Basecamp – a case study in integrity

Basecamp: a case study in integrity

CS Lewis said Integrity is doing the right thing, even when no one is watching. But what’s the cost of doing the right thing?

I tried out the project management software Basecamp sometime ago and decided it wasn’t what I needed at the time. However, I forgot to cancel the subscription before the free trial ended and got charged for another month. I emailed the company explaining that I had exceeded the free trial by 1 day and that I didn’t want the product and asked for a refund.

This was my mistake and the company was within their rights to charge me for the months subscription. Basecamp immediately refunded the full amount I paid without any questions and I was extremely impressed by their great customer service. Lots of companies wouldn’t have, but they did the right thing and I think this fundamentally boils down to the values within the business. So what are the cost implications of doing the right thing in this situation.

Cost of doing the right thing: $20 loss of revenue

That was the immediate cost but were there any benefits of doing the right thing?

ROI of doing the right thing: >$240 + $240 in word of mouth marketing from a friend that have signed up.

Benefit of doing the right thing $480

It might not be a 24x return everytime but like Basecamp I’m pretty sure that doing the right thing will help both our customers and ourselves in the long run.