Mandatory: for each churning product, at least one complete classification (Category + Churn Reason + Detail Reason Code) must be entered before closure. Primary and Secondary reasons are entered by the Back Office team in Salesforce (line item > Churn Information) and are then visible in ChurnZero (line item > Churn Classification - Primary and Secondary causes). Contributing Factors and the Churn Causes - Extended Info field are ChurnZero-only and can be edited directly by the CSM to add context to each churn analysed (line item > Churn Classification - Contributing Factors / Churn Classification - Primary and Secondary causes). Incomplete classifications block closure and distort reporting.
How to classify
Three-level classification
Level 1 - Category
Churn Category
The broad area responsible for the churn. Maps to a MotorK department or external factor. Select the one that best represents the primary driver.
e.g. Product, Customer Relationship, Pricing & Value
Level 2 - Reason
Churn Reason
A sub-area within the category that narrows the scope. Groups related Detail Reason Codes together under a shared theme.
e.g. Lack of Integrations, Support Issues, Pricing
Level 3 - Detail Code
Detail Reason Code
The specific root cause. Pre-classified as Internal or External. This is the field you select in ChurnZero. Always add context in the Extended Information field.
e.g. Integration Failure, Slow Support Response, Price Too High vs ROI
Internal vs External
Internal
MotorK Caused
Churn attributable to a MotorK error, gap, failure, or behaviour. An identifiable root cause exists with a responsible department that can take action. Most Detail Reason Codes are Internal.
Multiple Internal reasons can co-exist in one churn.
External
Outside MotorK's Control
Churn caused by factors outside MotorK's control. MotorK delivered correctly. Does not include situations where proactive intervention could have saved the client.
If you select an External code, it is expected to be the sole reason.
Classification rules
Primary, Secondary & Contributing
Primary
Primary Churn Reason
Mandatory for every churning product. The necessary cause, if this problem had not existed, would the customer have renewed? Anchor your choice to the customer's own words in the formal notice, Gong meeting, or BCK note. The primary reason is almost always named explicitly in those sources.
"If this problem had not existed, would the customer have renewed?"
Secondary
Secondary Churn Reason
Optional. A second significant factor that would have caused serious damage even without the primary. If it only amplifies the primary rather than standing on its own, it belongs in Contributing instead.
"Would this second problem have caused significant damage even without the primary?"
Contributing Factors
Contributing Factor 1 & 2
Optional. Everything else that is visible in the account history but not autonomous enough to be a standalone reason. Use these to add depth and granularity when relevant, up to two contributing factors per product.
Everything surfaced in the account but not strong enough to stand alone.
Where to find the fields
Field locations
| Field | Where | |
|---|---|---|
| Primary |
Salesforce Line item > Churn Information ChurnZero Line item > Churn Classification - Primary and Secondary causes |
Required |
| Secondary |
Salesforce Line item > Churn Information ChurnZero Line item > Churn Classification - Primary and Secondary causes |
Optional |
| Contributing 1 & 2 | ChurnZero Line item > Churn Classification - Contributing Factors | Optional |
| Churn Causes - Extended Info | ChurnZero Line item > Churn Classification - Primary and Secondary causes | Optional* |
*Required for Primary and Secondary when present. Primary and Secondary are entered in Salesforce and sync to ChurnZero. Contributing Factors and Churn Causes - Extended Info are ChurnZero-only, editable by the CSM.
Category 1
Billing
Finance & Back Office
ReasonCompany Change
Detail Reason CodeDescription / When to useSignal / Products
Billing Entity Change External
The customer's legal entity changed - e.g. merger, acquisition, or corporate restructuring - requiring a new contract. MotorK is not at fault.
Group brings own billing structure; M&A with entity name change
External - expect sole reason
ReasonConsistent Billing Issues
Detail Reason CodeDescription / When to useSignal / Products
MotorK Invoicing Internal
Recurring errors in MotorK invoices: wrong amounts, delays, misapplied credits. Creates distrust and payment disputes.
Invoice dispute; finance team complaints; repeated billing corrections
All products
Category 2
Product
Product · Engineering · Delivery
ReasonUndelivered
Detail Reason CodeDescription / When to useSignal / Products
Onboarding Too Slow Internal
Onboarding phase failed to meet expectations - either go-live was delayed or required training was not delivered on time. Both delay and missing early training fall under this code. Use Extended Information to specify which factor(s) applied.
