This "5 Why" analysis shows how customer churn is an enterprise-wide problem for cloud computing companies. Managers can use this diagram to generate hypotheses about what causes churn in their organizations and then collect data (qualitative and quantitative) from defecting customers to test hypotheses. This diagnostic approach helps uncover and address "root causes," leading to reduced churn and higher customer loyalty.

1. Bad First Impression
Limited/No Contact
Switch
Providers
Lack Strong
Relationship
Easy to Switch
Not Meeting
Expectations
Lack of
Value
Lack of
Quality
Need Went
Away
Why Do
Customers
Churn?
Poor Value
Proposition
Bad Market Validation
Bad Idea
Better Competitors
Not Getting
Results
Too Costly
Over-Promised
Wrong Customer
Wrong/Limited Usage
Limited Capability
Slow Response Time
Bugs/Poor Reliability
Bad User Experience
Data/Security Issues
Poor Customer Service
SaaS Company
Customer Churn
“5 Why” Diagram
April 2014
Bad Contract
Experience
No
Attachment Impersonal Contact
Personality Conflict
Bad Design
Low Org. Impact
Low Complexity
Low Cost
Low Social Impact
Mkt./Prod./Strat. Shift
Company Mandate
Cost-Cutting/Bankruptcy
Left Company
Disability/Death
Business Change
Personal Change
Product Def.
Market Def.
Product Dev.
Targeting
Deployment
Messaging
DevOps
Software Qual.
Service Qual./UX
Onboarding
Contact Mgt.
Uncontrollable:
Competition
Technology
Cust. Business
Customers
Improve:
Billing Issues
Accts. Rec.
se-partners.com
Sales Qual.