Define a Cancelation Period
Define a cancelation period for a subscription sold to business customers.
Preconditions and Considerations
- The subscription product is only sold to business customers.
- The cancelation period is communicated during the checkout process.
- The cancelation policy, which is used by Cleverbridge Customer Support to implement your company's policies and procedures regarding cancelation, has been updated.
To comply with consumer protection regulations, Cleverbridge does not offer a cancelation period for subscription products sold to private customers (B2C products). If you are interested in defining a cancelation period for a subscription product sold to business customers (B2B products), contact Client Experience.
Shieldware, Inc., offers security software for small businesses. Its product Shieldware Endpoint Security is sold as an annual subscription and costs $150 for 5 seats. To be able to better forecast their monthly recurring revenue (MRR), Shielware, Inc., has defined a cancelation period for their subscriptions sold to business customers.
- On January 1, 2017, a business customer signs up for an annual subscription to Shieldware Endpoint Security. On the checkout page, a text informs the customer that they will be automatically billed at regular intervals. It also states that if they want to cancel their subscription, they must do so at least 30 days before the next renewal date.
- On December 15, 2017, the customer decides to cancel the subscription by clicking on the Deactivate subscription link in the email they received from Cleverbridge on January 1, 2017. However, the customer sees a message that says that cancelation for the current billing interval, effective as of December 31, 2017, is not permissible anymore.
- On January 1, 2018, the Cleverbridge platform automatically bills the customer $150 for the next annual billing interval.
- On January 2, 2018, the customer clicks the Deactivate subscription link again and successfully cancels their subscription for the next billing interval, effective as of December 31, 2018.
Although not utilized in this use case, the following option is also available:
- Depending on your cancelation policy, Cleverbridge Customer Support can cancel the subscription effective December 31, 2017, if contacted by the customer.
Updated 2 months ago