Streamlining Cancellations Could Boost Customer Trust and Reduce Frustration
Let’s be real. We've all been there—trapped in a subscription or membership that seemed impossible to cancel. A staggering 42% of consumers say they've kept paying for a subscription just because canceling was too difficult. For those of us in the handmade business world, these frustrations matter. If customers feel trapped, trust gets eroded, and that’s a risk no brand should take. Enter the FTC’s new 'Click to Cancel' rule.
The Federal Trade Commission's (FTC) latest rule aims to make canceling subscriptions as easy as signing up. It mandates that if a company offers a subscription service online, they must allow consumers to cancel it online too—no phone calls, no hoops to jump through. As a handmade seller, this change may impact you directly if you're offering subscription boxes, memberships, or any recurring products. Let’s break down what this means for your business.
Why 'Click to Cancel' is a Game-Changer
In the past, subscription services often used friction to retain customers. Hidden cancellation buttons, long wait times, or complicated processes all served as barriers to leaving. But now, the FTC is shifting the balance of power back to the consumer. For handmade sellers offering subscription boxes (think monthly soap clubs or candle-of-the-month memberships), simplifying the cancellation process is more than just complying with the law—it’s about fostering trust.
I’ve learned firsthand that transparency in cancellations can be a win. In one of my previous ventures, we revamped our subscription model to make it ultra-easy for customers to pause, skip, or cancel—and guess what? It led to higher retention rates because customers felt more in control.
How to Prepare Your Business
If you offer any type of subscription, now is the time to audit your processes. Make sure that your cancellation option is as visible and easy to access as the signup option. It could be as simple as adding a prominent "Cancel Subscription" button in your account section. Beyond compliance, it shows your customers that you value their experience, whether they stay or go.
Real-World Example: We recently migrated our subscription box, the Scent Club for Wicked Good from CrateJoy to Shopify. The subscriptions are way easier to skip, pause, and cancel—no customer emails, no phone calls, no hoops to jump through. It’s taken a load off our customer service and created a smoother, more enjoyable customer experience.
Action Tip: Take a moment to check if your current subscription services meet the new 'Click to Cancel' standards. A simple audit today could save you from compliance issues tomorrow.
How easy is it for your customers to cancel or pause their subscriptions? Could this new rule boost their trust in your brand?
By embracing the new FTC 'Click to Cancel' rule, you’re not just staying compliant—you’re enhancing the overall customer experience. Simplifying your subscription model can build trust, reduce frustration, and ultimately lead to stronger customer retention. After all, a happy customer is more likely to return, even after a cancellation. So, take the time to evaluate your subscription processes now. A few simple changes can go a long way in creating long-lasting relationships with your buyers.
Question: Do you have a subscription option for your handmade products? If not, what’s holding you back?
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