Glossary
SaaS retention glossary
Short, plain-English definitions of the churn, retention and subscription-billing terms SaaS founders run into, with formulas and worked examples.
- Cancellation flowA cancellation flow is the set of screens a subscriber sees after clicking cancel: usually a reason question, one relevant offer and a clear way out.
- DunningDunning is the automated process of retrying failed payments and notifying customers to update their payment method before a subscription lapses.
- Exit surveyAn exit survey is a short question shown when a customer clicks cancel, asking why they are leaving so you can respond to it or learn from it.
- Involuntary churnInvoluntary churn is when a subscription ends because a payment failed, not because the customer chose to cancel. It is the churn a cancel flow cannot fix.
- Negative option billingNegative option billing is any arrangement where the customer keeps being charged until they take action to cancel. Most subscriptions work this way.
- Save rateSave rate is the share of cancellation sessions that end with the customer staying subscribed. It shows whether a cancel flow is doing anything.
- Voluntary churnVoluntary churn is when a subscriber chooses to cancel, as opposed to losing them to a failed payment. It is the churn a cancel flow can influence.
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