What are the negative impacts of money-back guarantee?

2 replies
Hi! As a Product Marketer, I'm in dilemma between offering a money-back guarantee or not. Selling a SaaS product is not easy. Some businesses offer a money-back guarantee as a credible way of customer acquisition. Can you actually measure its impact on customer satisfaction? Does it cause financial pain for the company? I'd love to know your experience on the topic.


Ivan Ralic
I see 30-day money-back guarantee as a pre-paid trial 😄 You get more money upfront but in case of return you have additional hustle to give that money back. I think that this hustle brings enough of complexity by itself. So I wouldn't advise on complicating your return process and policies any more than that. That's why most businesses have a no-questions-asked policy. It's simply easier 😄
Qudsia Ali
A money-back guarantee can be a positive for both the buyer and the seller. If you are the buyer, you will be able to purchase with less risk and spend less on products that fail to deliver. As a seller, having a money-back guarantee can help attract potential buyers since a guarantee can indicate confidence in the product. However, it is also important to understand that these policies often have negative impacts, such as limited time frames. Some people could suffer from these policies; others will benefit from them. While a money-back warranty may have some negative impacts, it often allows people to try the product before buying it.