Anyone willing to share their IAP refund rate?

Question

Created Jun ’16

Replies 3

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We have a Health & Fitness Freemium app with a tier-3 IAP to enable extra content. In recent months, we've been getting more refunds of this IAP than I would like, and I was wondering whether this is just par for the course, or whether other apps have lower (or higher) rates of refunds.

For us, the refund rate is between 1-2% of total sales.

What frustrates me is not the ability of the customer to get a refund, but that:

1) Although the customer is given the full purchase price back, Apple still keep their commission, so we lose out;

2) Apple do not provide any information to us about the reason for the refund, so we cannot try to adapt the app to make these customers happy enough to avoid the refund;

3) It does not seem to be feasible to detect the refund reliably in the receipt and remove the features from the customer, opening us up to people who just request a refund to avoid paying.

Thanks in advance.

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Answer 1

PBK OP

Jun ’16

>For us, the refund rate is between 1-2% of total sales.

And this presents a problem to you because....?

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Answer 2

tom-715 OP

Jun ’16

These users saw enough potential in the app and the free features to bother trying the IAP, but were then disappointed, and prepared to spend the effort to go through Apple's refund process. I would like to understand why, because then we can either add the functionality they hoped for, or make clearer that the app doesn't work that way. I'm assuming it's likely that there are other users similarly disappointed who didn't bother with the refund.

Knowing what other people see for refund rates would help us because if we are as good or better than others, then I should probably put it down to "there will always be some people you will never please"; if our refund rate is higher than others, then it would suggest that we might be able to do something about it.

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Answer 3

PBK OP

Jun ’16

"These users" are 1% of your users - focus on the 99%. By the way, they may be asking for refunds because they purchased by accident (e.g. 'my 3 year old son did it') or they are ripping you off. In all cases....1% isn't really an issue.

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