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Do experiments consider refunds?


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Hi,

I was wondering when interpreting the LTV of a user, is the Experiments feature also considering if a user cancels and requests a refund? 

Best,

Daniel

Best answer by tina

Hi @Daniel 

Refunds are fully excluded from experiment results. For customers that have opted out of renewal (cancel), we will count their revenue generated previously. For example let’s say a customer renewed their subscription 5 times, but refunded the last transaction. The LTV model will consider the first 4 renewal’s revenue. 

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3 replies

tina
RevenueCat Staff
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  • RevenueCat Staff
  • 338 replies
  • Answer
  • January 15, 2022

Hi @Daniel 

Refunds are fully excluded from experiment results. For customers that have opted out of renewal (cancel), we will count their revenue generated previously. For example let’s say a customer renewed their subscription 5 times, but refunded the last transaction. The LTV model will consider the first 4 renewal’s revenue. 


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  • Dedicated Member
  • 15 replies
  • February 22, 2024

Can you please clarify “Refunds are fully excluded from experiment results”. That could mean that you ignore that refunds happened. Or it could mean that if a refund happens you take that refund into account when calculating revenue from that customer. Or it could mean that if a customer refunds, you remove that customer from the experiment data. What we really want is full accounting that counts that customer as part of the experiment but resulted in no revenue. Specifically showing refunds in the results may be helpful. Thanks.

 


tobysola1
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  • Dedicated Member
  • 16 replies
  • October 9, 2024

Haha, it’s true, the way Tina worded that first sentence could be interpreted in different ways. Can you clarify, Tina? Judging from the example she gives, it sounds like Experiments works the way you want/expect though? It sounds like whether people got refunds isn’t included, but refunded money isn’t included in the LTV. 


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