Click-to-cancel is a principle that states it should be as easy for a customer to cancel a subscription as it was for them to sign up. If a user can subscribe online in a few clicks, they should be able to cancel with a similarly simple and straightforward process.

This concept has been gaining regulatory traction globally. While a recent US Federal Trade Commission (FTC) rule on the matter was vacated, the underlying principles are being adopted at the state level in the US and internationally, such as with the UK’s Digital Markets, Competition and Consumers (DMCC) Bill. These regulations aim to eliminate confusing, lengthy, and frustrating cancellation processes designed to trap users into unwanted subscriptions.

A compliant and user-friendly cancellation flow respects the user’s decision while ensuring the process is clear and fair. At its core, the process should be easily accessible and executable through the same medium the user used to subscribe. If they signed up on your website, they shouldn’t have to make a phone call to cancel.

Here’s a breakdown of a typical flow:

1. Easy to find: The option to cancel is clearly labeled and located in an intuitive place, such as account settings or subscription management pages.
2. Simple to initiate: The user clicks a button like “Cancel subscription.”
3. Clear confirmation: A confirmation step ensures the user didn’t click by accident. This is a chance to remind them of the benefits they’ll lose.
4. Optional feedback: You can ask for a reason for cancellation. This is valuable for product improvement but should not be a required step to proceed with the cancellation.
5. Final confirmation: The user receives a final confirmation that their subscription has been canceled, along with details about when their access will end.

A positive cancellation experience is crucial for long-term business health. While it may seem counterintuitive to make it easy for customers to leave, a difficult cancellation process can lead to negative reviews, chargebacks, and lasting damage to your brand’s reputation.

Here are some of the key benefits of a user-friendly cancellation flow:

• Builds trust and goodwill: A transparent and respectful process leaves the door open for customers to return in the future.
• Reduces customer support load: A self-service cancellation option frees up your support team to handle more complex issues.
• Provides valuable feedback: An optional survey during the cancellation process can provide priceless insights into why customers are leaving, helping you to improve your product.
• Ensures legal compliance: With regulations tightening globally, a simple cancellation process is becoming a legal necessity, not just a nice-to-have.

Building a cancellation flow that is both compliant and effective requires a thoughtful approach. Here are some best practices to keep in mind:

• Offer alternatives to cancellation: Before confirming the cancellation, you can offer to pause the subscription, switch to a lower-priced plan, or provide a temporary discount.
• Be transparent about the consequences: Clearly communicate what the user will lose by canceling, such as access to features or stored data.
• Confirm the cancellation via email: Send an email to the user confirming that their subscription has been canceled, including the date their access will end. This provides a clear record for both parties.
• Consider regional differences: If you operate in multiple countries, be aware of the specific regulations in each region and adapt your cancellation flow accordingly.

Kinde provides the tools to build a compliant and user-friendly subscription cancellation experience. You can empower your customers to manage their own subscriptions, including cancellations, through a self-serve portal.

When a customer initiates a cancellation, you can use Kinde’s workflows to trigger specific actions. For example, you can create a “Plan cancellation request” workflow that alerts you when a high-value customer wants to cancel, giving you an opportunity to intervene. You can also use webhooks to automate a variety of tasks, such as sending a confirmation email, revoking access to premium features, or updating the customer’s status in your CRM.

By using Kinde, you can create a cancellation flow that is not only compliant with emerging standards but also provides a positive user experience that protects your brand’s reputation.

• Cancel a subscription
• Plan cancellation request workflow
• Respond to customer activity using webhooks