Comments on: Friday Q&A: Should SaaS companies offer refunds?

By: Justin Stern

Justin Stern — Mon, 15 May 2017 13:54:03 +0000

We have a no-questions-asked refund policy for the most recent billing. And we’ve refunded up to 3 months of prior service in certain circumstances, but no further as we tend to feel like at some point it’s the customer’s responsibility to get in touch with us and cancel if they don’t like one of our products.

Have definitely found the no-questions-asked policy to be a net positive: I think it gives buyers a level of confidence, and we haven’t seen any real abuse of it. If one of our products/services isn’t right for someone, we want them to at least leave with a positive impression of us as a company, and hopefully still recommend us to others

By: omerzak

omerzak — Sun, 14 May 2017 23:16:23 +0000

Question: Suppose that a customer was unreasonable and got refund as per the recommended policy of not arguing with customers about refunds.

Suppose that some time later, the customer changes his mind and wants to avail himself of your service again. Would you accept him again as a customer?

If yes and if he again requests an unreasonable refund, will you give him a third chance?

By: Rick Spruill

Rick Spruill — Fri, 12 May 2017 21:25:34 +0000

We’re aligned with your thinking. If the product wasn’t a right fit, or wasn’t what they wanted, we take it as an opportunity to have them leave on a good note rather than putting up a fight. In today’s world, it’s the service at every experience that determines what people will say about you. It’s important to remember that customers can (and maybe will if its a bad one) talk about their experience with your business even after their gone.

Great stuff once again, Alex.

By: Harry @ GoalsOnTrack

Harry @ GoalsOnTrack — Fri, 12 May 2017 16:49:01 +0000

We’ll just give refunds regardless whether it’s reasonable or not. In our expierence, people very rarely request refunds unreasonably, if they’re not happy with something, offering them a refund is the least we can do. It’s good for business. Many people who got refunded actually come back again.

By: MancDev

MancDev — Fri, 12 May 2017 16:04:45 +0000

We used to have a very strict policy on this as we felt it was disrespectful that they didn’t take the time to tell us they wanted to cancel before their renewal goes through. If they’d cancelled their payment but didn’t tell us, as per our terms, we’d chase them for the money. However there are some who get refused a refund who just make a lot of noise and trouble, constant emails, threats of action and as said in the post it’s a distraction we don’t need, it gives brain-time with no benefit except the money they’ve paid but with the unseen consequences like the 20 potential customers they’ll tell who’ll never become customers. If you can’t turn them around to keep them and you know you’re in a for sh*t storm for the sake of giving them a refund – give them a refund, put that time into finding customers who actually want to pay you.

By: Eric

Eric — Fri, 12 May 2017 15:51:05 +0000

Another compelling reason to issue refunds (even when they’re unreasonable requests) is the chargeback. I’d rather cheerfully issue an unwarranted refund than deal with the time and cost of the dispute resolution process, which more often than not seems to amount to a coin flip.

By: Vince Smith

Vince Smith — Fri, 12 May 2017 15:44:10 +0000

Amen Alex!

I think the refund decision is an easy one when you are customer focused.

I will gladly issue a refund (like you said, within reason) if a customer is not satisfied with my service. Additionally, I would make it clear that they have the option throughout the sales funnel (less friction).

If the customer is being unreasonable, it just isn’t worth it to try and fight them on it. It’s just not worth it.

I understand that especially for a new start-up (not saying the OP’s startup is new), you cringe at the thought of a customer wanting a refund. Don’t beat yourself up about it. It will happen and you will survive.

Your business will be much better off (especially these days) if you are willing to give refunds.

#StayCustomerFocused

By: Laszlo Alt

Laszlo Alt — Fri, 12 May 2017 15:42:12 +0000

Many will find that a worse case scenario will turn around to become a great outcome if treated with kindness and care.