We tracked every refund reason for 6 months.
We processed 214 refunds between January and June. Instead of just approving them, we tagged each one with a reason from a fixed list of 12 categories. Here is what came back:
"Too expensive for what it does" — 61 (28.5%)
"Didn't work as expected" — 44 (20.6%)
"Forgot I subscribed" — 33 (15.4%)
"Found a free alternative" — 27 (12.6%)
"Team member left / role changed" — 18 (8.4%)
"Billing error / double charge" — 14 (6.5%)
Everything else — 17 (7.9%)
The "forgot I subscribed" number was the one that changed how we operate. 33 people paid us and didn't remember. We added a pre-renewal email 7 days out with a one-click cancel link. Refunds in that category dropped to 4 in the following 6 months. The others stayed roughly flat.
The "too expensive" category was almost entirely users who had been on the plan for less than 14 days. That told us the problem was expectation-setting on the pricing page, not the price itself.
What reason would you guess is your biggest refund category? Have you actually tagged them, or are you guessing like we were?
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