Don’t offer refunds

Research has shown that reversible decisions create less satisfaction by people. When we tell people that they can change their mind later on a decision, they will be less satisfied. In fact, in the long term, they are less happy than people who couldn’t change their mind. Researchers explain that with reversible decisions people continue to compare the different options. And this even after they have already taken the decision. Summarized in an easy way, this means that they are never finished with comparing their decision with what else could have been done. All this thinking finally makes them less satisfied.

But what does this mean for service design? It means that offering refunds or money back is in fact not helping them in the long-term. But it will make them think too much about it. They will continue to compare the product they have bought with all the other possibilities. Still, refunds are a good idea and an excellent service improvement. But the fact that you heavily advertise it can lead to unsatisfaction for the customer. 

Thus, I recommend that you don’t speak about refunds until the customers ask about it. 

If customers aren’t satisfied with the product, it is good practice to refund them. But don’t tell clients that they can change their mind later before the purchase.