One issue with the equation [Cancellation rate] = [product utility] + [service quality] + [acceptable price] is that it assumes the product continues to be relevant or useful to customer forever. This may not be true for all products. Point in case is A/B testing software. Many small customers decide one day that they need to optimize their landing page. They purchase a subscription and do a couple of A/B tests. They are happy with the product but they anyway have to cancel because the tool served its job and they no longer need it.
Product utility was there, service was good and price was also okay. It is just that the product need wasn't continuous.
In cases like that you may still be figuring out the business model. Unless you are selling to companies that maintain lots of websites, that may not really be a subscription service but rather more like a "rental."
Product utility was there, service was good and price was also okay. It is just that the product need wasn't continuous.