How QR Code Reader Reduced Refund Rate by 81%

Introduction

QR Code Reader, an app operating in a highly competitive category, became one of RefundKeeper's first pilot projects in August, partnering with us to address a significant challenge: rising refund rates. The main goal was to lower refund rates to make more profit per user. This would let the marketing team bid higher on ads and use the budget more effectively.

Challenge

Before partnering with RefundKeeper, QR Code Reader faced an initial refund rate of 4.4%. This negatively impacted profitability and constrained marketing efforts, as high refund rates reduced average revenue per user (ARPU). To sustain their 10% month-over-month revenue growth, the team needed a solution to tackle these refunds while maintaining the integrity of their processes.

Solution

RefundKeeper collaborated with QR Code Reader to address refund rates by:

1. Seamless Integration

   Integration was completed within a few minutes, without requiring any app updates or backend development. This allowed the app to be connected quickly and refund prevention to start immediately, minimizing any operational delays.

2. Providing Comprehensive Data

   RefundKeeper ensured that all data sent to Apple was accurate, transparent, and aligned with Apple's requirements for decision-making, showcasing the impact and ability of working with refunds effectively.

3. Focused Implementation

   The team concentrated on applying RefundKeeper's capabilities directly, without the need for continuous optimization or testing cycles.

Results

Over three months, QR Code Reader achieved a significant reduction in refund rates:

• August: 3.3% refund rate
• September: 1.1% refund rate
• October: 1.9% refund rate
• November: 0.8% refund rate

This marks an 81% reduction in refund rates, which had a transformative effect on the app's performance and profitability.

Impact

The decreased refund rate unlocked several benefits for QR Code Reader:

1. Higher Profitability

   Reduced refunds improved ARPU, resulting in more revenue and profit from each user.

2. Expanded Marketing Efforts

   With better unit economics, the app's marketing team was able to:

   • Increase ad bids on display platforms like TikTok and Facebook.
   • Allocate a larger marketing budget, scaling campaigns and acquiring more users.

3. Sustainable Revenue Growth

   The app maintained its 10% month-over-month revenue growth trajectory, demonstrating the long-term impact of reducing refunds on overall business success.

Conclusion

By reducing refund rates by 81%, RefundKeeper proved its ability to impact QR Code Reader's business performance. This partnership highlights how tackling refunds effectively can improve profitability, unlock new marketing opportunities, and sustain revenue growth - even in a highly competitive app category.