Some subscription cancellations can be avoided relatively easily - let’s have a look at 3 of such reasons that you can address.
1. Product bugs
One of the most critical reasons why customers might leave your business is due to issues related to the product itself, which can be highly detrimental. When an app is poorly engineered or released hastily, it can be frustrating to use and may even have negative consequences for users. For instance, in the case of an insurance app that contained bugs, drivers had their insurance canceled or lost their no-claims discount, which can be highly problematic.
If your product is described as inferior or weak, it can be devastating for your business. In this situation, it's essential to conduct a thorough review of your product's functionality and features. You may need to make improvements to the product or launch a new version to address any bugs or other issues. Once these changes have been made, you can try to win back customers who have left through targeted campaigns.
2. No subscription levels (downgrades, upgrades)
To achieve success, it is essential to prioritize the needs of your customers. This may involve making compromises in terms of higher average contract values (ACVs) to provide customers with an experience that is tailored to their specific requirements and budget while maintaining their customer lifetime value (LTV).
The needs of your customers can vary, and if you do not offer a choice to downgrade, upgrade, or even pause a service, some will make the decision to terminate completely.
Allowing your customers to scale up or down their usage of your product or service based on their changing needs and expectations is not only crucial for customer retention but also demonstrates empathy and a human-centered approach.
3. Product not growing with customer growth
Remember, your product is never ready. There will always be new features, changes in the market, changes in the expectations of your clients.
If you keep your product static, it is bound to experience churn from your existing customers, who have outgrown your product and your offering.