When a customer churns, it's in your best interest to part on good terms. Foster goodwill and positive word-of-mouth by giving refunds when they're requested.
According to @Ankit_Kaknut, he got his first customer for Growthfyi Headlines because of a refund. When a customer on a previous (SaaS) product asked for their money back, Ankit handed it over, despite having a "no refund" policy. Later, when he launched another project, he informed the ex-customer and they immediately bought it — like, within seconds. His earlier refund, it seems, fostered goodwill and trust which paid off in the end. And it likely helped to maintain his good reputation and elicit positive word-of-mouth. Just make sure to get a good understanding of what happened so that you can make improvements. And if you can't handle it from a cash flow perspective, consider shorter billing cycles.
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