How important is the length of the Money Back Guarantee period to you?
My product is a digital download / web component mostly purchased by other companies.
I’m considering switching from a 30 day money back guarantee to offering a full year. It’s basically what I do anyway, if someone’s not happy and hasn’t exhausted support I don’t mind refunding. Currently I estimate around 2% of clients ask for a refund.
I’m wondering if 30 days vs a year would make a difference to you if you are interested in purchasing a product?
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Yes, it would. Psychologically, a year tells me that, as a company, you believe in what you are putting out and you have faith that you'll be around (for at least a year) to support it. Because of this, I'm more likely to upgrade in a year if you've got an annual update cycle.
30 days isn't bad, but it also smacks a little bit of big box retail and a physical product.
Hope this helps!
Thanks. Super valuable feedback! Hadn’t considered this
I second this! It definitely shows me as a customer you're so confident in your product that you know I'll not refund it and also in case I want a refund, you put the customer's feelings (wanting a refund) above money (losing money even though you provided already service for x amount of time).
Exactly! A high level of customer service is what will delineate you from your competition.
There is an extensive research which shows that there is a rapidly diminishing effect with the increasing MBG length above certain threshold (however research mostly focuses on retail product). This can be backed by economy and psychology as well. So you can try the longer period for sure, but I won't be surprised if it won't meter too much at the end of the day. Many cases free trial works better than MBG for services.
Thanks! I’m going to experiment with a free trial as well. Would be interesting to see how they compare.
I guess if it doesn’t make a difference it at least communicates confidence in the product, which would be nice.
Is this for a one time purchase or a subscription?
It’s a yearly subscription / paid per year (no monthly option)
Some payment processors only allow 180 days for refunds. We offer 30 day money back guarantee but no one has asked for a refund yet in 2 years :)
Hm okay, I always imagined a refund would be just money going from my bank account back to the customer?