There are a lot of reasons someone might cancel an order. Some of them are out of our hands, but other times there might be a way to give an incentive to reconsider. One example of this could be that they found the price a bit higher on your store. A possible solution. Send them a coupon for some savings if they order again.
As with many of the posts I write here, this is one of those extensions that if you simply set up for your clients site, they can easily manage it themselves.
Automatically Send an Email on a Canceled Order
The extension Payment Reminder gives you a unique option to send automated-emails to orders when they are cancelled.
In the settings, you can set the reminder interval and limit. Then you have the options to toggle on and use the other features as well.
Next you will find the email settings and the ability to add a custom logo and footer to the email.
And here is where you create your email. You can use placeholder for both your subject and email content. You will also choose the coupon that you create.
As you see, when creating the coupon, you can enable the condition for it and also disable any payment options you might want to apply to the coupon.
At any time you can view all of your cancelled orders and optionally send out an email manually.