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How PLG Products Should Design a Self-Serve Refund Policy
Description
In this episode of Product-Led Growth with Fexingo, Lucas and Luna explore a surprisingly critical but often overlooked aspect of PLG strategy: the self-serve refund policy. They break down why a generous, no-questions-asked refund can actually reduce churn and accelerate enterprise deals, using the example of a fictional SaaS company that shifted from a strict 7-day window to a 60-day money-back guarantee. The hosts discuss the psychology of buyer risk, how refund policies interact with usage-based billing, and why the best PLG products treat refunds as a conversion lever rather than a cost center. Key topics include: the relationship between refund length and annual contract value, how to design refunds that align with time-to-value metrics, and why enterprise procurement teams flag short refund windows as a red flag. Lucas also shares data from a real-world A/B test showing a 12% increase in self-serve revenue after extending the refund period. No fluff, just actionable insights for PLG founders and product leaders.