4 ms·
A happy customer is potentially worth multiple other customers, a pissed off customer potentially costs you many other customers. Because the refund rate on eve
by programminggeek 13y ago
A happy customer is potentially worth multiple other customers, a pissed off customer potentially costs you many other customers. Because the refund rate on everything is basically single digits, you should do a refund.
Why? Because the end result is basically going to cost you a lot more in potential revenue than you are "saving" by not giving a refund. Say it costs you like 3% to do a refund, that is like $9 on a $300 product. That $9 savings is going to cost you hundreds of dollars in negative customer sentiment. If they lose a single sale because of this episode, they are at a net loss of $300 because they really wanted to save $9.
Even if you wanted to factor in customer acquisition costs at say $50 to get that sale, you can't get that $50 back because you spent it either way. More importantly, due to the negative publicity this is generating in the way of "Ignition Deck Scam" type pages on the internet, it is now going to cost them more to acquire new customers. So, that eats up even more of those measly $9 in savings.
No matter how you look at it not having a sane refund policy is costing them more than it is saving them by a mile. What a foolish and shortsighted way to run a business.