What to do when your customer wants to cancel? – WAU
In the last few years, the subscription service model has been growing more and more and you are certainly a customer of one or more of them. Internet, pay TV, Netflix, software to optimize your work, various tools: these are some examples of subscriptions that you make and pay for every month. But there is a detail […]
In the last few years, the subscription service model has been growing more and more and you are certainly a customer of one or more of them.
Internet, pay TV, Netflix, software to optimize your work, various tools: these are some examples of subscriptions that you make and pay for every month.
But there is a detail that concerns teams that work with this service model, especially when we talk about SaaS (software as a service): cancellation.
Also called churn, cancellation is extremely detrimental to a company’s goals and monthly recurring revenue (MRR).
To check if your churn is high is simple. Simply divide the number of customers who canceled by the total number of customers in your base.
If you work with subscription services and suffer from cancellation fees, today we bring you 3 tips to get around the situation when your customer wants to cancel. Check out!
1. Understand why
Company that hears from the customer the desire for a cancellation and is not concerned with understanding the reason is making a big mistake and that can generate a snowball of cancellations. If you do not evaluate what happened for your customer to wish to cancel, consequently you will not be able to improve and prevent new cancellations from happening.
So, in a cancellation request the first point is to question the reasons that led to this, precisely to be able to outline strategies to resolve the situation. You don’t have to ask your client questions, but having a natural conversation is the best way to get those answers.
Don’t forget to write this down in your CRM. Having the right tool to follow the entire customer history in your company is essential!
2. Make an offer
It’s not all about price, but when it is, see the possibility of making an offer to retain that customer you want to cancel. You must do your utmost in this step so that the customer does not go through with the cancellation order.
This means that you must offer free periods, discounts and special conditions whenever this is within your range of possibilities. Of course, staying at a loss is not an option.
It is also important to remember that even if the customer opted out, you should not give up. Keep in touch and show a real interest in bringing him back without being annoying, focusing on your relationship with this client. If it is already well structured, this mission is much simpler.
3. Show the value of your product
Here at Moskit we usually hit the key a lot that there is a huge difference between price and value. And you need to show the value of your service, but it must be done before to reach the point of cancellation, because it reaches the point of dissatisfaction with the service, it becomes much more difficult.
This can be done by starting with the marketing work that must know how to educate and inform the customer in all stages of the purchase journey. Investing in a content production strategy to educate your client and keep them well nourished is a great option for that.
In addition to being able to bring more leads interested in your service, they arrive more qualified, are nourished with materials by the Sales Funnel phases and at the time of purchase they already see the value of your service, far beyond the price which significantly reduces the fees of churn.
How is your Customer Success structure – Customer Success? If you work with subscriptions, it is essential to have someone responsible for ensuring that the client will get the most out of what has been proactively hired by the company.
The client’s success works actively to avoid problems and when they are unavoidable, to be able to correct them as quickly and reduce the damage caused. This makes your customer trust you and think twice before canceling your service just because they know the service you receive.
If you already go through these situations daily and have other tips for those who need to reduce cancellations, tell us!
* Content produced by Isadora Lopes, Inbound Marketing Analyst at Moskit CRM