Most SaaS companies have strong opinions about cancellations. Fewer have a plan for customers who ask to pause instead.
That gap creates problems.
A pause feature can help reduce churn and give users a reason to return. But if you rush it, you’ll end up with broken billing and messy metrics.
This guide looks at where a pause feature makes sense, when it doesn’t, and how to figure out if it’s right for your product.
Why Even Consider a Pause Option?
A growing number of users want flexibility. In 2024, the use of pause features grew by 66%, and more than half of users likely to cancel said they’d prefer to pause instead.
Companies that offer a pause option often see 10-20% of cancellation attempts convert into pauses. That matters, especially when the average customer acquisition cost sits at $700+ and payback takes a year or more.
Offering a pause can:
- Reduce short-term churn
- Give customers a way to step back without quitting entirely
- Keep account data intact, making reactivation easier
- Help users feel in control, not locked in
It’s often the better option, especially if the alternative is losing the customer entirely.
Why It’s Not Always a Good Idea
It sounds appealing, but pause features come with their own set of problems.
You lose revenue. Paused users aren’t paying. That hits MRR immediately, and if many users pause at once, it’ll show in your metrics.
Some won’t come back. A portion of users will use the pause option as a softer way to cancel. They weren’t sure how to leave. Now you’ve made it easy.
It complicates billing. You’re now dealing with a third customer state – ‘paused’ – which means more system rules, edge cases, and chances for things to break.
It can be abused. Without limits, users may try to pause repeatedly to avoid charges while keeping data access. (This happens more often than you’d hope.)
A pause feature can be useful, but only if it’s built deliberately and managed properly.
Is It Right for Your Product? A 6-Question Framework
Before rolling out a pause option, ask yourself the following:
1. Are people cancelling for temporary reasons?
If they’re pausing due to budgets, time constraints, or short-term shifts in priorities, a pause can help. In 2024, a third of voluntary churn came down to budget cuts.
But if they’re leaving because they don’t see value or couldn’t get started, a pause won’t solve that.
2. Is usage seasonal or project-based?
Some products aren’t used all year round. Marketing tools, tax software, and event platforms all see spikes and lulls. If you expect continuous use on a monthly plan, but your product’s only needed occasionally, users will either churn or ask to pause.
3. Do you already offer a downgrade path?
A solid free tier or entry plan might already serve the same purpose. But if it’s all or nothing, pausing could be the middle ground your users need.
4. Can your billing system support it?
Stripe supports basic pauses. Recurly and Chargebee offer more flexibility, including timed pauses and automated restarts. If you’re on a custom stack, it may require real engineering time, so weigh that against the value you expect.
5. Do you have a reactivation plan?
A pause is only useful if you bring users back. That means emails, product nudges, reminders, and maybe an offer. Otherwise, you’re just delaying the inevitable.
6. Is retention your priority right now?
If you’re focused on lifetime value and reducing churn, it might be worth testing. But if your current goals are all short-term revenue and clean charts, a pause feature could hurt more than it helps.
If you answered “yes” to four or more, it’s worth exploring. Just don’t rush it.
How Other Companies Handle It
A few quick examples:
Userlike
A B2B live chat tool. When users click cancel, they’re offered a pause instead. Around 20% accept. That makes sense, as many of their customers use the product for short-term projects.
Hulu and Disney+
Both let users pause for up to 12 weeks. This keeps seasonal viewers in the system and makes it easy to resume when the next series drops.
FabFitFun
Their “skip a box” feature acts as a pause without calling it that. It’s raised during cancellation and helps keep subscription fatigue from turning into churn.
Spotify and Headspace
Neither offers a pause. Instead, they focus on both making cancellation and reactivation easy. Spotify’s free tier helps here. Headspace saves progress and encourages return later.
The point isn’t to copy any one model. It’s to choose the approach that fits your product and your users.
How to Introduce a Pause Option (Without Breaking Everything)
Start small.
- Let support agents offer it manually to users trying to cancel
- Track how many accept it, and how many return later
- Don’t promise anything you can’t technically support yet
If that works, move to a simple built-in version:
- Set clear limits (e.g., up to 3 months, once per year)
- Pause billing, not just access
- Notify users before billing resumes
- Include one or two check-in emails during the pause
- Don’t let them use the full product for free in the meantime
Make expectations clear up front. If you don’t, some users will treat the pause button as a way to stop paying while still keeping full access.
What You Should Measure
You’ll want to track:
- How many cancellations convert to pauses
- How many paused users return (and when)
- Their value post-return (do they churn later anyway?)
- The net impact on revenue and support workload
Look at how paused users behave once they return. Do they stick around and keep paying? Or do they disappear again a month later?
If you want to go deeper, compare them to other groups, such as brand-new customers or long-time subscribers. Comparing groups like this is known as cohort analysis, and it can tell you whether the pause feature actually works, or just delays the inevitable.
When to Skip It Entirely
If people are leaving because they don’t get value from your product, pausing won’t change that. It just delays the decision.
A pause option also doesn’t make sense if:
- You already have a strong free plan
- Users rely on your product every day
- Your billing system would need major changes to support it
And if your churn problem is down to poor onboarding or unrealistic expectations, you’ve got bigger issues than whether someone can hit pause.
In cases like these, it’s better to make cancellation painless and reactivation easy. Let users leave on good terms. Then give them a clear path back if and when they’re ready.
Final Thoughts
A pause feature isn’t there to be generous. It’s there to keep the door open for someone who might still return.
Used well, it gives customers breathing room without cutting ties. Used badly, it becomes a loophole that drains revenue and muddies your metrics.
The real question isn’t whether a pause option is a good idea in theory. It’s whether it makes sense for your product, your customers, and your goals right now.
If you’re considering it, start manually, and track what happens. Only build it into the product once you know it makes a difference.
Not sure whether a pause feature makes sense for your product, or how to build one without breaking everything else?
That’s the kind of question we help SaaS teams answer every day. If you’re looking for ideas grounded in what actually works, not what looks good on a roadmap, please feel free to land in our inbox anytime.
We’re reachable at [email protected].
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