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Knowing this information frequently will help implement timely strategies to rekindle sales. But, let's see what it's all about and how you can use it to your advantage.

What is the Cancellation Fee?

The Cancellation Rate or Customer Cancellation Rate is the term that is given to the percentage of customers or users who have stopped following our website or are unsubscribed from the subscription list in a given time.

The term is also applicable for social networks or customers who abandon the purchase of a product or service. In any case, it refers to a metric that indicates that the company has stopped perceiving conversions in a period of time.

For this reason, it serves as the basis for determining the losses produced with respect to the investment made to acquire and retain users or customers.

Keep the low customer acquisition cost It must be an important objective of a business. Hence the relevance of keeping an audience or clientele pleased with what is provided.

How is the Cancellation Fee Calculated?

The Cancellation Fee is very easy to obtain. It is only necessary to divide the number of users who have unsubscribed in a period, by the number of these at the beginning of the same period and then multiply it by 100.

Cancellation Rate = Users who have left / Users listed at the beginning of the period * 100

It is necessary to take into account the behavior of users to establish what can be normal and what not. There is no specific average with which you can check if you are doing well or badly, unless you know the numbers of your direct competition.

The important thing is that you follow up and begin to consider what is an acceptable rate for your company or brand. Also, implement actions that help sustain your subscriber portfolio on the rise.

How to Reduce Cancellation Rate?
These tips will help you decrease the churn or cancellation rate in your business.

1.- Try to discover the reason for the cancellation or abandonment

There are many reasons why a customer may abandon the purchase of a product or service. A move, economic problems, difficulty in access, can be some of them.

However, when it comes to email subscription lists or unfollows on your social networks, it must be a more complex situation.

Perhaps the information provided in the emails is irrelevant to the user, they do not like the frequency in which they are issued, perhaps they do not identify with an idea published on social networks.

An effective technique that you can implement is to consult the person before unsubscribing, why they are doing so. Automate this data collection with a form, to make the process more efficient.

2.- Add value to your audience

You must propose to review those contents, messages or changes that you may have applied in that time.

Your audience is likely to have a higher preparation than the level of content you provide, so you should dig a little deeper with respect to the research.

Perhaps you are not creating enough promotions that make it attractive to your audience to continue consuming your products or services. Try to recognize the real needs of your target market and focus on offering assertive solutions.

3.- Offer real reasons for them to come back for you

Your products, services or content must have some differentiating element. Loyalty is what will help you to maintain a level of sales in accordance with your objectives and with the least investment, but in addition to the good treatment, you must try to differentiate yourself.

Don't stop thinking about how to attract those customers who have been loyal to your brand over time. Also, it tries to the maximum to retain new ones with quality products and according to their needs.

4.- Listen empathically to complaints

There is a clear gap between expectation and satisfaction that inevitably depends on what you do and how you do it. It is not always possible to please everyone as we hope.

Perhaps the customer decides to unsubscribe without you being able to do anything to stop it. But, what you should not stop doing is learning from the situation, that is, you must gain something from the problem even if you lose in economic or prestige terms.

On many occasions, the novelty that will propel your business towards its best economic performance is disguised as a complaint. Analyze what the client exposes, do empathetic listening and extract new ideas that provide you with opportunities.

5.- Know your ideal client well

Describe your ideal client It is one of the first steps you should take to understand how you should communicate. In this regard, define the brand archetypes It will pay much more the way of the connection with your audience.

It is not just about knowing what your audience needs, but you must also learn to express yourself with elements that favor the creation of emotional ties between your client and your brand.

Proper segmentation will help you offer greater personalization and you will be able to correctly approach those who are really willing to buy your products or services.

Conclusion

The Cancellation Rate is the metric aimed at measuring the number of users or prospects who have decided to abandon the media, products or services that your business has.

It can be a newsletter cancellation, a social network unfollow or a service subscription deletion.

It is calculated taking into account the number of users who have abandoned, divided by the number at the beginning of the period, all of this multiplied by 100.

With this metric you can know how much audience losses or income losses that these actions will generate for your business represent.

To prevent this from happening to you, you must follow these recommendations:

1. Find out why.
2. Offer the right solutions.
3. Make your business attractive.
4. Listen carefully to complaints.
5. Get to know your ideal client well and establish good communication with them.
    

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