Ledgerly: cancel flow and failed-payment recovery plan
Baseline math (per 1,000 subscribers)
| Share | Subs lost/mo | MRR lost at $29 | |
|---|---|---|---|
| Total churn | 6.0% | 60 | $1,740 |
| Involuntary (failed payments) | ~2.0% | ~20 | $580 |
| Voluntary | ~4.0% | ~40 | $1,160 |
I assumed the one-third figure is net of whatever Stripe's defaults already recover today. If you have gross failure counts, I can re-baseline.
Targets at 90 days: involuntary 2.0% โ ~1.2%, voluntary 4.0% โ ~3.2%, total 6.0% โ ~4.4%. That is roughly a 27% cut in churn. Treat these as hypotheses to test, not promises.
Part 1: Voluntary cancel flow
Flow: Settings โ Cancel โ one-question survey โ one matched offer โ confirm โ post-cancel.
Survey
Title: "Help us improve: what's the main reason you're cancelling?" It is single-select with optional free text. Options, ordered by expected frequency (re-sort quarterly):
- Too expensive
- Not using it enough
- Missing a feature I need
- Switched to another tool
- Bugs or technical issues
- Don't need it right now
- Business closed or changed
- Other (free text)
Every screen has a visible "Continue cancelling" button, and the survey is skippable.
Offer matrix ($29 plan)
| Reason | Primary offer | Fallback |
|---|---|---|
| Too expensive | 25% off for 3 months (saves $7.25/mo, $21.75 total) | Lower tier or annual plan |
| Not using it | Pause 1โ3 months, data kept, auto-resume with a reminder email 7 days before | Free 20-minute setup session |
| Missing feature | Roadmap note plus workaround guide, and a "notify me when it ships" option | Pause |
| Competitor | Short "what did they offer?" free-text, then a comparison page | 25% off for 3 months |
| Bugs | Open a support ticket with priority routing, shown before any discount | One month credit |
| Temporary need | Pause (up to 3 months) | Downgrade |
| Business closed | No offer. Offer a data export and a graceful exit. | None |
Guardrails
- One primary offer and one fallback per reason. Never show a wall of options.
- Discount cap is 30%. Allow one discount per account per 12 months, so people can't cancel repeatedly for deals.
- Pause is capped at 3 months.
- No guilt copy, no countdown tricks, and no confirm-shaming on the decline button.
- Mobile-first layout, since many cancellations happen on a phone.
Confirmation and post-cancel
- Confirmation screen: "Your access continues until [date]. You won't be charged again." Include a one-click "Undo cancellation" link, and offer a data export.
- Cancel at period end via Stripe
cancel_at_period_end. - Send an immediate confirmation email with a reactivation link.
- Win-back sequence at day 7, 30, and 90 (see the emails skill). Day 30 is tied to the stated cancel reason, such as a feature-shipped notice.
Proactive layer (before they reach Cancel)
- Usage down 50% or more for 2 weeks โ "Need help?" email.
- No login for 14 days โ re-engagement email.
- Billing page or data export visits โ flag the account as high risk.
- Renewal reminders are mostly unneeded for monthly billing. Use a value-recap email at month 3 and month 11 instead.
Measurement
- Cancel-flow save rate target: 20โ25% of cancel sessions, with offer acceptance of 15โ25%.
- Track 90-day retention of saved users separately. A save that cancels 30 days later doesn't count.
- Pause reactivation target: 60%+.
- First test: discount depth (20% vs 30%) and pause length (1 vs 3 months). Run one variable at a time, with feature flags such as PostHog if you use it.
Part 2: Failed-payment recovery (about 1/3 of churn)
Pre-dunning (prevent failures)
- Turn on the Stripe card account updater (automatic) and Smart Retries.
- Send card-expiry emails at 30, 15, and 7 days before expiry.
- Ask for a backup payment method after the first successful renewal, not at signup.
- EU: offer SEPA Direct Debit at checkout. It has far fewer expiry-related failures than cards.
- EU: use
setup_future_usage=off_sessionwith SCA/3DS at signup so renewals are exempt where possible.
Retry logic by decline type
| Type | Action |
|---|---|
| Soft decline (insufficient funds, timeout) | Smart Retries, about 4 attempts over 7โ10 days, favoring paydays and the original billing time |
| Hard decline (closed, stolen, invalid) | No retries. Go straight to "update your card". |
| Authentication required (EU SCA) | Don't retry blindly. Send an on-session link to complete 3DS. |
Keep total retries well under card-network limits.
