The Policy Dilemma: Balancing Generous Customer Policies and Business Profitability

The podcast episode explores the challenges faced by merchants in balancing generous customer policies, such as refund and return policies, with maintaining profitability. The podcast highlights that while offering delightful customer experiences and generous policies is important for building loyalty, merchants also face significant financial impact and abuse from certain customers. The survey conducted by Riskified on 300 global merchants reveals that around 90% of respondents acknowledge the importance of offering generous policies, but also express concerns about the cost and abuse associated with these policies. The episode emphasizes the need for retail leaders to carefully manage customer policies and find the right balance that fosters loyalty without compromising profitability.