SLA on go-live exceeded; training not delivered during onboarding window; customer lost momentum
0-90 days from signature
Go-Live Beyond Agreed Timeline Internal
Go-live date not met relative to expectations set during delivery - whether contractual or communicated informally. Note: responsibility may be shared with the client (e.g. slow data provision, delayed approvals). Always detail the exact causes in the Extended Information field of the churn.
Delivery milestone missed; shared responsibility possible - document causes in Extended Information
Pre Go-Live
ReasonLack of Integrations
Detail Reason CodeDescription / When to useSignal / Products
Integration Failure Internal
Failed integration with DMS, OEM APIs, or third-party systems. Data sync broken, manual workarounds required.
Data sync broken; manual workarounds required
WebSparK · LeadSparK · StockSparK
Data Migration Errors Internal
Data migrated incorrectly or partially lost. Trust broken early; data integrity compromised.
Trust broken early; data integrity compromised
Onboarding phase
Competitor: Native System Integration Internal
Competitor has out-of-the-box integration with OEM or essential systems (DMS, etc.) that MotorK lacks. Integration advantage is decisive.
Competitor chosen specifically for DMS/OEM native integration
StockSparK · AdSparK · WebSparK
3rd Party Failure External
Integration failed due to a third-party (non-MotorK) system or provider. MotorK's side functioned correctly. This includes both technical failures (outage, API change) and non-technical ones such as poor collaboration or excessively long response times from the partner.
Partner outage, API change, poor collaboration, or long partner response times - outside MotorK's control
External - expect sole reason
ReasonProduct Feature Not Working
Detail Reason CodeDescription / When to useSignal / Products
Feature Gap Internal
Expected functionality is not present in the product. Log the specific missing module.
Log specific feature name and business impact
All products
Poor UX / Usability Internal
Interface is difficult, unintuitive, or creates high training burden. Low adoption.
High support ticket volume on UX; low adoption rates
All products
Competitor: Better Product Internal
Competitor offers features MotorK lacks. Log competitor name + specific gap.
Log competitor name + specific gap for Product team
All - log case by case
ReasonLack of Training
Detail Reason CodeDescription / When to useSignal / Products
Insufficient Training Internal
Dealer team does not know how to use the product adequately. Use Extended Information to specify: (a) whether all contracted training was delivered and proved insufficient for the client, or (b) whether training was partially or fully not delivered, leaving the customer at a disadvantage. The distinction matters for Delivery and CS accountability.
Low login frequency; high support tickets; "we never learned how" - specify in Extended Information if training was fully or partially delivered
Post Go-Live 0-30 days
ReasonOverall Product Performance Issue
Detail Reason CodeDescription / When to useSignal / Products
Bug / Instability Internal
Recurring technical errors, crashes, or unexpected behaviour. Reproducible or reported defects.
Open bug tickets; reproducible defects
All products
Performance / Speed Internal
Slow loading times, unacceptable latency. UX degradation due to response time.
Load time complaints; UX degradation
WebSparK · LeadSparK
No ROI Demonstrated Internal
Product does not generate measurable value - MotorK never showed concrete results. No data-driven QBR; value invisible to customer.
"I do not see the results" - no data-driven QBR ever held
PredictSparK · FidSparK · CallSparK
Mobile App Issues Internal
Mobile app broken, missing key workflows, or absent entirely.
Key workflows unavailable on mobile; app crashes
LeadSparK · StockSparK
Product Unavailability / Downtime Internal
Frequent or prolonged service interruptions. SLA impacted, customer cannot operate.
SLA breached; customer cannot operate during business hours
WebSparK · LeadSparK · StockSparK
ReasonCross-Product Impact
Detail Reason CodeDescription / When to useSignal / Products
Cross-Product Dissatisfaction Spillover Internal
Churn triggered by dissatisfaction with another MotorK product, resulting in loss of trust in the overall MotorK ecosystem.
Dissatisfaction with Product A triggers churn of Product B
All products
Add-on Churned Due to Main Product Churn Internal
Add-on or secondary product churned as a direct consequence of the main product churning - not due to standalone dissatisfaction. The examples below are illustrative only; apply the logic to any add-on or secondary product that has no independent reason to churn.
e.g. StockSparK App churns because StockSparK churns; cookie widget churns because WebSparK churns - apply logic to any dependent product
Add-ons · Secondary products
ReasonDeprecated MotorK Product
Detail Reason CodeDescription / When to useSignal / Products
Product Deprecated Internal
MotorK has discontinued or sunset this product. The product is being phased out - either replaced by a newer solution or discontinued.
