Feedback Breakdown: Turning Cancellations into Insights

Understanding the Challenge of Subscription Cancellations

For subscription-based businesses, customer churn can be a constant challenge. The most straightforward way to understand why users cancel their subscriptions is to ask them directly. However, customer feedback isn't always as clear or actionable as it seems, and simply asking users may not always reveal the full picture.

Initial Survey Results: Vague and Unhelpful

Take the case of a growing startup that used exit surveys to understand why users were leaving. Initially, the survey results seemed clear, but they weren’t helpful in solving the problem. In their initial survey, they found that:

- 60% of users canceled due to "lack of value."
- 18% said the service was "too expensive."
- 12% claimed they "no longer needed" the product.
- 6% cited "poor customer support."
- 4% mentioned "technical issues."

At first glance, the biggest reason for cancellations—60% citing "lack of value"—seemed like the obvious issue. However, this response was too vague to act upon. What did "lack of value" actually mean? Without further clarification, it was difficult to know where to start fixing the problem.

The Rule for More Actionable Feedback

To get better insights, the startup decided to implement a simple yet effective rule: If any answer received more than 20% of the total responses, they would break it down into more specific subcategories. Similarly, if any answer accounted for less than 3%, they would remove it from future surveys to maintain focus on the more significant issues.

Breaking Down the Feedback for Clarity

In addition, after implementing this approach, the startup revisited their survey data. This time, they broke down the 60% “lack of value” response into smaller segments. The updated results revealed:

- 30% of users felt there wasn’t enough content on the platform.
- 15% found the product confusing and difficult to navigate.
- 15% struggled with a complicated setup process.

Turning Insights Into Action

Moreover, with these more detailed insights, the company could now take actionable steps to address specific problems. By improving content offerings, simplifying the user experience, and streamlining setup, the startup could work directly on reducing churn.

The Key Takeaway

To conclude, exit surveys are a powerful tool, but the feedback needs to be both specific and actionable. When responses like "lack of value" or "too expensive" dominate, it’s essential to dig deeper. A simple rule—breaking down responses above 20% into subcategories—can turn vague feedback into practical solutions that improve customer retention and reduce churn.

Follow us for more:

Innovation Cafe is a dynamic platform at the forefront of innovation, entrepreneurship, and collaboration in Qatar. We serve as a hub where startups, entrepreneurs, professionals, and innovators come together to exchange ideas, share knowledge, and drive positive change. Through our diverse range of programs, events, and initiatives, we empower individuals and organizations to navigate challenges, and make an impact.