The Right Way to Handle SaaS Cancellations

Recently, we were tasked with implementing a cancellation flow for one of our clients’ SaaS platforms. To deliver the best experience, we researched various SaaS cancellation processes and found significant variation in approaches. Some models were frustrating and counterproductive, while others offered respectful, customer-centered experiences that even provided opportunities to retain users. Here’s what we learned, including examples of what to avoid and an ideal model to consider.

Models to Avoid: The Worst Examples We Found

1. Phone-Only Cancellation (The Barrier Method):
One service required users to call a phone number to cancel their subscription. When we tried to call, we faced over 20 minutes of wait time. This type of “barrier method” can create frustration, as it gives the impression that the company is trying to trap users rather than respecting their decision to leave.

2. Instant, No-Questions-Asked Cancellation (The Missed Opportunity):
Another platform canceled the subscription immediately after the user clicked “Cancel,” without any confirmation or alternative options like pausing. While this approach is quick, it also misses valuable opportunities for feedback, retention, and customer engagement. A more thoughtful process could provide insights into why users are canceling and even help retain them with targeted options.

A Model to Emulate: Zoom’s Thoughtful Cancellation Flow

Among the best examples we found was Zoom’s cancellation flow. Although a bit lengthy, it balances customer respect with strategic retention options, creating a positive and engaging experience. Here’s how it works, step by step:

Step 1: Confirming Intent and Highlighting What’s Being Lost:
When a user initiates the cancellation, Zoom presents a confirmation screen that reminds them of the premium features they’ll lose, such as unlimited meeting time and access to exclusive apps. This initial prompt encourages users to reflect on the value they’re giving up.

Step 2: Offering a Pause Option:
Before the cancellation progresses further, Zoom offers the user the option to pause their subscription for up to three months instead of canceling it. This is a customer-friendly approach for those who may not need the service temporarily but could return in the future. It provides flexibility without the commitment of a full cancellation.

Step 3: Gathering Feedback:
If the user chooses to proceed with the cancellation, Zoom asks them to select a reason for canceling from a list of options, such as “Service no longer needed” or “Too expensive.” This step enables Zoom to capture valuable feedback for improving their service, while also allowing the user to feel heard.

Step 4: Finalizing with Options to Return:
Once the cancellation is confirmed, Zoom displays a final screen that makes it easy for users to reactivate if they change their mind. It includes options to “Reactivate Now,” “Pause My Plan,” “Get Offer,” or “Follow Us” for staying updated. This closing screen conveys that Zoom values the user and invites them back anytime, creating a respectful and welcoming exit.

The Bottom Line 

A well-designed cancellation flow is more than a functional requirement; it’s an opportunity to leave users with a positive last impression and even re-engage them. By avoiding “barrier” approaches and embracing a model like Zoom’s, SaaS companies can create a cancellation process that respects customer decisions while also gathering insights and providing flexible options. In our project, we aim to implement a similar approach to build a cancellation flow that prioritizes transparency, flexibility, and thoughtful engagement.

We hope this post gave you some insight into creating a customer-friendly cancellation process for your SaaS product. If you have any questions or would like guidance on implementing a thoughtful and effective cancellation flow, feel free to reach out to The SaaS Agency team. We’ve helped numerous non-technical founders build successful SaaS products, and we’re here to support you too. Contact us today to learn more!