What is a Cancellation Flow in SaaS?

Cancellation flow is an essential part of every SaaS business and is important for improving customer experience.

Cancellation flow is also an important part of the marketing effort in SaaS. These types of flows are designed to help you keep customers and support your marketing roster. This is not just a simple survey because it also includes offering alternatives during the offboarding process and collecting and using the data to improve customer experience in the long run.

The cancellation flow should not only provide answers but also take advantage of the data collected during the conversation.

The first step in building a cancellation flow is to identify the different types of cancellations. There are four main types:

Regular cancellation: A regular cancellation happens when a customer decides to stop using your product and no longer wants to pay for it. This can happen for many reasons, including dissatisfaction with the service, missing features, or new competitors in the market.

Emergency cancellation: An emergency cancellation happens when a customer has a sudden problem with your product and can’t use it any longer. This often happens because of a technical issue, such as losing access to the phone number or email address used by the user.

Legal cancellation: A legal cancellation happens when someone else cancels your product for you (for example, an employer canceling all employees’ accounts). This can also happen when you’re forced to cancel a user account that violates the terms and conditions. This could be because they’re violating your policies or because they’ve gone out of business.

Voluntary cancellation: A voluntary cancellation happens when a customer wants to stop using your product but doesn’t have any other reason for doing so. This is often because they no longer need it but might come back later if they do.

Cancellation flow


Reasons why you need to implement a Cancellation Flow

  • It Helps retain existing customers

 If your product or service has a built-in cancellation flow, it will not only increase customer retention but also reduce churn by more than half. Cancellation flows are simply defined as a customer-facing process that gives customers an opportunity to cancel their transaction before they complete the process.

  • You will be able to re-engage churned users

Customers who cancel their subscriptions does not mean that they will not return in the future.

You may also take a more proactive approach by re-engaging and convincing them to re-subscribe based on the reasons they left your company.

This personalized approach allows you to directly address past customers’ concerns about your SaaS and demonstrate that you respect their feedback enough to include it in your offerings.

  • Cancellation Flows collect valuable feedback

Whether you believe it or not, a customer quitting their SaaS subscription is not the worst thing that could happen.

It’s better to lose a client because it’s just not working out than to force one who doesn’t want to utilize your services in the first place.

However, before they unsubscribe, use churn surveys to ask them questions about their decision.

You may then utilize the data from customer feedback to enhance your product and service, preventing future customers from opting out.

For example, you can gain insights about half-baked or missing features or functionalities in your service. From here, you can figure out how to improve existing features or add new ones to the product.


If you offer subscriptions through software as a service, it will be in your interest to have a cancellation flow. This flow, which happens after a cancellation request is made by the user, creates a last chance to retain them. Having a process in place can be the difference between retaining and losing that valuable customer.

Knowing how customers feel about your product is crucial to future success. By looking at user behavior and learning more about why they are choosing either to stick with or cancel your service, you can learn a lot about what it takes to retain users and prevent costly churn…

… Besides having a great cancellation flow, you will also need to have an accurate data revenue platform to track and analyze your business to prevent churn.

Radix is a real-time data revenue platform for payment gateways such as PayPal and Stripe. It is totally free and very user-friendly.

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Luis Cordero Schiffmann
Luis Cordero Schiffmann
Digital Marketing Strategist & Web3 Passionate MBA with expertise in Science, Technology, and Innovation. I'm a big fan of the crypto revolution, the internet and business.