Revenue Growth with Custom Cancel Flows
- by Shopify API
The health and fitness industry has pushed the limits of growth for years, running hundreds of experiments on paywalls, onboarding sequences, and subscription models. For many teams, these strategies have flatlined. Growth is slowing, developers are burned out, and marketing teams are struggling to find new ways to move their products and services. But 2024 brings a major opportunity for startups to take advantage of an emerging trend that could revolutionize subscription retention—custom cancel flows.
With the global shift from in-app subscriptions to web-based payments, startups are no longer tied to Apple’s 30% commission. This opens up new avenues for revenue growth, with custom cancel flows being one of the most promising.
For years, app developers had to rely on platforms like Apple and Google for payment processing, leaving them at the mercy of high fees and limited control over subscription flows. However, the introduction of web-to-app funnels allows developers to move their payment systems to the web, bypassing hefty platform fees.
Additionally, in Qatar’s growing startup ecosystem, this shift offers a significant opportunity for health and fitness apps, which are already riding a wave of user demand.
Now that Qatari startups can fully control the subscription process on the web, they also control cancellations—and that’s where the goldmine lies.
Subscription churn has long been a thorn in the side of subscription-based businesses. Most apps in the market rely on cookie-cutter cancel flows that offer little insight into why a user cancels. Worse, they miss the chance to retain users at this critical stage.
But the custom cancel flow can change that.
Imagine you're running a health and wellness app based in Qatar. A user initiates a subscription cancellation. Instead of simply processing it, your app presents them with a well-thought-out cancel flow, asking why they want to leave. Are they unhappy with the content? Do they think it's too expensive? Based on their answers, you can offer:
- Discounts for loyal users who think the subscription is too pricey.
- Extended trials for those who need more time to explore premium features.
- Subscription pauses for users who want a break but don’t want to cancel permanently.
By understanding why your users cancel and tailoring offers accordingly, you can cut churn by 10-20%, keeping more users—and their money—on board.
For example, if your fitness app earns QAR 1 million annually, reducing churn by even 10% can mean an additional QAR 50,000 to QAR 100,000 in revenue. Not a bad return for implementing a custom cancel flow?
The smallest cancel flow projects might involve 20 screens, but that’s just the start. A comprehensive cancel flow usually has 30-50 screens, reflecting various scenarios and user decisions.
Here are just a few of the questions that need to be answered when designing this critical part of your app’s experience:
- What if a user cancels after accepting a discount offer but changes their mind later?
- How does the cancel flow handle users who are on a temporary subscription pause?
- What’s the difference in messaging for someone canceling a trial versus a full subscription?
These complex scenarios require significant design and development work. Yet, the payoff can be immense if done right. Unfortunately, many startups underestimate the complexity, leading to rushed and incomplete implementations.
A common approach is for a designer to sketch out a few simple screens, followed by a quick build from the frontend team. Only later does the backend team realize how many critical edge cases were missed. The result? Weeks of back-and-forth, delayed launches, and frustrated teams—leaving potential revenue on the table.
For startups, building a successful cancel flow is not just about plugging a few screens into an app—it’s about creating a strategic funnel that retains more users and maximizes revenue.
Here’s how to get it right:
1. Invest in Research: Start with user research to understand the most common reasons for cancellation. Use this data to inform your cancel flow design.
2. Collaborate Early: Involve designers, frontend developers, and backend teams from the beginning to avoid miscommunications and missed scenarios.
3. Test and Iterate: Don’t just build it and forget it. Treat your cancel flow like any other feature in your app. Run A/B tests, analyze the data, and iterate on the flow to improve retention over time.
4. Tailored Offers: Use your cancel flow to present tailored offers that address specific user pain points. For example, Qatari users looking to cancel because of price sensitivity may respond well to seasonal discounts, while those needing flexibility will appreciate pause options.
By taking a thoughtful, strategic approach to cancel flows, Qatari startups can retain more users, boost revenue, and set themselves apart in an increasingly competitive market.
If your startup is ready to take advantage of this trend, now is the time to invest in building a robust cancel flow. With the potential for a 10-20% reduction in churn, the rewards are well worth the effort.
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