No, it does not. It is definitely a very important cause, but not the only one.
Optimizing retention after the onboarding stage is finished is a step-by-step procedure. Any stage leading to payment can present its own problems which might drive customers away.
Find the issue, fix it, and you will immediately notice a rise in retention.
For instance, it could happen that the retention level drops dramatically a few weeks after finishing the onboarding. This means your product might not be up to par compared to others on the market.
Or maybe not enough people are reaching the wow moment of your product and getting the best of it. They might be paying for features that they are not even aware of, don’t understand or don’t use.
In the case of the B2B company I was talking about, their product was used for monitoring SEO campaigns. And the wow moment was reached after launching 3 such campaigns. When they reached that ’magic’ number, retention was stabilized at over 25%. Which meant that the best way to keep users onboarded was to get them to launch at least 3 campaigns.
Some of their clients were indeed small businesses that didn’t need three campaigns. So it was not a product issue in this case that needed to be addressed. It was a marketing strategy problem. Some of these companies were simply too small to afford this product or to need using it repeatedly, so they churned.
All in all, it is far more difficult to take the bull by the horns and improve retention if you don’t know what caused the churn problem in the first place.
It all boils down to data analysis. You have to dig deeper and see if you are experiencing an onboarding problem, or if users have a hard time reaching the wow moment or the different goals etc. Know your problem and this will clarify what needs to be done immediately.