It can be really frustrating when you are unsure how to win back lost customers right after you lose them. Whether they were a one-time buyer or someone who regularly purchased from your business, it always feels like a personal setback. But don’t despair! There’s always a chance to win them back.
That’s where a win back strategy comes in. A win back strategy is simply a plan to regain lost customers and turn them into loyal, long-term fans of your business.
Ensure your win back strategy is tailored specifically to your business and your customers. What works for one company might not work for another, so finding what will resonate with your audience is essential.
There are lots of different ways to winning back lost customers, but one way to do so is by implementing a subscription cancellation flow.
How to Win Back Lost Customers?
SaaS business struggle with ways of reducing customer churn and winning back customers. Churn is something that can hurt business in the longer term. Everyone is struggling right now. It’s no secret that customer acquisition is hard. It’s even harder when you’re starting from scratch. But what do you do when you’ve lost your customers? How do you win them back?
There are a few things you can do to try and win your customers back.
1. Utilize Feedback from Subscription Cancellation flow
We know that a subscription cancellation flow helps retain existing customers but it also helps in winning back lost customers.
What is Subscription Cancellation Flow?
A subscription cancel flow is a process users must be part of it when they are about to call off using your products and services.
Its also known as a churn survey including off-boarding process and collecting important information that could be used in the longer run to improve products and service quality.
Why Should you Implement a Subscription Cancellation Flow?
A subscription cancellation flow is critical for SaaS business. So, being associated with SaaS business, you must know how to win back lost customers.
A Subscription Cancellation Flow Helps Retain Existing Customers
A subscription cancellation flow’s main objective is to minimize the ratio of canceling customers as much as possible. It’s also done in a way that users have complete control over their decision.
You don’t have the liberty to enforce users’ stay and it can damage the image of your business as you are cutting short their independence in choosing what’s best for them.
It can be dangerous, as you may piss off your customers, even the loyal ones.
So what’s the best way to make them stay happily?
You can remind them of the best incentives for your products and the value they can offer to your user’s lives.
A Subscription Cancellation Flow Helps Collect Valuable Feedback
Sometimes losing a customer is not the worst thing that could happen to a SaaS business. The much worse thing is forcing a customer who does not want to use your products anymore. But the best thing you can do is to take a churn survey before they cancel their subscription.
This kind of customer feedback can greatly help you in improving the value of your products. and there are likely fewer chances of this survey being fake, as the leaving customer may be pissed off but would genuinely like to tell what thing made them cancel their subscription.
A Subscription Cancellation Flows Leave the Door Open to Re-Engage Churned Users
Just because users canceled their subscriptions doesn’t imply they won’t like to return in the future.
A subscription cancellation flow allows you to offer a proper send-off and value their time with you as your users.
Once you take a more proactive approach to the feedback they left, the quality of your products will also improve—is the genuine reason they would like to return.
Key Takeaways to Maintain a Sustainable Subscription Cancellation Flow
- Build a transparent profile of your most at-risk users, and use microscopic surveys to collect data for your next steps.
- Make a b2b customer journey map to distinguish segment risk and specify churn triggers.
- Use smart UX to educate users, drive feature adoption and deliver incentives for cancellation deflection.
- Calculate the effects and evaluate the cost to make all of those changes to see if your solution is sustainable.
- push low-code / no-code solutions to reduce the burden on engineering.
2. Enhance what they came for
Get to know the reason why your customer subscribed to your product in the first place. You can get this data from Churnfree customer retention feedback. Use this data to send them similar and enhanced offers regarding that. You can send emails and use content to remind them why they chose the product in the first place over your competitors.
3. Understand why they left - and Improve it.
Getting to know the customer’s churn cause is one thing but making it better is how you bring them back. As Peter Drucker says :“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself”. You can analyze their reason to churn via subscription cancellation flow survey. Use this data to bring improvements to it. Later spread the word via content and videos.
4. Segmentation
The 3rd point can only be worked on, if you group the churned customers based on their reasons to leave. Segment them by price, features, customer service.
Analyze the percentage of churned customers in these groups. You can use Churnfree analytics insights dashboard to gather real-time insights and also grouped insights of customers reasons of leaving. This will help in your winback strategy.
5. Send a Personal Email
When you’re trying to win back a customer, a personal touch can make all the difference. Send them a short, friendly email letting them know you’re thinking about them and asking how they’re doing. This shows that you care about them as a person, not just as a customer. This tactic is usually helpful when the customer leaves with unhappy customer service. A personal email will make them feed valued and they might subscribe to your product.
6. Offer a Discount
Everyone loves a good deal, so offer your customers a discount on their next purchase. They would like to resubscribe from your products if they left on price issues in the first place. It also shows that you’re willing to work with them to keep them as a customer.
