It's Too Late For Retention? Dead Wrong.
Back in 2019 we were knee deep in customer journey data. One event in the customer journey kept standing out to us an opportunity to move the needle, which was the actual end of the customer journey. When a customer cancels/terminates. Some of the early data looked as though the cancel event was a potential opportunity to move the needle in a meaningful way.
Typically, this event is an afterthought, which makes sense as most of us hate conflict and "breakups" are full of conflict.
Over the year and a half that RetentionEngine has been alive, we have grown to the point of handling over 10,000 cancel/termination events for subscription-based businesses per day and the data is very clear... ignore the cancellation experience at your own peril.
While are clear values to be gained from a good churn/cancellation process, like the opportunity to learn what is going wrong and for whom it's going wrong. There are also less clear value propositions to putting more focus on the customer experience during a cancellation.
The first objection we heard with RetentionEngine was, "when a customer decides to cancel it's too late to do anything about it."
We believed this to be wrong and now we can clearly see that this sentiment is dead wrong.
This graph is from B2C subscriptions data collected so far in 2021. We have identified customers who had clicked to cancel previously but were saved by our personalized treatments application.
The data is quite clear, if you can retain a customer who decides to cancel, their lifetime value increases by nearly 33%!!!
Combine this with the value derived from understanding where your product fails, who it fails for, then the cancellation/offboarding experience for customers is one of the most valuable experiences for your business.
If your cancellation/offboarding experience is static or you simply let customers walk without an effort at solving their problems you are losing approximately 1/3 of their potential lifetime value.