation question:
What boundaries, if any, on the scope of the guarantee would you
recommend, either/both stated to the client or used by the coach? I'm
concerned about either my not picking up on a client who feels okay about
using me for several months, and then asking for the multi-month fee back,
or my not setting an internal boundary to prevent me from continuing on
with a client who says they want to work, but I can tell isn't going to
get much of anywhere.
Thomas responds...
See my sample letter above which limits the refund to the current month.
I have been using this since I have formally started my coaching practice
(quit my day job) in May of this year. I took the model because I know it
works. I had participated in many personal development courses by [company
name deleted] and they offered the same deal for any course you took with
them. I know that it was very rare that anyone ask for their money back.
I believe it has helped me have a high percentage in converting free
coaching intros into clients. At one point, I had done 18 intros and
converted 10 clients. I took the [course name deleted] and tracked this
during that class.
At this point, I have not had any clients ask for refunds.
Thomas responds...
Well said, thanks.
Thomas, I offer my clients their money back if, after the first month they
let me know in writing that they want this. This means that people who pay
up front for 3 months of coaching (for which they also get a good
discount) will get it all back. I like the ""in writing"" part because
there isn't any confusion about who said what and the chance that I might
get some info about what wasn't working for them exists. No one has ever
taken me up on this, by the way. I'm wondering if you mean that you give
back all the money if you have been working with someone for 5 or 6 months
and they want it back because they need to pay for their grandmother's
funeral. I'm also considering doing this for workshops.
Thomas responds...
Very helpful, thanks.
Your readers might be interested to learn that ICF will implement a
procedure to deal with ethics complaints, beginning in 2002. The coach who
fails to refund money on request may find him/herself dealing with ICF and
other resources.
Thomas responds...
Interesting. [I have not verified the above.]
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