KPI Library
Value of Refunded Charges
Total amount of money your company has returned to customers for illegitimate credit card charges.
Total amount of money that your company has given back to customers for an illegitimate charge on their credit card.
Sometimes, a customer questions a charge from your company on their credit card, and it’s the organization that proves whether the charge was actually legitimate or not. When the result is that the charge was a mistake and shouldn’t have been done, the company proceeds with the refund of the charge made. This KPI, therefore, keeps track of the total amount of money that your company has had to pay back to customers after a wrong charge on their credit card. Usually, what this KPI shows is the money that shouldn’t have been charged in the first place, so it doesn’t necessarily relate to your MRR. However, it still gives you great insight into your finance and the Customer Service experience your customers are getting from your company. Moreover, visualizing this KPI can also help you spot a mistake in the communication or in your Customer Service, which might be leading your customer to misunderstand the terms and conditions more regularly than usual.
KPI Example
What is the Value of Refunded Charges?
The Value of Refunded Charges keeps track of the total amount of money your company has paid back to customers after incorrect charges on their credit cards. Usually, this KPI shows the money shouldn’t have been charged in the first place, so it doesn’t necessarily impact your MRR.
Sometimes, a customer questions a charge from a company on their credit card, and the company proves whether the charge was legitimate or not. If the result is that the charge was a mistake and shouldn’t have been made, the company proceeds with a refund of the charge.
This KPI is a particularly important metric for your finance team to track, not to mention your customer service team, too.
Why is the Value of Refunded Charges important?
While it’s a KPI you ultimately wish to avoid, the Value of Refunded Charges gives you great insight into the finance and customer service experience customers are getting from your company.
Moreover, visualizing this KPI can also help you spot mistakes in your customer service’s communication, which might be leading your customers to misunderstand the terms and conditions of purchase more regularly than usual.
Best practices for Value of Refunded Charges
The best practice for Value of Refunded Charges is to keep your customers happy.
If a customer has a complaint about an illegitimate charge, attend to their problem right away in a polite and efficient manner. This should go without saying, but refund their money as soon as possible! Be clear with your customer about the refund process.
Using these practices will ensure your customers remain satisfied and will continue to use your product or service in the future.
Other, related KPIs to Value of Refunded Charges include: