It’s easy to view retention as an issue to address after it arises. A customer shows signs of dissatisfaction, prompting the CS team to intervene. Churn surges, leading management to request an analysis. However, by that time, the harm is often already inflicted.
The reality is that many customers begin to move toward the exit long before they even log in for the first time. When the sales pitch and actual product don’t align, users arrive with one expectation and receive something different. Most will not remain to check if improvements occur.
SaaS teams and B2B firms committed to decreasing churn frequently discover that solutions lie further upstream than anticipated. This may involve stricter sales qualifications, improved transitions between teams, or tools like Hopscotch product onboarding software that help synchronize initial expectations with the true product experience.
This article outlines why churn often stems from decisions made prior to the first login and what retention-focused teams can do to address this issue.
Where Does Early Churn Actually Come From?
Churn is seldom linked to a solitary negative experience. More frequently, the foundations are laid during the sales process or even earlier.
Research conducted by Paddle indicates that customers acquired through significant discounts exhibit more than double the churn rates compared to full-price customers. These individuals either weren’t the ideal fit initially or they’ve been conditioned to undervalue the product from the outset. Ortto highlights a similar trend: early-stage churn frequently initiates before the individual has even become a customer.
Source: Paddle
Source: Ortto
The recurring theme is a discrepancy between customer expectations and their actual experiences. This disconnect can develop during marketing, sales, or the silent period between signing and setup. By the time onboarding commences, the harm is frequently already done.
How to Reduce Churn Before Onboarding Begins
The encouraging news is that early churn can be avoided. It merely necessitates attention earlier in the customer journey than most teams typically provide.
Qualify for fit, not just revenue
Not every lead merits a closing. Yet, as quotas approach, it’s tempting to finalize deals even when the fit appears incorrect.
Teams that prioritize fit during sales generally end up with customers who remain loyal. This requires asking more challenging questions early: Does this customer face a problem the product can genuinely resolve? Do they possess the internal resources for proper implementation? Is their timeline realistic?
Sometimes the wisest choice is to walk away from a deal that appears promising on paper but doesn’t align with the product’s strengths. Short-term revenue holds little value if the customer disengages within 90 days.
Align messaging across teams
When marketing, sales, and product teams work from the same playbook, customers receive a unified experience. The value promised aligns with the value delivered.
Misalignment in this area can cause rapid early churn, as customers may feel deceived even when no intention to mislead exists. Perhaps marketing highlighted a feature still in beta, or sales oversold a use case that the product only partially supports. These discrepancies are rare cases of intent but can swiftly erode trust.
Regular synchronization among teams, shared documentation on positioning, and a clear definition of the ideal customer profile all contribute to maintaining tight messaging. The objective is to ensure that everyone conveys the same narrative.
Communicate during the pre-boarding window
The most effective onboarding experiences commence before the first day.
A welcome email, a brief video, or a quick call during the period between signing and setup can establish expectations and keep new customers engaged. This period is also ideal for collecting context that