Your LTV = Forecasting total revenue
from your transactions so far
Revenue = The sum of your past
transactions
Refund? = LTV - Revenue - Refund Cost > 0
This is a much simpler, much more logical model. It appears everywhere, like with credit card disputes or when you get service discounts to not leave. Because when you don't get the refund for a $7,000 item, the assumption is you will "die" - quit using the service, stop buying, whatever - and your LTV - revenue is now zero.What is frustrating to people is: it doesn't matter what happened to the package. You feel like you're this good person pursuing this great justice, but the simple facts are it doesn't matter what actually occurred. This is coming from someone who had two $3,500 computer deliveries stolen, probably because they had RTX 3080 written on them, but like, Amazon didn't care, it just refunded me. I didn't have to provide evidence or explain anything. Because my LTV was really high. Same with getting stuff refunded on my credit card. They simply did not care, and it was thousands of dollars of stuff where, obviously I was in the wrong, you can't just refund like airfare and such, but I asked for it and I got it because LTV.
Is this just? Like how else could it work? They investigate everything, spending more money than the cost of the refund? They would just not provide refunds, as was the case historically in e-commerce! And it's not Amazon, it's everyone. Indeed, the real innovation here isn't the strategy, it's that LTV forecasting has gotten really accurate. Otherwise I feel like these threads devolve into, people who don't know anything complain about stuff they keep using, and nobody critically looks into what's really going on.
There's an emotional desire, ironically, for this slow, legalistic, argumentative, plaintiff versus defense world. You know, when it suits you. The algorithmic approach, as soon as you open that Pandora's box, well of course it optimizes all that crap away - the LTV model of "justice" here is, in my opinion, a lot lot better.
It's just so inscrutable to a lay person, such a baffling reorganization of at least two decades of conditioning, I can see how the reaction is, "Oh my god, who is this blowhard, downvote." All I'm trying to do is share the facts of how remedies really work when you interact with giant, growing, successful companies.