Founder Playbook

Retention
the big three that I've seen work is pause like discount and kind of like connect with support...I've seen between like a 10 and 20% drop in churn depends a little bit on the use case but like it adds up to be material there's a reason all the giant companies do this

Cancellation Flow: Pause, Discount, Connect With Support Cut Churn 10–20%

Dan has implemented cancellation-flow interventions at multiple companies and consistently sees a 10–20% reduction in churn. The three tactics in order of effectiveness: (1) pause — especially powerful for habit-based products where users get busy; (2) temporary discount — offer 50% off for 3 months before losing them; (3) connect with support — route negative-experience cancellers to a human. The caveat: these flows require custom payment processor logic that isn't cheap to build; prioritize based on how much your churn numbers will actually move.


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Dan Layfield
Subscription IndexHelped scale Codeacademy ARR from $10M to $55M; consults subscription startups at subscriptionindex.com
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The Growth Formula: Churn, Retention Wins, & Smart Product Bets· 44:57
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