Download the full white paper here: www.premachurn.com Premachurn—the loss of customers during the onboarding process—is hurting businesses. In this presentation, you'll learn what premachurn is, what causes it, and how to fix it. Keep your customers, and get more from your marketing dollars by identifying and eliminating premachurn. www.ariad.ca

1. How to fix onboarding,
keep customers,
and get more from
your marketing dollars
Premachurn

2. pre•ma•churn
pre•MA•churn N.
The loss of brand-new
customers, acquired by
successful marketing, before
they are even fully onboarded.

3. pre•ma•churn
pre•MA•churn N.
When consumer products
are sampled or purchased but
remain unused by the people who
buy them, because they don’t
understand how to use them.

4. pre•ma•churn
pre•MA•churn N.
When consumers sign up for
a financial product, but then
don’t use it because they don’t
activate their new account.

5. pre•ma•churn
pre•MA•churn N.
When apps are downloaded
but are then rarely used because
the user wasn’t supported in
becoming a regular and habitual
user of the service.

6. Premachurn
costs
businesses
$

7. $1B
revenue
company
5.5%
revenue
spent on
acquisition
marketing
10%
acquired
customers
fail to make
it through
onboarding
$550,000
marketing spend
lost annually
The lost marketing budget
*Source: Focus B2B Marketing Budget Gains On Business Outcomes To Succeed In 2014, Forrester, January 2014 (forrester.com);
B2C Marketers Must Turn Fragmented Marketing Budgets Into Business Budgets, Forrester, December 2013 (forrester.com)

8. The missed opportunity
$1B
revenue
company
80%
revenues are
post initial
sale
10%
acquired
customers
fail to make it
through
onboarding
$90M
of potential revenue
is lost annually
*Source: Focus B2B Marketing Budget Gains On Business Outcomes To Succeed In 2014, Forrester, January 2014 (forrester.com);
B2C Marketers Must Turn Fragmented Marketing Budgets Into Business Budgets, Forrester, December 2013 (forrester.com)

9. Why it’s about marketing
The steps to treat premachurn
THE CAUSES OF
PREMACHURN

10. • Three specialized roles in
creation of customer interactions
• Brand experience is responsible for ensuring
the brand is distinct and identifiable
• Customer experience focuses
on creating positive human interactions
• User experience creates
well designed functional interactions
Brand
experience
Customer
experience
User
experience
A lack of integration
between key roles

11. • Onboarding seen as functional
• The exclusive preserve of operations
and/or user experience teams
• Interaction with brand and customer
experience teams minimal
Onboarding is often siloed
User
experience
Brand
experience
Customer
experience

12. In the eyes of the customer,
brand experience, customer
experience and user experience
are the same

13. The causes of premachurn
The steps to treat premachurn
WHY IT’S
ABOUT
MARKETING

14. Where is the premachurn
in your company?
Are there patients
who fail to adopt new
treatment regimens or
healthcare aids?
Are there new products
purchased but not
used by
the consumer?
Are clients signing
up but failing to fund
their account?
Are apps and programs
being downloaded but
not used?

15. Premachurn
hurts marketing
It loses the
potential
lifetime value
of customers
It costs
marketing
budget
2
It damages the
reputation of
marketing
31

16. Marketers have the
skills to fix premachurn
Marketers
understand
the brand
Marketers
understand
the customer
journey
Marketers take
a longer view of
acquisition
2 31

17. The causes of premachurn
Why it’s about marketing
THE STEPS
TO TREAT
PREMACHURN

18. 8 steps organizations can
take to treat premachurn
1.
Define where
onboarding
begins and ends
2.
Map the journey
and current
experience
3.
Map the ideal
experience
4.
Plan your
content
5.
Build internal
stakeholder
support
6.
Prototype,
test, refine
7.
Implement
8.
Measure
and adjust

19. For an enterprise IT sale, this might be where
sales takes over responsibility for a prospect
For a consumer packaged good, this might be
when the product is sampled or in-store at shelf
For a discount brokerage, this might be when
the customer has made a first transaction
For a media organization, this might be when
a customer has purchased a subscription
The beginning
The end
1.
Define where onboarding begins and ends

20. Between the beginning and the end, map every touchpoint:
• What channel?
• What happens?
• What happens when things go well?
• What happens when things do not go well?
• How does the customer feel?
Touchpoint
1
Touchpoint
2
Touchpoint
3
Touchpoint
4
Touchpoint
5
2.
Map the journey and current experience

21. • Focus on the ideal rather than the possible
• Create a rallying cry for a better brand and customer
experience during onboarding
• Co-create the experience with customers
3.
Map the ideal experience

22. • Identify the kind of content required
• For each touchpoint consider the
customer’s ability to complete the task
and their motivation to complete the task
• Different content types will be more
suited to different customer interactions
4.
Plan your content
*Source: BJ Fogg, Ph.D., Persuasive Technology Lab, Stanford
University (behaviormodel.org)

23. • The route to fixing premachurn does not require
an enterprise-wide transformation initiative
• Even so, the project will lead to multiple
stakeholder engagements
• Be sure to consider those stakeholders’ perspectives,
their likely concerns, and potential motivations
• Involve stakeholders at every step of the project
to build understanding and support
5.
Build internal stakeholder support

24. • Test the new onboarding experience
with customers before you implement
• Testing doesn’t require a fully built experience
• Create a prototype, frame the experience in
as much detail as possible
• Refine experience based on results
6.
Prototype, test, refine

25. 7.
Implement
• Prioritize action areas
• Focus on the most critical
moments of the journey
• Outline and schedule resources
• Develop a clear, tightly defined brief
for each item

26. 8.
Measure and adjust
• Track progress of onboarding customers
• Once implemented some parts will work well,
others less well
• New and unexpected barriers may appear
• Develop new strategies and approaches
to reach those still stuck
• Calculate the increased revenues and cost
savings of the new onboarding process

27. Capture the
lifetime value
of customers
Optimize
marketing
budget
efficiency
Enhance the
reputation of
marketing for
delivering
business value
The outcome
of treating premachurn?
2 31

28. Ariad Communications
www.ariad.ca
P.O. Box 500, Station A
Suite 7C100
Toronto, Ontario M5V 3G7
tel 416-971-9294 | fax 416-971-9292
Mark Michaud
SVP Strategy & Research, Ariad Communications
mmichaud@ariad.ca
@michaudmark
Download the paper
Let’s start the conversation
and get on the road to
fixing premachurn