Dear SaaStr: Should Cancellations be Effective Immediately for a SaaS Company? Why?

Do whatever is best for the customer.

It’s incredibly frustrating when a customer cancels, especially, one you’ve put a ton of work into.

But the thing is, it’s not necessarily over. Sometimes, you do get them back. At least once in a while:

  • Sometimes, you get them back directly. I.e., in 6 or 12 months, or even later, they sign up again. Business needs change. Things change.
  • More often, you get them back indirectly. Your buyer, your champion leaves to another company in a similar role. And there, she buys your product again.
  • Or they may at least down the road recommend you to someone else looking for a product in your category.  At least as one of the Top 2 vendors.  That alone can get you another deal.

But this only happens if they had a great experience — including on the exit.

It takes 7–10 years to build something in SaaS. Go long. Take care of your customers at every stage. Include the stage where they leave. It will pay dividends in the long run.

(Note: an updated SaaStr Classic answer)

Published on June 30, 2021

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