Buffer Offered Refunds to Inactive Users

Buffer's inactive user refund strategy created deeper customer trust and loyalty by prioritizing integrity over short-term revenue.

When Buffer noticed that about 2% of their paying users were completely inactive and hadn't used their product for many months, they made an unusual decision. Instead of quietly continuing to collect subscription fees from these disengaged customers, they proactively reached out with an email acknowledging the inactivity and offering to refund their money.

On the surface, this approach seems counterintuitive from a business perspective - deliberately identifying revenue you could keep and offering to return it. However, Buffer recognized that this short-term financial hit would build something more valuable: trust and integrity in their customer relationships.

The results were surprising. While the email gave customers a clear path to cancel and get refunded, many recipients had the opposite reaction. The transparency and honesty of the message actually deepened their connection to Buffer. As the product leader explained, "You might remind people to resign or close your contract with a certain product, but that even creates a deeper connection that might drive you to not cancel at all. Like, 'Okay, you're inviting me to cancel, but thanks so much for your honesty, so I'm gonna remain.'"

This approach exemplifies what Buffer understood about emotional connection in B2B products - that trust and integrity are powerful differentiators even in business software. By prioritizing the customer relationship over short-term revenue, they built goodwill that translated into stronger retention and word-of-mouth growth over time.

The tactic demonstrates how ethical business practices can become growth mechanisms when they align with customer values. For Buffer, this wasn't just about doing the right thing - it was a strategic decision to build the kind of brand that customers feel good about supporting and recommending to others.