A/B Test Idea: Money Back Guarantee
A money back guarantee is one of the most recognizable marketing tactics in modern commerce. It is often used to reassure consumers that they are not being taken advantage of, and that they can trust the company they are doing business with.
While there are some costs associated with a money back guarantee, it’s always a good idea to run an experiment and see track how many customers take advantage of the money back guarantee and whether revenues overall are getting a positive lift in the long run.
Because of this, it would be beneficial for companies to split their customers into two groups, and offer one group a money back guarantee and the other group a deal that does not include a money back guarantee. The group that is offered the money back guarantee would be more likely to buy the product, because they would feel more confident about the product they are buying. For those in the other variation that is not offered the money back guarantee, it would be a good idea to understand whether or not the money back guarantee affects sales backed by by data.
Why we think this is a Good A/B Test:
Giving customers more peace of mind by offering a money back guarantee has been a tried, tested and true method to engender more trust to get more customers over the hurdle with a new or unfamiliar product. Try it out, see how it affects sales over a 60 day period of time to try to understand what percentage of customers take advantage of the money back guarantee. You will be surprised at what the data yields!