Dunning email sequence (plain text, transactional)
| # | Timing | Message |
|---|---|---|
| 1 | Day 0 | "Your payment didn't go through. Update your card here." Direct link to the Stripe-hosted billing portal. |
| 2 | Day 3 | Friendly reminder. Mention what's at stake: data, history, and reports stay safe. |
| 3 | Day 7 | "Your account will pause in 3 days." |
| 4 | Day 10 | Final notice, with a support contact and a reply-to for help. |
- Also show an in-app banner and a lock-on-login prompt from day 0.
- Optional SMS or push at day 5 for users who opted in (only where consent exists).
- Language: "your payment didn't go through", never "you failed to pay".
- Use localized currency and language for EU customers.
- When a customer fixes their card, retry immediately instead of waiting for the next scheduled retry.
Grace period and end state
- Keep access (read-only after day 7) through day 10โ14.
- After that, cancel the subscription but keep data for 90 days with a one-click reactivate link.
- Feed those users into the win-back sequence, tagged "payment failure", not "chose to leave".
Measurement
- Payment recovery rate target: 60%+ overall (soft 70%+, hard 40%+).
- Pre-dunning prevention target: 20% of would-be failures.
- Track involuntary churn as a separate line item from voluntary churn.
- Report weekly during the first month: failures, recoveries by decline code, and email-to-update conversion.
Compliance (US and EU)
I'm not a lawyer. Have counsel review before launch.
- US: keep online cancellation as easy as sign-up. The federal FTC click-to-cancel rule was struck down in 2025, but state automatic-renewal laws (California, New York, and others) still require easy online cancel and clear renewal disclosures. This flow's single survey, one offer, and visible exit is built to satisfy that.
- EU: a clear "cancel contract" function is required in Germany and is increasingly expected elsewhere. The EU consumer-rights withdrawal-button requirement is phasing in during 2026. Keep the cancel path to a few clicks, with no forced survey.
- GDPR: dunning and cancellation emails are transactional. Win-back marketing needs a lawful basis or consent in the EU, so gate it accordingly.
- PSD2/SCA: failed 3DS payments need customer action, which is why the authentication-required row above doesn't retry.
Rollout order
- Week 1: enable Smart Retries, the card updater, and Stripe's built-in dunning emails. Add SEPA for EU customers. Tag decline codes.
- Week 2: replace the default emails with the custom 4-email sequence and add the in-app banner.
- Weeks 2โ4: build the cancel flow with the survey and the "too expensive" and "not using" offers first (the likely top two reasons), plus pause.
- Month 2: add the remaining reason paths, win-back emails, and the proactive risk emails.
- Month 3: start A/B tests and review save-offer LTV.
You can build the cancel flow in-house with the Stripe Billing Portal and a small custom screen, or buy Churnkey or ProsperStack. At $29/month, buying is probably faster if you have under a few thousand subscribers.
Next, I can draft the dunning email copy, the cancel-screen copy per reason, or the Stripe configuration and webhook handling. Tell me which you'd like first.
Real run in an isolated folder with only this skill installed. Only the Skill and Read tools were enabled, so nothing was fetched from the web and no file was written. The example is fictional. The app and its numbers are invented.
What it does
Covers both voluntary and involuntary churn. For voluntary churn it designs the cancel flow (trigger, exit survey, dynamic save offers by reason, confirmation), lists save-offer types (discount, pause, plan change, concierge help) and UI patterns. For prediction it describes risk signals, a health score model and proactive interventions. For involuntary churn it sets out the dunning stack: pre-dunning to prevent failures, smart retry logic, a dunning email sequence and recovery benchmarks. It also covers key churn metrics, cohort analysis, A/B tests for cancel flows and common mistakes. References hold cancel-flow patterns and a dunning playbook.
How it works
- It asks about your current churn, billing platform, product and usage data and constraints.
- It designs the flow, the retry and email plan, and the metrics to watch, with a baseline calculation per 1,000 subscribers.
Good for
Subscription and SaaS teams with churn from cancellations or failed card payments.
Low risk: pure instructions with no scripts, no network access and no file writes. This is business advice that affects customers and revenue, so check it against consumer-protection rules in your markets. The skill warns against dark patterns such as hiding the cancel button and notes US FTC click-to-cancel requirements, but laws differ across the EU, UK and US states, so treat that as a starting point, not legal advice. Discount and save offers cost margin; model the numbers first. Some links point to tool guides not included in this package. Tried once on an invented subscription app.