Ask HN: How do you get over the pain of refund requests?
Every time I get a refund request I feel like I've been personally attacked -- often they're customers where its incredibly obvious that they're intentionally exploiting my favorable refund policy, and as such I shouldn't be insulted, but still, I feel it.
My refund rate is fairly low (less than 2% -- I've talked to other vendors in my niche and they report much higher refund rates). I have a prewritten response to refund requests that asks for feedback and offers a range of solutions -- in fact, it stops about 50% of refunds from being actually wanted. Its the other 50% that are mostly not in good faith anyway that are really bothering me.
I know I'm not alone here. Should I just be paying someone else to deal with my billing stuff entirely to separate my emotions from how things are going on the sales front?
17 comments
[ 3.1 ms ] story [ 55.9 ms ] threadWhen I first started http://anynewbooks.com, the occasional un-subscription or "Enough! Stop sending me emails." message would bother me a little.
Today, I don't even blink at unsubscribe notices. And when I get the occasional "Remove me!!!!111!!!!", I simply unsubscribe the person who doesn't understand that an unsubscribe link is provided.
No big deal. I know that refunds are a little more personal, but like most things in life, you get used to it. You'll grow a thicker skin.
Just focus on selling more copies of your product. And focus on improving your product for all those people who didn't ask for a refund.
If after issuing dozens of refunds you still can't get over it, then outsource it.
I'm in an extremely niche market for my best selling stuff, so selling more is likely going to involve new products. Something I am working on, of course. :)
1) Direct requestd for refund to a specific form on a page.
2) Have a virtual assistant receive such emails.
3) Instruct such assistant to issue legitimate requests for refund under whatever process you currently follow.
4) Ask her to forward bona-fide feedback to you. So that you can use it to improve your product.
5) At the end of each week or month, ask for stats.
This should prevent you from dealing with the issue first-hand, while still figuring out any real issue.
BTW, are you an Italian developer living in Canada, too?
However, I continue to offer the policy because my refund rate is low (about 1-2%) and the increase in sales due to the policy is substantially higher than that. The way that I see it, giving out a few refunds is a cost of doing business, and I don't begrudge refunds any more than I begrudge taxes, merchant fees or rent increases. Looking at refunds mathematically takes some of the pain out of paying them.
I'm also somewhat comforted by the fact that a refund policy is a way to resolve genuine client dissatisfaction: In my view, giving refunds to undeserving people is far preferable to clients actually leaving dissatisfied and possibly badmouthing my company.
1. It'll offer you an opportunity to get feedback which can help make your product better.
2. It can turn a hater into a net promoter if you do it right.
3. Direct outreach from the founder of a company makes your firm more human (not sure what industry you're in but in ours, people really appreciate it). It may not turn the "gamers" into buyers, but if you believe most people are good, they may be less inclined to game if you're not just some "evil business"
And although I also sometimes remember rejection more than successes, I find these requests motivate me.
Note: I've got no sense of volume you're dealing with so I'll caveat the above with that if it's becoming a time-suck.
We do have such a policy, but we do ask 'why?' in a manner that aims to clarify and improve our service. A subset of the users are nice enough to explain and sometimes addressing that root cause cuts refund rates by about 25%.
Btw, would you mind sharing the points in your refund response email template? I would assume the effectiveness would depend on the nature of product, but it'll still be educational me thinks.
It's really easy to turn a refund request into a repeat customer. If you're getting people "gaming" the system, change your policy.
"Its the other 50% that are mostly not in good faith anyway that are really bothering me." particularly "not in good faith"
If this is a subscription service, automate the refund process such that you can you can send a single email with a link that will let them provide feedback, cancel their service, and refund their money.
If you're selling software bits consider a serial number system that will allow you to remotely disable people who have requested refunds. Also, keep your refund policy but stop advertising it. This way you prevent bottom feeders from even knowing it's an option. If you notice this is costing you more sales than you gain, go back to advertising it and re-read paragraph one.