Satisfaction Guarantee: Pros & Cons (+11 Examples to Follow)

“Satisfaction guaranteed or your money back.” “Try before you buy.” “Find a lower price and we’ll match it.”

A customer-friendly satisfaction guarantee can be great for sales since it reduces risk, establishes credibility, and reinforces your reputation.

But before you think about introducing this kind of policy, you need to know how to create a promise that resonates with customers.

I rounded up 11 examples that you can use to inspire your own satisfaction guarantee, along with tips to craft the right type of policy for your business.

Key Takeaways:

• Satisfaction guarantees can offer money back, returns, exchanges, price matches, free trials, and more.
• When done well, guarantees build trust, drive sales, and win you more loyal customers.
• Measuring return on investment (ROI) is essential for tracking the value this type of policy creates.

What Is a Satisfaction Guarantee?

A satisfaction guarantee is a policy that offers recourse to customers if they aren’t happy with their purchase. It’s a policy that commits to taking a certain action (like offering a refund) when customers express dissatisfaction.

This type of guarantee can be a great way to build customer trust. It shows that your company stands behind the quality of its products or services.

However, it’s not a one-size-fits-all policy.

There are several different types of satisfaction guarantees. Some of the most common options include:

• Replacement Guarantee: Provides an exchange for an item or service that doesn’t meet expectations
• Repair Guarantee: Offers to fix damaged or worn items (beyond a standard manufacturer warranty)
• Money-Back Guarantee: Refunds the purchase price for the item or service
• Price Match Guarantee: Adjusts the purchase price to align with a competitor’s pricing
• Lifetime Guarantee: Allows a free return, exchange, or refund for the life of the product or service

11 Customer Satisfaction Guarantee Examples

Use these examples as templates for your own customer satisfaction policy. Customize them so they fit your brand and your customer service goals.

1. Costco’s Risk-Free 100% Satisfaction Guarantee

Costco’s satisfaction guarantee is one of the most generous return policies. Which is one reason the company has such a loyal customer base.

The retailer offers to refund the purchase price on any product sold, aside from exceptions like gift cards and event tickets. The company doesn’t publicly state any time limits for returns.

As a membership-based retailer, Costco takes this guarantee one step further. The company also offers refunds on membership fees.

2. REI’s 100% Satisfaction Guarantee

While REI’s return policy has a time limit, it’s one of the most lenient. The outdoor clothing and gear retailer allows customers to return items they aren’t happy with for up to one year after the purchase date.

It’s important to note that this policy only applies to members of the REI Co-op, the company’s free loyalty program. Non-members can return items for up to 90 days after purchase.

There’s one major exception. REI always accepts returns for manufacturer defects, no matter the purchase date.

3. Osprey’s All Mighty Guarantee

Osprey’s All Mighty Guarantee is one of the few return policies that’s valid for the life of the product. But instead of allowing returns, it encourages customers to send in items for repairs.

Customers can send in backpacks and travel gear to have tears patched, zippers fixed, and buckles replaced.

The policy is designed to help customers get more value from their purchases. Which aligns with the company’s high standards for durability and functionality.

4. Olipop’s 45-Day Satisfaction Guarantee

For consumer packaged goods (CPG) companies that sell consumable items, a lifetime guarantee isn’t realistic. Instead, many have a 30-day or longer policy in place for returns.

Olipop’s 45-Day Satisfaction Guarantee is valid for 45 days after purchase from an authorized seller. The beverage company offers to provide a refund, send a replacement product, or let dissatisfied customers try a different product in its place.

5. Aldi’s Twice as Nice Guarantee

Most customer satisfaction guarantees offer a straightforward refund or exchange. But Aldi takes this policy a step further.

The Aldi Twice as Nice Guarantee offers a refund and a replacement. All customers have to do is return any unused product along with the packaging and receipt within 90 days of purchase.

This policy is designed to instill trust in the supermarket chain’s store brands. Since Aldi mainly sells white-labeled products, the guarantee increases buyer confidence in the items’ quality.

6. Orangetheory’s Money-Back Guarantee

Orangetheory’s 30-day guarantee lets members try the fitness center for a month. If they don’t feel completely satisfied, Orangetheory will refund their money and cancel their membership.

However, the fitness center requires members to put in the work.

To take advantage of this guarantee policy, members must take 12 classes during their first 30 days. This eliminates refund requests from members who aren’t committed to their purchase and 

7. Lowe’s Lowest Price Guarantee

Lowe’s Lowest Price Guarantee is a price matching policy that ensures customers get the best deal on their purchases. If customers find a better price at a competing retailer or ecommerce site, Lowe’s will match it.

This policy makes it easier for Lowe’s to compete on pricing while requiring customers to do the comparative shopping. It’s also helpful for improving customer loyalty since shoppers know they can get the best price at Lowe’s.

The downside?