Product announced as end-of-life by MotorK
Add-ons · Secondary products
Forced Migration (Legacy) Internal
Customer is on a legacy version being sunset. Migration to new stack was not smooth or accepted.
Legacy platform sunset; customer unwilling or unable to migrate
Legacy products
Category 3
Contractual Changes
Finance & Back Office · Legal
ReasonCompany Closure
Detail Reason CodeDescription / When to useSignal / Products
Dealer Closed, POS Closure External
Bankruptcy, retirement, or ceased operations. Dealer permanently closes down.
Family-owned dealership closing; market crisis; retirement
External - expect sole reason
ReasonProduct Change
Detail Reason CodeDescription / When to useSignal / Products
Re-contractualization Internal
Customer re-contracts under different terms - e.g. switching product tier or bundle - resulting in a churn of the original contract.
Customer downscales or restructures contract; bundle change
All products
ReasonDealership Network Exit
Detail Reason CodeDescription / When to useSignal / Products
Market / Regulatory External
Regulatory change, market exit, or franchise loss forces the churn. This also applies when a MotorK product does not comply with country-specific regulations (e.g. GDPR, local data residency, or sectoral rules), making continued use legally or commercially impossible for the dealer.
Dealer loses OEM licence; market exit; local regulation change; MotorK product non-compliant with country-specific rules
External - expect sole reason
ReasonService Discontinue
Detail Reason CodeDescription / When to useSignal / Products
Dealer Discontinued Product Line External
Dealer voluntarily exits a specific business line, making the product irrelevant for that activity.
Dealer closes rental division; exits fleet management; discontinues a product segment the tool was purchased for
External - expect sole reason
ReasonCompany Acquisition
Detail Reason CodeDescription / When to useSignal / Products
M&A / Ownership Change External
Dealer acquired by a group imposing different software. New owner brings own tech stack.
Group acquisition; merger; new owner imposes group CRM/DWS
External - expect sole reason
Category 4
Agreements
Finance & Back Office · CS · Legal
ReasonNatural Closure - MotorK Issue
Detail Reason CodeDescription / When to useSignal / Products
Contract Inflexibility Internal
Contract does not allow necessary adjustments. Customer needs to downsize, restructure, or modify payment terms but MotorK's contractual conditions are rigid - including inflexible payment schedules or inability to adapt instalment frequency.
Downsize request refused; volume locked; inflexible payment terms or instalment schedule
All products
SLA Breach Internal
MotorK violated contracted service levels. A contractual obligation was not met.
Contractual SLA missed; customer exercises exit clause
All products
ReasonNatural Closure - Customer Issue (contract reached natural end of term)
Detail Reason CodeDescription / When to useSignal / Products
Customer Regulatory Constraint External
Customer faces regulatory pressure preventing continuation of the contract. Not MotorK's fault.
GDPR ruling; country-specific regulation blocking product use
External - expect sole reason
Customer Insolvency / Financial Distress External
Customer is insolvent or in severe financial distress. No budget to continue regardless of product value.
Bankruptcy filing; receivership; verified severe financial distress
External - expect sole reason
ReasonNo Tacit Renewal
Detail Reason CodeDescription / When to useSignal / Products
Non-recurring Product External
Product was sold as a one-time or project-based engagement, not a recurring subscription. No renewal was expected.
One-time implementation or campaign; no recurring contract
External - expect sole reason
Category 5
Customer Relationship
Customer Success · Support
ReasonSales Support
Detail Reason CodeDescription / When to useSignal / Products
CSM Not Proactive Internal
Only reactive contact; no proactive outreach. Customer feels unsupported between problems.
"We had not spoken in months" - S2+ with no touchpoint > 60 days
Full customer lifetime
No QBR / Business Review Internal
No formal results review ever held. Value never demonstrated; relationship never deepened.
S2+ account with zero QBRs in full contract history
Full customer lifetime
Stakeholder Not Managed Internal
Contact change at dealer not caught; new contact not onboarded. New decision-maker has no relationship with MotorK.
Churn following turnover of client contact; new champion not identified
Full customer lifetime
Renewal Handled Too Late Internal
Renewal discussed less than 30 days before expiry. No runway to negotiate or address concerns.
"I have already signed with someone else" - renewal conversation started too late
Renewal phase
High CSM Turnover Internal
Customer changed CSM multiple times. Lost relational continuity; trust must be rebuilt repeatedly.
"I do not know who my contact is" - 3+ CSM changes in 12 months
Full customer lifetime
No Post-Sale Follow-Up Internal
No proper Sales-to-CSM handover after signing. Sales should introduce the assigned CSM to the customer shortly after contract signature - if this step is skipped, the customer starts without a named contact and MotorK's ownership is never established. Primary accountability: Sales.
