The Value of New Refunds shows in real time the total amount your company is refunding customers because of substandard products or services they bought. This is a relevant metric for finance and customer support teams–but can even be necessary for product development to look into.
KPI Example
What is the Value of New Refunds?
Why is the Value of New Refunds important?
It’s very useful for companies to keep an eye on Value of New Refunds, so they have an accurate insight into revenue they are losing out on due to dissatisfied customers.
This insight allows your company to act quickly if this KPI becomes higher than usual, so the overall performance of your company isn’t affected. Moreover, you can also use this KPI to obtain valuable information for your customer service team, who are often the ones to deal with unsatisfied clients.
A high value of new refunds can mean that either the product requires adaptation to your clients' demands, or your team needs further training and motivation to increase customer satisfaction. In any case, this KPI will point you in the right direction to lower your number of refunds.
Best practices for Value of New Refunds
The best practice for Value of New Refunds is to reduce it.
If there’s a heavy influx of new refunds, well above and beyond your KPI, this probably points to a serious issue with your product development. Be sure that your product or service meets the demands of your ICP (ideal customer profile), and industry or market standards before release.
Be sure, too, that your customer service team is well-equipped to handle refunds and that, in general, they provide a fantastic customer experience.
Other, related KPIs to Value of New Refunds include:
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