Cancellation Email (How To Write For SaaS)

In this short guide, we will break down how to write a cancellation email for SaaS.

Retention opportunities
November 13, 2021

There’s nothing worse than bidding farewell to customers you thought would be around for the long hall. Although, it’s important to remember they are not necessarily gone for good. With the right cancellation email strategy, there’s still an opportunity for you to win them back. It all comes down to crafting the perfect cancellation email that gets to the root cause of why they’re leaving.

There are many reasons why SaaS customers may choose to cancel their subscriptions. If the SaaS solution wasn’t a good fit for their needs, this is a critical insight that suggests your sales and marketing teams should qualify leads more thoroughly. As Bill Gates once said, “Your most unhappy customers are your greatest source of learning.”

While cancellations are inevitable in the SaaS world, these are important events that you can potentially use to your advantage. A cancellation email could be your last opportunity to prevent churn and leave on a positive note. With the SaaS business model depending on low customer churn, it’s dangerous to ignore or disregard pivotal opportunities for retention.

Many SaaS customers don’t want to cancel. They just haven’t been nurtured enough to realize the potential ROI of the SaaS solution. If the customers do not know how to unlock value from their subscription, it becomes hard for them to justify continuing to make payments. An email could be a last-minute opportunity for you to help users extract value from the subscription.

In this short guide, we will break down how to write a cancellation email for SaaS. Without wasting any time, let’s dive straight in.

How To Write A Cancellation Email

Customer Cancellation Email Response (Top Tips)

1. Go further than a “sorry” or “goodbye”

As a general rule of thumb, subscription cancellation emails should include:

  • A brief “thank you” to the customer for doing business with you.
  • Confirmation that their subscription has been canceled.
  • Reassurance that the door is always open for future business.
  • Request feedback to understand why they decided to cancel.

These are the four basic components of an effective cancellation email. You should end the email by asking for feedback. While learning the reasons why your customers cancel is painful, it’s also undeniably valuable. Over time, systematically collecting user feedback will enable you to build a clear picture of where your SaaS solution falls short and what can be improved.

2. Investigate why customers cancel their subscriptions

Before writing a subscription cancellation email, you should first investigate what has caused this event to happen. You could start by measuring user activation and assessing how much value they were unlocking from the solution. You could also see whether there have been any recent user support requests or helpdesk queries that indicate frustration with the solution.

After taking some time to understand why a customer may have canceled their subscription, you need to ask them directly in an email. There’s no reason to be shy about asking customers for their opinions. With the support of the right tools, it’s possible for you to collect user feedback before contacting the customer, potentially helping to inform the email’s content.

Before you initiate an email conversation, Raaft makes it easy for customers to tell you why they are leaving. Using our intuitive solution, you can encourage customers to choose from a range of preselected motivators to identify the primary reason for cancelation. Without the need for extensive input, these quantitative insights will help you to understand their motivations.

3. Use a personal account to send your emails

Rather than sending your cancellation emails from a generic business email account, using your personal business email account separates the messages from a typical email blast. Ultimately, you should aim to be as authentic as possible to ensure you receive a reply. If your message feels formulaic, this is unlikely to generate the type of response that includes actionable insights.

4. Keep your subject lines simple

When it comes to communicating with customers via email, subject lines are always a barrier to entry. You can’t afford to fail at the first hurdle. To ensure you get a good open rate, keep your subject lines simple. The classic “We’re sorry to see you go!” subject line that is often used by e-commerce companies may come across as a little cynical to a SaaS customer.

At the same time, if your subject lines are too vague, this may confuse customers. Here are a few simple subject lines that can be used for your cancellation emails:

  • “Cancellation Request Confirmation”
  • “Confirm Your Cancellation Request”
  • “Are You Ready To Cancel?”

Cancellation Email Template

Here’s an effective cancellation email template for your consideration:

Hi [Customer Name],

I’d just like to thank you for being a valued member of the [SaaS Company Name] community.

We received your request to cancel the subscription. Your account will still be active until [Date]. In the meantime, you can still access [Specific Feature].

I’m keen to learn more about your decision to cancel your subscription - so we can further tailor our solution to the needs of users (including you) in the future.

You can share feedback using the following link:

[Link To Feedback Survey/Questionaire]

Thank you again.

Kind regards,

[Insert Name]

A cancellation email doesn’t have to make or break your ability to collect actionable feedback. You can use a tool like Raaft to save customers with retention flows and collect cancellation insights. Raaft will ensure customers are asked to identify a primary reason for canceling through qualitative input, enabling you to learn from the feedback and build a better product.

Are you ready to unlock retention opportunities and reduce churn? Try Raaft for free today!

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