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Playbooks9 min read

Churn deflection: the cancellation flow as a decision

Between 30 and 45 percent of accepted save offers go to customers who were staying anyway. How to spend margin only where it changes the outcome.

Romà Llambés
  • #Churn
  • #Retention
  • #Playbooks
Churn deflection: the cancellation flow as a decision

Frequently asked

Questions readers ask about this.

What is churn deflection?
Churn deflection is the set of interventions shown to a customer inside the cancellation journey: the exit survey, pause and downgrade options, save offers and the confirmation screen. It is distinct from churn prevention, which acts before the cancel click, and win-back, which acts after the customer has left.
What is a good churn deflection rate?
Deflection rate is the share of customers entering the cancellation flow who do not cancel within 30 days. Levels vary widely by category, so the meaningful comparison is incremental: the treated deflection rate minus the rate of a holdout group that saw no offer. Only that gap is a real save.
Why do save offers destroy margin?
Because a large share of customers who accept a save offer would not have completed the cancellation. Across instrumented save desks, 30 to 45 percent of accepted offers are non-incremental. Without a holdout that sees no offer, this spend is invisible and gets reported as retention success.
What should a cancellation flow offer first?
Pause and downgrade, because both are margin-free and both address real reasons to leave. Plan or feature changes come next. Discounts belong last, shown only where uplift scoring indicates the offer changes the outcome, capped in duration and never repeated for the same customer.
How do you measure whether a save was real?
Reserve 5 to 10 percent of flow entrants as an untreated holdout, compare completion rates, and re-check saved customers at 30, 60 and 90 days. A save that re-cancels within six weeks at a lower price is a discounted churn, not a deflection.

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