You're just ten slides away from learning how to address customers' potential concerns and anxieties and increase your sales as a result.

1. Heart Internet’s Tips in Ten
Addressing perceived risk
You’re just ten slides away from learning how to make your
customers feel happy and comfortable about buying from
your business.

2. What is perceived risk?
Perceived risk is a consumer's level of uncertainty
regarding the outcome of a purchase decision.
• Performance
• Physical
• Social
• Psychological
• Financial
• Time
It can include one or more of these factors:

3. What is perceived risk?
Perceived risk
Considered purchaseNon-considered purchase
High
Low
Level of involvement
(Note: This is relative to the individual/business)
High brand loyalty
Low brand loyalty
Low research High research

4. How important is perceived risk?
• Will the product perform as I expect?
• Can the product hurt me?
• What will my peers think?
• Am I morally doing the right thing?
• Can I afford the purchase?
• How much time and effort am I willing to
expend to make this purchase?
People seek out information that confirms
the wisdom of their decisions post-purchase
Considered
purchase
e.g. Phone
Non-considered
purchase
e.g. Milk
The risks involved:

5. What are the risk factors?
Performance risk
Will the product perform as I expect?
Reducing the risk:
• Prominent product USPs
• User reviews
• Awards
• Testimonials, case studies and quotes
• Performance statistics
• Previous successes

6. What are the risk factors?
Physical risk
Can the product hurt me (or my website)?
Reducing the risk:
• Safety standard awards
• SSL certificates
• 3rd party “approved” badges
• Hygiene/ safety awards

7. What are the risk factors?
Social risk
What will my peers think?
Reducing the risk:
• Display customer satisfaction data
• Positive reviews online
• Social media referrals
• Association with opinion leaders
• Celebrity endorsements
• Partnerships with other brands

8. What are the risk factors?
Psychological risk
Am I morally doing the right thing?
Reducing the risk:
What are the possible objections? E.g.
• Green credentials
• Supporting charities
• Sponsoring events and organisations

9. What are the risk factors?
Financial risk
Can I afford the purchase?
Reducing the risk:
• Breaking down the price e.g. monthly
• Comparison e.g. equivalent of a cup of coffee a day
• Competitor comparison
• Reassuring messages e.g. “Because you’re worth it”
• Money back guarantee
• Price discounts on initial purchase
• Free trial/sample

10. What are the risk factors?
Time risk
How much time am I willing to take to make this purchase?
Reducing the risk:
• Easy to find information about the product
• 1-Click ordering & upgrades
• Short sign-up process

11. Example
Risk factor Risk of this product Overcoming the risk
Financial Is this going to be too expensive? • Discount if you pay annually
• Money back guarantee
• Resell to clients and profit
Social Is this a company others trust? • Testimonials
• Award winning
• X% of our customers would recommend us
Performance How much data will be stored? • Backs up all your data
• Restore your backup at any time
Physical Will I lose any data? • Automatic backup done every day
Time Is this going to take a lot of time to manage? • Fully automated systems
Reseller Pro data back-up service