Churn within first 6 months; customer reports no point of contact post-signature; no formal Sales-CSM introduction made
0-90 days from signature
ReasonSupport Issues
Detail Reason CodeDescription / When to useSignal / Products
Slow Support Response Internal
Tickets not handled within SLA; long response times. Perceived abandonment; escalation to churn.
Support SLA missed; customer escalates to CSM or management
Full customer lifetime
Issue Not Resolved Internal
Open problem for weeks/months without resolution. Chronic frustration; trust erosion.
Same ticket re-opened multiple times; issue open > 30 days
Full customer lifetime
Competitor: Better Support / Service Internal
Competitor has local CSMs, faster response times, or higher perceived reactivity.
Customer mentions competitor CSM model or response speed during exit conversation
All products
Category 6
Pricing & Value
CS · Finance · Sales
ReasonPricing
Detail Reason CodeDescription / When to useSignal / Products
Price Too High vs ROI Internal
Customer does not perceive enough value for the cost. Value gap: cost outweighs perceived benefit.
Low NPS + "too expensive" + regular usage - value not communicated
All products
Hidden Costs / Unexpected Add-Ons Internal
Extras not disclosed at signing. Surprise billing erodes trust.
Invoice dispute; surprise at renewal; "I did not know this was extra"
All products
Usage Too Low to Justify Cost Internal
Customer does not use the product enough. Low adoption making cost feel unjustifiable.
Login frequency below threshold for 60+ days; low feature activation
All products
Competitor: Better Price Internal
Competitor made a more competitive offer. Log competitor name + price delta.
Log competitor name + price delta for Sales/Finance review
All - log case by case
Discount Withdrawn Internal
Previous discount not renewed; increase felt as punitive. Customer perceives penalty for loyalty.
Churn at renewal with new full price; customer references previous discount
All products
Price Increase Internal
MotorK applied a price increase not accepted by the customer.
Customer refuses renewal after price increase notification
All products
ReasonMis-Sell / Expectation Gap
Detail Reason CodeDescription / When to useSignal / Products
Oversold Expectations Internal
Sales promised non-existent features or unrealistic timelines. Gap between sold promise and delivered product.
"They told me I could do X" - low NPS from Month 1
0-6 months from signature
Wrong Product Sold Internal
Customer had different needs; product was not a fit. Discovery was insufficient or misrepresented.
"It does not do what I need" - low usage from day one
0-6 months from signature
Use Case Mismatch Internal
Product exists but not for this dealer type or market. Product scope does not match the customer's workflow.
"It does not fit our process" - product used in unintended context
0-6 months from signature
Category 7
HQ & External Decisions
External - no MotorK root cause
ReasonHQ Decision
Detail Reason CodeDescription / When to useSignal / Products
Group / Owner Decision External
A decision imposed at group or ownership level - not by the individual dealer. The dealer has no autonomy in the choice. Covers acquisition, merger, and any situation where the group/HQ mandates a different technology or vendor.
Group mandate after acquisition; new ownership imposes group CRM/DWS; HQ technology standardisation
External - expect sole reason
OEM Mandate External
OEM mandates a specific platform. Dealer has no choice regardless of satisfaction with MotorK.
OEM mandatory platform rollout; country-specific OEM programme
External - expect sole reason
Genuine Budget Cut External
Verified financial hardship at group level, unrelated to perceived value of the product. Often driven by broader automotive market conditions (e.g. market downturn, OEM production cuts, electrification transition costs) rather than dissatisfaction with MotorK.
Automotive market downturn; OEM cuts impacting dealer revenue; structural group-level cost reduction
External - expect sole reason
ReasonVoluntary Downsizing
Detail Reason CodeDescription / When to useSignal / Products
Less Rooftops Needed External
Dealer network voluntarily downsizes - closes branches or reduces footprint. Fewer sites need the product.
Dealer closes branches; network reduction programme
External - expect sole reason
Less Licenses Needed External
Dealer retains all rooftops but needs fewer seats/licences - headcount reduction or restructuring.
Headcount reduction; team restructuring reduces licence need
External - expect sole reason
CLASSIFY A CHURN
Use the Churn Classification Form to submit a classification to back office. The form opens pre-filled with account and product data when accessed from the ChurnZero task email. You can also open it manually and fill in all fields.
The pre-filled link is sent automatically via ChurnZero when a churn notice is logged. Open the form manually only if you did not receive the email.