When potential customers fear commitment

It’s a lesson I learned as both a teacher and then a parent: create a safe environment for kids to experiment and try new things and they’ll likely surprise you in pleasant ways. It would seem that principle also applies to consumers, who, when trying (buying) something for the first time, generally like to limit their downside risk. That’s why “satisfaction guaranteed, or your money back” offers are so commonplace and so alluring. It’s why many successful retailers (Costco, Nordstrom’s) have a “no questions asked” return policy.

I discovered the power of limited-risk purchases firsthand this summer, almost accidentally. My wife and I are a little more than a year into our Spanish immersion preschool venture. Frankly, it’s been a hard road—significant capital investment, zoning ordinances and regulatory compliance, first-year enrollment that fell short of the break-even point. I came to truly understand why so many businesses fail due to lack of capitalization.

But it appears we turned the corner just in the last six weeks and I’m fairly convinced it’s because we gave potential clients the opportunity to experience our “product” (which we happen to think is exceptional) at little risk to them. Our summer “camps,” which we offered largely because we needed revenue—any revenue—were themed weeks covering subjects we thought would be appealing to kids and parents alike (art with recycled materials, Diego Rivera and Frida Kahlo, Latin American cooking). Truth be told, these camps are really no different than a typical week at our preschool during the year, but “camp” is the preferred terminology for the season. Perhaps it’s because “camp” doesn’t imply commitment. It’s temporary and fleeting.

Prospective parents who were curious about our school but might have had fears about how their child would fare in a Spanish speaking environment or wondered whether this was truly an enriching early childhood experience rather than a gimmick, now had the opportunity to take us for a test drive, for the relatively small cost of just $119. People could sign up for just one week. The potential downside was limited. If it didn’t work out, they wouldn’t have to come back and their kids would have experienced something new and different.

Many new people tried our summer camps. Kids went home and couldn’t stop talking about the school. Parents loved what they saw and loved the enthusiasm from their children. And many decided to enroll their children for the school year. As I write this, we’re looking to expand our program to offer afternoon preschool and our waiting list grows each week. We always knew that if we could just get people in the door, we would succeed. We discovered that our low-risk camps were the perfect vehicle for introducing the school to a wider audience.

How can you make your business safe to try? A free consultation (don’t say “initial”—that implies future obligation)? What about making your product or service available at a charity silent auction, where someone might get something at a price well below market rate? Or giving away your expertise on your own blog? Perhaps a free seminar, free product samples, or a free, downloadable report (like a top ten list, which people can’t resist). How else could people try before they buy?