I'd also like to ad, regarding mailing cancelled members, a lot of people are against the idea of promoting their competitors in any way, shape or form. "We don't want to send them business or help them grow".
That is an outdated concept and it costs you money. Your competition is your best chance at squeezing more money out of those members who have chosen to move on from your product.
Take dating, for example. If a member has cancelled and your efforts to get them back (discounts, mentioning they have new messages waiting, new matches since their last visit, etc...) have failed, why wouldn't you send them an email such as:
"Hi member,
We're sorry you decided to cancel your membership on sitename. We wish you the best on your search for that special someone (or one-night stand, or big-titted red head, or personalize it based off their profile with you) and believe the following sites may be more to your liking:
- site 1, blurb, sample result matching their interests
- site 2, blurb, sample result matching their interests
- site 3, blurb, sample result matching their interests
etc..."
There is a LOT of money to be made doing this.
I often hear companies won't do this unless their competitor does the same for them; while in a perfect world, that would be great - you are doing this for additional revenue, which even if they won't return the favor, you should not just deny yourself that money.
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