I came across a pretty inspiring post called The Art of the Refund down at V7N’s blog today. It talks about how some online companies have a strict No Refunds policy while a number of bricks and mortar organisations will give you a refund and ask no questions. John Scott, the author, talks about how having a decent refund policy inspires trust in your customers and goes a long way towards building a lasting relationship.
Personally I believe this is the right way to go about things. One disgruntled customer can cause a huge amount of damage to your reputation and there’s nothing that upsets a customer more than paying for a product/service that doesn’t deliver. Instead of refusing a refund, use that customer to find out what doesn’t work for him/her and then incorporate that feedback in to your development process. Not only will you have the opportunity of winning back that customer, but your service would have matured into something that is more valuable for future customers.