Our application does not cancel your account, rather the user's subscription gets cancelled.
That being said, is it better to kick the user out from the app completely after cancellation (They can login and resubscribe at anytime)??
Or is it better to keep them logged in after cancelling. (They will be able to navigate around the app, but the app's core functionality is disabled, unless they reactivate their subscription)??
Both from best business practices and user experience you should keep them logged in.
When user cancels your subscription the best practice is to tell them "Thank you very much, we've been so lucky to have you as a customer". Whether they need your services again, they will have no hesitation to re-subscribe if they have had smooth and pleasing experience, especially in the end.
On the user side, even if I cancelled a subscription, I might want to delete my profile picture, change email, phone, print billing statements etc. Also, I don't want to feel kicked-out of the door, once I decided to resign. I want to be respected from the beginning to the end and after.
From a business perspective, I can't see how you would want to ever kick them out entirely. It's much easier and cheaper to target past users than it is to gain new ones. Valuable data here would be to collect why they left and act accordingly.
From a user perspective, it's much less friction clicking a "Re-Subscribe" button than either going through the whole registration workflow or not knowing whether you have to do so to re-subscribe.
The only case I may see where you really want to lock them out is for harassment or other types of behavior, but that seems out of the scope of this question.
There's a marginal cost to storing the account data, particularly if it's sensitive, but in most cases having a customer potentially re-subscribe makes it worth it (or at least it should).
