Cancellations are inevitable in SaaS businesses. Even the most loyal, long-term customers who you thought would stick around forever may cancel their subscription out of the blue. Maybe they didn’t achieve the results they expected because they haven’t been nurtured enough to realize the full ROI of your product. They may have found a better solution (with a broader range of features and more affordable pricing), or they simply no longer need your product or service. Whatever the case, cancellations don’t always mean the end of your relationship with a customer.
How you manage cancellations makes a difference, and it starts with your cancellation emails – the type of transactional emails triggered when a user cancels their paid subscription. Much like win-back emails, cancellation emails play an essential role in customer retention. There is often an opportunity to re-engage those customers who have lapsed and win them back. That is why your cancellation emails should go beyond simply saying ‘goodbye’ – they should be designed to leave a positive impression and reduce churn. Below are some key tips for crafting cancellation emails, including ready-made cancellation email templates that you can customize and use.
Cancellation emails have proven to work better if they are concise and straightforward. There are only four major points that you should include in your email:
Learning why your customers cancel and where you’ve failed them can be painful, but it’s still unquestionably valuable for your business. Tracking the reasons behind cancellations always provides a huge opportunity to leverage customer feedback, improve your offering for future customers and reduce your churn rate.
While cancellation messages should typically be brief, it doesn’t mean they have to be overly formal and cold. Emphasizing that there are no hard feelings by including something like “We’d love you to stick around, but we understand that cancellations happen” can make your email more personalized and human even though it’s an automated message.
Design your own cancellation templates
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How your brand responds to customers who canceled their subscription, premium account, or membership has a significant impact on whether or not they eventually churn. Well-crafted cancelation messages can be used to win back disengaged customers, mend customer relationships that might otherwise be lost, improve retention, and minimize the number of churned customers.
Asking customers why they canceled their subscription in the first place can give you a deeper understanding of their needs and expectations and, ultimately, valuable insights that can help you improve your product, strategy, and brand. If you find out most customers who churn require particular features your product lacks, it might make sense to reconsider your functionality and make improvements.
Following up with customers who canceled personally adds a more human touch to your message and builds more trust. While it’s not always possible to send personalized messages every time, it may be reasonable with your most loyal and high-spending customers. Instead of sending a generic, one-size-fits-all cancelation message, consider following up with your long-term, high-value clients personally – it might increase your chances of re-engaging them and winning back their loyalty.
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