The State of Customer Cancellations 2020
No matter how well your product works or how charming your customer service reps are, some of your customers will eventually leave. That doesn’t mean you have failed, however. Customers cut ties with companies all the time. The key is not to stop this natural cycle but to learn how to win customers back with your offboarding process.
Unfortunately, not many companies invest heavily in their offboarding routines. In their eyes, the customer wants to leave — why waste more time on someone who no longer provides revenue? Smart companies recognize that departing customers still have a lot of value to offer, though, especially if you can win them back.
- To learn more about why customers cancel and how they feel about the cancellation process, we conducted a survey of 1,000 U.S. customers in November 2019. While reviewing the data for publication, we discovered some fascinating truths behind the hidden world of customer retention, win-backs, and offboarding:
- The most frequently cancelled or changed services in our survey were cell phones (36.3%), gym memberships (34.3%), and cable subscriptions (36.3%).
- Of the total surveyed, 64.3% switched to a different provider, while 32.5% cancelled service entirely and did not find a replacement.
- Price was the most important factor in customers’ decisions to switch at 59.8%, followed by overall product satisfaction at 21.8%
- More than 60% of respondents believed brands could have done more to keep them as customers. Most people were open to offers, with 57.4% saying they would be open to staying for the right incentive.
- Every interaction matters, as evidenced by the 43.7% of customers that cancelled service after a single bad experience.
- The more we researched, the more we came to recognize three hard truths about the state of customer cancellations.