5 Techniques for Lowering Cancellation Rates and Retaining Client Loyalty

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Whether people purchase accommodations or cancel reservations, the post-pandemic period is the ideal moment to express your gratitude. In this post, we’ll look at how you may give flexibility in times of uncertainty.

Nobody likes to lose clients. You put a lot of time to get each one. You focus your efforts once customers sign up for your product or service on fulfilling and surpassing their expectations. As a result, receiving that call or email might be financially and emotionally devastating.

According to Harvard Business Review, a 5% decrease in customer defection can quadruple profitability. How could a doubling of earnings be achieved with such a little reduction of cancellations? Customers who stick with you spend more money, take up less of your time, and suggest other people to you.

We came up with five suggestions working with the TUI Cancellation Policy Department on reducing cancellation rates while maintaining client loyalty.

5 Techniques for Lowering Cancellation Rates and Retaining Client Loyalty

1. Continue to communicate frequently 

Continue to Communicate Frequently

Relationships determine the success of a subscription business with its customers. On the other hand, customers frequently believe that they are only important when offering a new service or product when the client has a problem that needs to be addressed. According to Kissmetrics, it’s critical for subscription-based businesses to engage with their audience regularly and beyond sales pitches.

As we see the example of Jet2 is a low-cost leisure airline-based company in the United Kingdom that operates scheduled and chartered flights. Jet2 Company has the best cancellation policy and continues to interact with the customers

Spam mail, whether in email newsletters, text messages, or promotional social media posts, isn’t a good idea because too much correspondence can make customers think businesses are obnoxious. Instead, communication should be sporadic, with a good mix of informative news and sales-oriented outreach.

Other effective ways to interact with customers are to ask for feedback on the products and services they receive. Distribute satisfaction surveys, and ensure that customers always have a way to contact customer service.

2. Make a rescheduling offer

Make a Rescheduling Offer

Propose rescheduling instead of cancelling a reservation may be done an infinite number of times and at any time before scheduled arrival. Our website’s “Support” section has instructions on adjusting your stay dates.

After you change a booking, the visitor will get an email confirmation. If someone made a reservation via the hotel’s website, the guest might modify the dates at their leisure. The link to a booking editing page is included in the confirmation email.

3. Establish a flexible cancellation policy

Establish a Flexible Cancellation Policy

Because of the continuing epidemic, your prospective visitors plan travels but are hesitant to book at non-refundable prices. Jet2 Cancellation Policy helps the travellers reschedule their tickets if, by chance, they have missed the flight due to any mishap. Still, they have to pay little extra charges for cancelling and rescheduling their tickets.

Suppose a traveller fulfils the entire company requirement to cancel out a ticket. In that case, it’s very simple for a traveller to cancel it and take payment with a deduction of a few charges.  For example, stop collecting costs for cancellations made one day before the arrival date; this will result in more bookings and increased client loyalty.

4. Review consumer information regularly

Review Customer Information Regularly

Purchase history, chat logs, website activity, and new client referrals are all factors that might be crucial to your company’s success. Evaluate the information you’ve gathered to establish the appropriate metrics, and then develop a dashboard that you can check regularly.

Look for symptoms of discontent, such as a decrease in purchase history or site visits or an increase in customer support calls. Determine a proactive strategy for contacting consumers who exhibit particular warning indicators so you may avoid possible cancellations.

5. Define the expectations of your customers

Provide something exciting for your customers to anticipate. Customer service entails more than just responding to questions and complaints; you must also meet their expectations, even if you haven’t received their feedback. The most crucial aspects of a perfect customer experience are:

However, pleasing someone you don’t know is difficult. As a consequence, devote some time to getting to know one another. Your customers recognize their top priorities and use these as a starting point for setting expectations.

Customers feel empowered when you set and meet their expectations. “Customers want to be empowered, not controlled,” the Harvard Business Review says. Empathy is required.” Being honest when making a promise is one of the ways to set and meet customer expectations.

Most SEO agencies fail miserably in this area. The vast majority of them make unattainable promises to web admins. They guarantee that their websites will be ranked number one on Google within a short period. If you work with clients in search engine optimization, never promise a first-page result.

Do you understand what just happened if you don’t achieve top rankings within the time frame you promised your client? As a brand, you’ve flopped.

“Don’t overpromise if you know you won’t be able to deliver,” I always tell my clients.

“The first step in exceeding your customers expect to know their expectations,” according to marketing consultant Roy Hollister Williams.

For example, keep track of what you promise in response time. If you say you’ll deliver the product in 30 minutes, keep your word. Even better, you’ll be able to complete the task in less than 25 minutes. It is not acceptable to fall short of your goals.

It would help if you only made promises you could keep. Set reasonable goals for yourself. Apologize and compensate your customers if you are unable to meet their expectations. It is not sufficient to compensate.


Customers often cancel due to unforeseen circumstances such as sickness or emergency. Keep in mind that utilizing your discretion to eliminate cancellation fees in some circumstances may result in positive publicity for your company that outweighs the money lost.

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