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I was shocked when I cancelled my Loom membership—here’s why
How to reduce subscription churn (the right way).
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I cancelled my Loom membership yesterday.
And I was shocked.
Pleasantly shocked.
Shocked at how easy and pleasant it was to cancel.
Which is rare. I’m so used to the guilt-tripping, shaming cancellation messaging of ‘are we breaking up’, ‘we’ll miss you’. Businesses pretending to care.
As well as the frustrating messaging, most companies do 3 big things wrong in their cancellation flows:
- Hide the cancellation button deep within settings
- Lengthen time to cancel with multiple intermediary screens
- Spam people via email asking them to come back
LinkedIn does 1. Classpass does 2. And see my earlier analysis of Calm as a prime example of 3….
The funny thing is these offboarding strategies increase churn, not decrease it. By the end of this article, we’ll look at how a more user-first, ethical approach can drive higher win-back, reactivation and retention rates.
Before we get into it, let’s look at why I cancelled my Loom membership in the first place.
In Oct 2023, I first wrote about how Loom drives product led growth (PLG) with email, followed by a deep dive into acquisition loops in November.
Since then, Loom has continued to grow at an impressive rate.
After a $130 Series C in May 2021 led by Andreessen Horowitz and a $1.53 billion valuation, the announced in Q4 2023 that it would be acquired by Atlassian for $975 million.
In the 2023 end of year report, Loom reported that the number of videos recorded was up 24% on 2022. Not only that, but the number of video views were up even more at 37%, hinting at the network effects growing.