7. Give Them a Freebie
A little token of incentive comes in the form of coupons, free trials, or offering some features free of cost—is always a good way to keep your customer along.
It would be ideal if such freebie deals are offered quite often instead of after a long time.
8. Send a Handwritten Note
It’s a unique way to make your customers feel special. In today’s digital world, a handwritten note stands out. Sending your customers a handwritten note shows that you took the time to sit down and write it out just for them. It’s a small gesture that can make a big impression.
9. Call Them
Sometimes, the best way to win back a customer is to just pick up the phone and give them a call. In this busy world, taking out time for 101 call sessions with customers is a supreme gesture. This shows that you’re interested in speaking with them and hearing what they have to say. It also allows you to answer any questions they may have about your product or service.
It’s the best way to offer solutions to their problems instantly and your customers would feel more valued. Giving a direct call to your customers may be a hectic job but it’s worth a while to win back their trust for a longer period.
10. Invite Them to an Event
Conducting an event means a new feature launch or offering solutions to all common and complex problems. Don’t forget to invite your customers, even the ones who canceled their subscriptions. This is a great way to show them that you value them and want them to be involved in what you’re doing. Plus, it’s a fun way for them to learn more about what you do and how it can benefit them.
11. Give Them Exclusive Access
Your customers always want to feel special and exclusive and one of your jobs is to make them feel likewise. Make your customers feel special by giving them exclusive access to your product or service. This could be early access to new features, VIP customer support, or anything else that would make them feel valued.
12. Ask for their Feedback
Asking for feedback shows that you care about your customers’ opinions and want to make sure you’re meeting their needs. It’s also a great way to get ideas for how to improve your product or service. Plus, who doesn’t love giving their opinion?
13. Make it Right
The first thing you need to do is reach out and apologize. If you’ve made a mistake, own up to it. A sincere apology can go a long way.
If you’ve done something to upset your customers, make it right. This could mean anything from fixing the problem to giving them a refund. Whatever it takes, make sure your customers know that you’re committed to making things right.
14. Stay in Touch
Once you’ve won your customers back, don’t let them slip away again. Keep in touch with them and let them know that you appreciate their business. A little bit of communication can go a long way.
Even if your customers are happy with your product or service, it’s important to stay in touch with them. Send them periodic emails updating them on what’s new with your company or offering them exclusive deals. This will keep you at top of mind so that when they’re ready to make a purchase, they’ll think of you first.
15. Say Thank You
Last but not least, always remember to say thank you! Thank your customers for their business and let them know how much you appreciate them. A little appreciation can go a long way in achieving customer loyalty.
16. Create a Loyalty Program
Creating a loyalty program will help in winning back lost customers the most. You need to offer incentives for reusing your service and give referral bonuses for bringing in new and lost customers.
What are the Impacts of Subscription Cancellation on your Business?
It’s no secret that subscription cancellations can hurt businesses. Not only does it mean losing out on revenue, but it also means losing out on customers. But what are the effects of subscription cancellations? Let’s take a look.
1. Immediate loss of revenue:
This one is pretty obvious. When someone cancels their subscription, you immediately lose out on the income that they were providing. Depending on your pricing model, this could significantly blow your business.
2. Long-Term Loss of Revenue:
In addition to the immediate loss of revenue, cancellations can also lead to long-term losses. This is because canceled subscribers are less likely to come back in the future, even if offered a discount or other incentive. Once someone cancels, they’re usually gone for good.
3. Decreased Customer Lifetime Value:
Cancelled subscribers also decrease the overall lifetime value of your customers. This is because they’re no longer paying customers so they won’t generate as much revenue over time. Additionally, it costs more to acquire new customers than to keep existing ones, so losing even a few customers can greatly impact your bottom line.
4. Increased Churn Rate:
A high churn rate often indicates problems with your product or service. If people are canceling their subscriptions at an alarming rate, it’s a sign that something needs to be fixed urgently. Otherwise, you’ll continue to bleed customers and lose money in the long run.
5. Damage to Your Brand:
Subscription cancellations can damage your brand if you don’t handle them properly. If customers feel like they’re being treated poorly when they cancel, or if they see others having negative experiences with your cancellation process, it will reflect poorly on your company. On the other hand, if you handle cancellations smoothly and efficiently, it will show that you’re professional and dedicated to providing excellent customer service.
6. Negative Word-of-Mouth:
Finally, subscription cancellations can also lead to negative word-of-mouth. When someone cancels their subscription, they may tell others about their experience and why they decided to cancel. And if you have a lot of negative word-of-mouth, that could damage your reputation!
New times are tougher, and SaaS businesses need to adapt accordingly. Being proactive and working on a customer win back strategy to enhance the value of the product will also support avoiding a churn nightmare.
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