Reduce Voluntary Churn and Increase CLV with Personalized Cancellation Experiences

Dynamic incentives offered through our Cancellation Flow feature encourage customers to keep (and grow) their subscriptions

For SaaS businesses, high churn rates can severely impact revenue and growth. Every subscription cancellation represents not just a lost customer, but a missed opportunity to better understand and address their concerns (concerns that could be widespread or shared by other customers at the risk of churning).

While most early-stage SaaS companies see their monthly churn rates fluctuate between 3% and 5%, that can quickly turn into 20% or more over the course of a year. The pressure to minimize churn increases for more mature SaaS companies, especially in enterprise B2B SaaS where companies face more substantial losses when individual customers churn due to larger average order values (AOVs). 

Despite these concerns, many companies lack an effective strategy to retain customers at critical junctures, leading to high churn rates and significant revenue lost through subscription cancellations.

Our Solution: A Smarter Cancellation Flow

To combat voluntary customer churn, we’ve launched a new Cancellation Flow that engages customers when they attempt to deactivate an auto-renewing subscription. By collecting feedback and creating personalized incentives designed to preserve a customer’s business, Cleverbridge clients can transform exit intent into a valuable retention and customer growth opportunity.

How Cancellation Flows Work

1. Exit Survey: When a customer attempts to deactivate automatic renewals, they are prompted to fill out a quick survey indicating their reasons for cancelling their subscription (e.g., too expensive, too complicated/technical issues, not what they need, etc.). 

   

2. Personalized Retention Offers: Based on this feedback, the customer is presented with personalized retention offers, including discounts, plan adjustments, or other modifications to their subscription that better suit their business needs.  

   

3. Problem Resolution: The customer is prompted to apply the incentive to their subscription and successfully process a renewal. If a customer cites technical issues or dissatisfaction with service levels, they are directed to contact a support representative to resolve the problem.

   

The survey is entirely optional, and customers can skip the Cancellation Flow at any point by clicking “Disable automatic renewal.” This approach allows businesses to strategically prevent voluntary churn while ensuring a smooth and compliant experience for all customers.

How Prevention Equals Retention

Let’s say a customer cites cost as their main reason for deactivating. The new Cancellation Flow feature can offer a promotional discount, applicable at renewal. What if they felt the product wasn’t a right fit? The Change Plan option will allow them to modify their subscription to match their requirements. 

Through this host of incentives, our initial reports have shown promising results — early adopters experienced an 8% to 40% reduction in voluntary churn when utilizing Cancellation Flows. These figures demonstrate the impact of engaging customers at a critical moment and offering solutions that meet their needs in real time. 

Retain More Customers — Starting Today

Don't let valuable customers slip away for the wrong reasons. Contact our Client Experience team to participate in the private preview of Cancellation Flows and find out how you can tailor the feature to prevent voluntary churn and boost customer lifetime value.

Want to read more about Cancellation Flows? Click here.