Customers are cancelling. Help!
📬 From the mailbag 📬
Answering questions from curious readers
Customers are cancelling in high numbers, and I’m having trouble figuring out why. How do I get them to tell me what’s wrong? How do I talk to them at all? How do I figure out the problem?
To identify the reasons why customers are canceling at high rates, it’s essential to engage with those who are leaving and dissect the gap between the expectations set and the experiences delivered. First, recognize that high cancellation rates act as both financial barriers and indicators of a lack of Product/Market Fit. This means that cancellations aren’t just a number problem; they’re a clear sign that the product isn’t meeting users’ needs.
To uncover why this is happening, start with interviewing customers who cancel. However, obtaining precise feedback can be challenging as former customers may give generic responses or may not want to engage further. When you do find someone open to dialogue, probe deeply to understand their unmet expectations, as generic responses like “too expensive” often mask more specific dissatisfaction with the product’s delivery or fit into their workflows.
Another angle is to look for indicators of customer dissatisfaction before they cancel. Monitor usage patterns that correlate with high churn and low retention - these are early warning signs that you can address proactively by intervening or reaching out for insights while they’re still engaged.
Engagement with customers isn’t just about those who cancel; ensure you’re continuously iterating your understanding of customer personas to align your product more closely with the needs and expectations of your ideal users, like “Carol,” as described in Ideal Customer Persona (ICP). Distinguishing who provides the most valuable feedback among your users helps refine your marketing and product efforts towards retaining similar types of customers and alleviating churn.
Ultimately, while cancellations might not directly involve intricate coding or product polish issues, they signify deeper problems with the product’s value communication or delivery. Addressing these effectively requires stepping outside the comfort of development, challenging assumptions about customer alignment, and actively seeking user experiences to build a product that truly fits their needs. More on these methods can be found in detailed discussions on seeking feedback and understanding customer perspectives.
https://longform.asmartbear.com/mailbag/customers-are-cancelling/
© 2007-2025 Jason Cohen
@asmartbear
