Canva's Cancel Subscription is a Masterclass in Retention

There's an old adage about SaaS: it's not just about getting customers through the door, it's about keeping them there. While flashy marketing campaigns and clever user acquisition strategies often steal the spotlight, the unsung hero of sustainable growth is customer retention.

And if there's one company that gives everyone a run for their money (and users!) on that count, it's Canva.

This year, Canva crossed over 185 million users. They'll probably be well past that by the time we hit publish on this article. With its even-grandma-can-use-it interface and massive template repository, Canva has democratised design for millions. But what's truly remarkable isn't just how they've attracted users – it's how they've mastered the art of keeping them.

This is a deep dive into one specific flow that captures the spirit of Canva's retention strategy: their 'Cancel Subscription' page. It's a masterclass in user psychology, value demonstration, and the gentle art of persuasion. By the end of this article, you'll see why this often-overlooked touchpoint might just be the most important part of your entire customer journey.

The Case for Retention: Why Keeping is the New Acquiring

Before we dissect Canva's strategy, let's talk numbers. In the world of SaaS, customer retention isn't just important – it's mission-critical.

Consider these statistics:

• Acquiring a new customer can cost five times more than retaining an existing one.
• Increasing customer retention rates by just 5% can increase profits by 25% to 95%.
• The success rate of selling to an existing customer is 60-70%, compared to 5-20% for new prospects.

These numbers paint a clear picture: while acquisition gets all the glory, retention is where the real gold lies. It's not just about saving on acquisition costs; retained customers tend to spend more, refer more, and provide invaluable feedback for product improvement.

Now, back to Canva. Their growth trajectory is enviable with an annual recurring revenue (ARR) of $2.3 billion, a significant increase from the $1.7 billion ARR reported in October 2023.

This trajectory underscores a crucial point: Canva hasn't just focussed on adding users to the top of the funnel. They've created a sticky product that people love and get repeat value from. And more importantly, they've built mechanisms to remind users of that value when it matters most – like when they're considering cancellation.

Canva's Retention Playbook: Turning Exits into Opportunities

At first glance, it might seem counterintuitive to focus on a page designed for users who want to leave. But that's exactly why it's brilliant.

Here's what Canva does right:

1. The Power of Loss Aversion

The most striking feature of Canva's cancellation page is how it leverages loss aversion. When a user attempts to cancel, they're greeted with a summary of their usage statistics. "You've removed backgrounds 622 times!" "You've used Brand Kit 520 times!"

This isn't just a recap – it's a powerful psychological trigger. Loss aversion, a concept in behavioral economics, suggests that the pain of losing something is psychologically twice as powerful as the pleasure of gaining something equivalent. By showing users exactly what they're giving up, Canva taps into this deeply rooted psychological principle.

Kyle Polar, the product-led growth specialist, describes this in his LinkedIn post about the cancellation flow:

Loss aversion is a big part of why reverse trials work so well, too. After you've tried a premium feature, you become much more hesitant to lose it.

2. Personalised Value Demonstration

Notice how the page doesn't just list features – it quantifies personal usage. This personalisation is crucial. It's not about what Canva can do; it's about what Canva has done for you. This shifts the conversation from abstract features to concrete, personal value.

Rosie Hoggmascall, product growth advisor, shares a break-down of this personalisation in this edition of her newsletter, Growth Dives:

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3. Collaboration and FOMO

For users on the team plan, the page subtly reminds them that they're part of something bigger. By mentioning "Your team will lose access to these features", Canva invokes a sense of community and shared resources. This plays into the fear of missing out (FOMO) – not just on features, but on being part of a collective experience.

4. Clear Path

While Canva provides a clear path to cancellation (the "Continue cancellation" button is a prominent red), they've structured the page to encourage pause and reflection. The cancellation isn't hidden; it's a prominent red, in fact. But the "Keep Canva Pro" button is framed positively, reinforced with a crown emoji. This subtle touch positions staying with Canva as the rewarding choice.

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5. Grandfathered Pricing

In previous avatars, this page was also upfront about the fact that the user is on a grandfathered pricing plan [This has since been removed; Canva recently raised prices to $15/month]. However, this transparency served two purposes: it reinforced the value of the current subscription and created a sense of scarcity – cancel now, and this special price is gone forever.

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Lessons for SaaS Companies: Crafting Your Retention Strategy

Canva's approach offers several key lessons for SaaS companies looking to boost their retention rates:

Make Cancellation a Conversation, Not a Transaction

Don't view cancellation as the end of the road. Instead, see it as an opportunity to re-engage and remind users of your value. Design your cancellation flow to be a dialogue, not just a series of clicks.

Leverage Data to Tell a Story

Use your product data to create a narrative for each user. Show them not just what they've done, but what they've achieved with your product. Quantify their success in a way that resonates emotionally.

Implement Smart Segmentation

Not all users are the same. Tailor your retention strategies based on usage patterns, subscription tiers, and user personas. A power user might respond to different incentives than an occasional user.

Create a Clear Value Proposition for Staying

Don't just focus on the negatives of leaving. Articulate a clear, positive reason for users to stay. This could be exclusive features, grandfathered pricing, or access to a vibrant community.

Use Behavioral Economics Principles

Study and apply principles like loss aversion, social proof, and the endowment effect in your retention strategies. These psychological insights can be powerful tools when used ethically.

Continually Gather and Act on Feedback

Use the cancellation process as an opportunity to gather valuable feedback. Why are users leaving? What could keep them? This information is gold for product development and future retention efforts.

Optimize for Long-Term Relationship, Not Short-Term Metrics

While it might be tempting to make cancellation difficult, focus instead on building genuine value and trust. Users who feel respected and valued are more likely to return or recommend your product, even if they do cancel.

Retention as a Growth Strategy

Canva's 'Cancel Subscription' page is more than just a clever design – it's a philosophy. It embodies the idea that every touchpoint, even one traditionally seen as negative, is an opportunity to reinforce value and strengthen user relationships.

As SaaS companies navigate tougher competition, the ability to retain users will become even more crucial. It's not just about reducing churn; it's about building a product and a brand that users are genuinely reluctant to leave.

The next time you're mapping out your growth strategy, remember: acquisition might win battles, but retention wins wars. Look at your cancellation flow not as a necessary evil, but as a critical touchpoint in the user journey. In the end, the best retention strategy is about consistently delivering value and making sure your users never forget it – especially when they're thinking about saying goodbye.

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