How To Build a SaaS Cancellation System

About this video

Dan Martell teaches how to build a SaaS cancellation page or system to reduce churn. He says churn at his company Flowtown was 20% monthly and that implementing recommended strategies got it down to 8%, and that he has since coached hundreds of SaaS founders on reducing churn. The framework has three principles. First, remind the loss: show cancelling users exactly what they will lose — in his example, 15 landing pages, 400,000 contacts, and the data, connections and assets they have already configured — prominently on the cancellation page so they think twice. Second, align alternatives: ask why they are cancelling, then match the alternative to the reason — a pause plan that preserves their data for a lower cost if they will not need the tool for a quarter, a downsell, an upsell or add-on if a feature is missing, or a one-on-one customer-success conversation, training or live chat if the product is not working for them. Third, win the why: if they cancel anyway, capture their stated reason and review those verbatim reasons in the weekly product meeting, because they reveal the gap between the promise made and what the product delivered. He offers a free Cancellation Page Template with wireframes and copy.

Key takeaways

• Remind the loss: put the specific assets, data and setup a user will lose front and centre on the cancellation page so they pause and reconsider.
• Align alternatives to the stated cancellation reason — pause plans for temporary non-use, downsells or upsells for price or missing features, training or chat for usability problems.
• Win the why: capture the customer’s own words for why they cancelled even when you cannot save them.
• Review cancellation reasons in the weekly product meeting; they expose the gap between the promise sold and what the product delivered.
• Martell claims this approach helped cut Flowtown’s monthly churn from 20% to 8%.

Episode details: published February 10, 2020 · 6:52 long. Summary written by Self Growth Videos from the episode itself. Business results and any income figures mentioned are Dan Martell’s own claims, shared for education — they are not typical or guaranteed.

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