The policy has a lot of exclusions, which may make it harder for occasional customers to decipher and take advantage. But for loyal Lowe’s shoppers, it’s a reliable satisfaction guarantee strategy.

8. Hyatt’s Best Rate Guarantee

Hyatt’s Best Rate Guarantee promises the lowest rate on hotel rooms. But it takes the standard policy a little further.

Along with matching a competing site’s room rate, Hyatt gives guests an option between receiving an additional 20% off the rate or 5,000 loyalty program points.

The only catch?

Guests must find the competing rate and submit the claim form within 24 hours of booking a room with Hyatt.

9. 100% Hampton Guarantee

One of the oldest hospitality customer satisfaction policies, the 100% Hampton Guarantee is designed to make sure guests leave happy with their stay.

Unlike many other guarantees, this policy doesn’t specifically provide money back or the best price on a room.

Instead, it aims to make sure guests are heard. It encourages guests to speak with a staff member about any requests to make sure their Hampton stay is the best it can be.

10. Terminix’s Nix Pest Guarantee

The Nix Pest Guarantee is Terminix’s approach to this type of guarantee. If customers notice a pest in their home after an extermination treatment, the company’s service team offers to return and resolve it at no additional cost.

This policy applies between sessions for customers with regularly scheduled treatments. For customers with one-off treatments, the policy is valid for 30 days.

While this policy might create extra unpaid work for Terminix, it’s an easy way to boost trust in the brand and stand behind the quality of the company’s work. Which may encourage customers to take the step to purchase a plan.

11. ActiveCampaign’s Free Trial Guarantee

Free trials give customers a risk-free way to test a product or service prior to making a purchase. They can be great for improving conversions because they help customers answer questions or address objections before committing.

However, many free trials require customers to pay shipping costs or provide credit card information for a paid plan that automatically starts after the trial ends. So they aren’t exactly free.

ActiveCampaign’s free trial is different. Prospective customers can sign up for a 14-day trial by providing only their email address—no credit card necessary. When the trial ends, they can decide whether to pay for the software.

Should Your Company Have a Satisfaction Guarantee?

Implementing a guarantee policy can be a smart idea. But not every type of guarantee is right for every business.

I’ve broken down the pros and cons and shared a few tips to measure ROI so you can craft the best policy for your company.

Perks of Offering a Customer Satisfaction Guarantee

The biggest benefit of offering a guarantee is the trust you build.

When customers understand that you believe in your products and services, they perceive less risk. This often makes them feel more confident in their purchase, which improves the customer experience.

Plus, it eliminates any sense of buyer’s remorse. Customers know they have an alternative option (like getting their money back) if they aren’t completely happy with what they bought.

Offering money back, returns, or exchanges with no questions asked can limit the negative feedback your brand receives, too. This can translate to fewer negative reviews, improving your business’s ratings online.

Particularly generous policies can also help your brand stand out from the competition. For example, offering a lifetime guarantee sets your company apart and highlights your excellent customer service.

Downsides of Offering of a Satisfaction Guarantee

No matter what type of guarantee your company offers, it can have drawbacks.

The biggest issue I’ve seen is the cost. Offering money back or price matches can get expensive. Especially if your policy proves to be popular with customers or if you offer a lifetime guarantee.

Any returns you collect can also create inventory issues. If you can’t resell the items, you could end up having to take the loss.

In extreme cases, you could find that customers abuse the policy. Some might define “complete satisfaction” differently than you intended, using the policy to repeatedly test and return products.

Plus, how you word the policy can have unanticipated legal implications. Before you publish a satisfaction guarantee and communicate it to customers, have a legal expert review the terms and conditions.

ROI of a Customer Satisfaction Guarantee

How do you make sure the upsides outweigh the downsides? Estimate the ROI of your policy.

• Add up the costs. The costs of your guarantee will typically center on refunds, replacement items, and shipping. But they might also include providing extra customer support and promoting the policy.
• Analyze sales and revenue metrics. Evaluate the number of orders, average order value, and total revenue. Compare data from before and after implementing the satisfaction guarantee.
• Track customer engagement metrics. Review how long you retain customers and how quickly you acquire them. Has your customer acquisition timeline decreased? Do customers make more repeat purchases?
• Monitor customer satisfaction levels. Check online ratings and use surveys to analyze customer satisfaction. Do customers trust your brand more? Are they more likely to recommend it to friends and family?

Watch these metrics over time and use the insights to guide your policy.

Say you find that the increased sales and customer satisfaction far outweigh the costs. It may be in your best interest to promote the policy more widely to generate a higher ROI.

Conclusion

A well-designed satisfaction guarantee can win you more customers and make your brand stand out from the competition.

But you have to get the policy right.

Use the right time frame, make the terms and conditions airtight, and measure the ROI. This is the key to creating a policy that benefits your business and makes customers happy.