Five Whys to Combat High Churn in B2B Payment Platforms
The Five Whys framework—a straightforward approach originally developed by Toyota in the manufacturing world—can be surprisingly powerful for understanding and addressing complex user experience (UX) problems in B2B payments. By repeatedly asking “Why?”, we don’t just scratch the surface but reveal core issues that drive user behavior, whether that’s satisfaction, frustration, or, in this case, high churn.
To show how this framework can unlock actionable insights, let’s dive into a real issue that payment platform providers often face: high churn rates following onboarding. It’s a problem that can put serious pressure on business growth, yet, with the right tools, it’s also highly solvable.
The Problem: High Churn Post-Onboarding
It’s a frustrating moment for many payments executives: after significant investments in acquisition and marketing, a flood of new users sign up. But shortly after onboarding, many of them disappear. This high churn rate following onboarding is more than a minor pain point—it’s a critical business issue.
The churn represents not only lost revenue but also wasted resources spent attracting users who ultimately don’t stick around. So, what’s happening here, and more importantly, why?
Step 1: Asking “Why?” the First Time
The first step is identifying the core symptom: high user churn after onboarding. We then ask the first “Why?” to start uncovering the reasons behind this behavior.
Why #1: Why are users churning post-onboarding?
Answer: They’re frustrated with the complexity of the onboarding flow.
This is a common issue in B2B payment platforms. A Visa study found that nearly 70% of users are likely to abandon onboarding if they encounter friction in the first three minutes.
For payment solutions, onboarding is often dense, involving forms, verifications, and approvals that can quickly overwhelm users. In this case, users churn not because they lack interest, but because they’ve encountered a series of frustrating barriers.
UX Insight: Simplify initial interactions. Identify where users experience friction during onboarding.
Step 2: Digging Deeper
With the first layer exposed, it’s time for the next “Why.”
Why #2: Why is the onboarding flow complex?
Answer: Users must complete numerous forms, sometimes leading to errors and abandonment.
B2B payments platforms typically need a wealth of information upfront due to regulatory, financial, and operational requirements, particularly under Know Your Business (KYB) regulations.
This necessity for thorough vetting can create friction during the onboarding process, leading to potential issues such as user abandonment and increased churn rates
Each form or document is another hurdle; together, they create a marathon that users have to complete before they can even start benefiting from the platform. Worse, extensive forms are prone to errors, creating bottlenecks that further discourage users.
UX Insight: Reevaluate which steps in onboarding truly need completion right away. Where can information be gathered later, once users are more engaged?
Step 3: Continuing Down the Path
With the complexity of the onboarding flow identified, let’s ask the next “Why.”
Why #3: Why are there so many forms?
Answer: Legal and compliance requirements necessitate extensive information gathering.
Compliance and legal requirements often call for thorough documentation, risk assessments, and identity verification processes. Each step is essential for regulatory standards, but when bundled together, they contribute significantly to onboarding churn. These requirements are often non-negotiable, making them a critical challenge.
UX Insight: Distinguish between what’s necessary for compliance and what’s merely “nice to have.” Simplify wherever possible, but understand regulatory priorities.
Step 4: The Fourth “Why” Examines the Process
With compliance as a key factor, the next question digs into how the onboarding process is structured.
Why #4: Why is all information gathered at once?
Answer: The system isn’t set up to allow phased or conditional onboarding.
This answer exposes a major limitation in the platform’s design. Rather than collecting information progressively, onboarding is treated as a single exhaustive task.
This structure may come from a well-meaning attempt to “get everything done” up front, but it overwhelms users by asking too much at once. Instead, platforms can benefit from phased or conditional onboarding—starting with essential information and allowing users to complete additional details later.
UX Insight: Look at onboarding as a phased journey. Consider a progressive disclosure approach that prioritizes initial key steps and introduces additional requirements gradually.
Step 5: The Final “Why” to Reveal the Core UX Problem
We’re now at the fifth “Why,” which often brings us closest to the true root cause.
Why #5: Why hasn’t a phased approach been adopted?
Answer: The payment solution was designed for compliance rather than a smooth user experience, leaving no room for phased interactions.
In the pursuit of compliance, user experience was sidelined. This happens often in B2B payments, where regulatory requirements are extensive and complex. The product team was likely given a mandate to prioritize compliance above all, without considering how these requirements could be integrated in a user-friendly way.
UX Insight: Shift the mindset from compliance-first to user-first within the bounds of compliance. By designing with UX as a priority, compliance can still be achieved in a way that’s easier and more intuitive for the user.
Root Cause: Compliance-Focused Platform That Sacrificed Usability
In this scenario, we’ve identified that a compliance-driven onboarding approach is overwhelming users, causing high post-onboarding churn. The one-time, exhaustive onboarding structure is far too rigid for users who want quick, straightforward access to services.
The solution isn’t to compromise on compliance but rather to design a more user-centered, phased onboarding experience.
Solution: Implement a Phased Onboarding Process
With the root cause in mind, a phased onboarding process becomes a clear solution. This approach balances compliance needs with user expectations by introducing a series of manageable steps that build user confidence and minimize overwhelm. Here’s how it might look:
- Essential Setup First: Start with minimal information—enough to allow users to start engaging with the platform immediately.
- Deferred Compliance Steps: Separate advanced information-gathering steps from the initial signup, prompting users to complete these when they’re more familiar with the platform.
- In-Product Nudges: Use in-product prompts to gather remaining details as users begin using core features, making it a natural extension of their engagement rather than an entry barrier.
Setting Metrics to Measure Success
Improving onboarding requires measurement. The following metrics can indicate whether the changes have an impact:
- Churn Rate Post-Onboarding: Measure churn within 30 days of onboarding. A reduction in this metric shows a positive shift.
- Form Completion Time and Error Rate: Track how long users spend on each form screen and note errors. This data can pinpoint bottlenecks and guide further improvements.
- Engagement and Feature Adoption: Track how users engage with the platform after onboarding to confirm they’re moving smoothly through the phased steps.
Key Takeaways for Payment Leaders
- Examine User Journeys with the Five Whys: A structured framework like the Five Whys can highlight hidden issues within the user journey, enabling a data-driven approach to solving them.
- Consider Compliance and User Experience as Partners, Not Competitors: Compliance is non-negotiable, but it can be integrated thoughtfully. When UX and compliance work together, the result is a platform that’s secure, compliant, and user-friendly.
- Measure What Matters: Metrics like churn, form completion rates, and engagement tell a story about user experience. Without these, it’s impossible to gauge the real impact of UX improvements.
- Phased Onboarding for the Win: Instead of asking users to complete everything up front, design onboarding as a progressive journey that prioritizes essential actions first, then introduces additional steps as users become more familiar with the platform.
WDIR, Your Partner in Seamless B2B Payment UX
Every payment platform faces challenges, but understanding and addressing the “Whys” can unlock growth potential. If high churn, onboarding friction, or user abandonment sounds familiar, it’s time to take action. Consider partnering up with WDIR, the leading UX agency in B2B payments. We're trusted by leading financial institutions and innovative fintechs to create seamless, intuitive, and secure payment experiences.
