Giving consumers the flexibility to try new products without the worry of wasting their hard-earned funds, Money Back Guarantee promotions are taking off in the sales promotion arena. The simple mechanism offers a full money back guarantee for those who aren’t entirely satisfied with their purchase, kicked off by the consumer letting you know why they’re unhappy with the product.

Money Back Guarantee promotions are simple to run, but there are still some points to consider to ensure they help meet your objectives. Our quick guide will outline where Money Back Guarantee promotions work best and what should be thought about.


Why is a ‘Money Back Guarantee’ great?

  • Money Back Guarantee promotions are extremely low cost to deploy, requiring only print and design costs to be either incorporated into your packaging.
  • This mechanism conveys confidence in your product, showing you are certain that customers will enjoy it and want to purchase it again! In turn, this can garner trust within your audience base.
  • It adds an element of difference over your competition – with your product, the consumer has no risk. If they don’t like it, they get their money back… they wouldn’t get this with most of the other products on the shelves!
  • Consumers who don’t see themselves as your core audience members may be swayed to buy your product for the first time as they too have nothing to lose from stepping out of their comfort zone.
  • This mechanism is excellent when trialling products, with any consumers requesting their money back actually providing valuable feedback through the claim process.
  • It is less risky than many other promotional mechanisms as most consumers are unlikely to remember to claim unless they are severely dissatisfied


What needs to be considered?

  • It’s important to qualify what counts as unsatisfied before launching this type of promotional campaign. For example, if a customer left a product to go past its best before date and then didn’t like it, should you still be liable? It is important to ensure genuinely dissatisfied consumers feel they are listened to, whilst putting clear guidelines in place.
  • This is one of the harder mechanisms to calculate redemption rates for, especially for products new to the market, but it is by no means impossible! By working with a sales promotion agency, you will be guided by their years of experience and their vast database of industry knowledge. They will provide you with up-to-date and realistic promotional information to enable the redemption rate to be accurately estimated.
  • This mechanism doesn’t come with attention grabbing headlines – there are no cars or holidays being given away. But don’t underestimate the power of buyers who want quality over excitement, and the impact this can have on positive brand endorsement.


Case Study


Revlon wanted to guarantee customer satisfaction, within South Africa, of their Gel Envy Diamond Top Coat product through a money back guarantee.

A nationwide campaign was launched, which innovatively used WhatsApp to allow customers to upload their till receipt, saving both time and money for those the small proportion of those dissatisfied with the product. The use of positive marketing and bespoke hashtags led to real consumer buzz around the promotion and, ultimately, sales uplift for Revlon.

Mando provided promotional consultation, a fixed fee service to cover the face value of all money back claims, the set-up of all infrastructure including bank accounts, and the management of all validations.



Danone Danacol wanted to entice first-time purchasers of their health yogurt drink. Via a TV commercial, they challenged consumers to try the drink for 14 days. Those who believed the product brought little benefit to their cholesterol levels after the two weeks were promised a full money refund on their 3-pack purchase.

The promotion was so successful in increasing new customer purchases that it was rolled out throughout Europe, where it continued to entice consumers to give the product a try.

Mando provided promotional consultation, statistical analysis to predict redemption rates split by country, and a fixed fee service to cover the face value of all money back claims to eliminate all potential risk.