Customer onboarding is a necessary evil:
Some stats to build the case for customer onboarding and why companies must invest in it:
· According to a study by Totango, companies that have a structured onboarding process see a 91% higher retention rate in the first 90 days compared to those that don't.
· A study by Deloitte found that companies with strong onboarding programs have a 60% higher retention rate in the first year.
· A survey by Capterra found that 77% of customers said a good onboarding experience is important to their decision to continue using a product.
· A study by the Aberdeen Group found that companies with a structured onboarding process saw a 50% reduction in onboarding time and a 25% increase in adoption in the first 90 days.
· A study by Forrester Research found that companies that invest in customer onboarding see a 37% increase in annual revenue per customer.
These statistics demonstrate the significant impact that customer onboarding can have on customer retention, product adoption, and revenue growth in the SaaS industry.
What is customer onboarding and why is it so important?
Customer onboarding is the process of introducing a new customer to your product or service and helping them get started with it. It is important because it helps to ensure that customers get value from your product and are able to use it effectively.
Here are a few reasons why customer onboarding is important:
· It helps customers get started quickly: A well-designed onboarding process can help customers get up and running with your product quickly, reducing the time it takes for them to start seeing value.
· It increases customer retention: A good onboarding experience can help engage and retain customers, leading to a lower churn rate.
· It boosts product adoption: An effective onboarding process can help customers understand and utilize key features of your product, leading to higher product adoption.
· It improves customer satisfaction: A seamless onboarding experience can lead to higher customer satisfaction and a better overall customer experience.
· It drives revenue growth: By helping customers get value from your product and ensuring their success, customer onboarding can drive revenue growth through increased customer retention and expansion.
Customer onboarding best practices:
· Make the onboarding process as seamless as possible: Use automation and self-service tools to streamline the process and reduce the need for manual intervention.
· Use a variety of media to communicate with customers: This can include emails, in-app messages, video tutorials, and webinars.
· Personalize the onboarding experience: Use customer data to tailor the onboarding process to each individual's needs and preferences.
· Set clear expectations: Let customers know what they can expect during the onboarding process, including how long it will take and what they need to do to get started.
· Offer ongoing support: Provide customers with access to support resources such as FAQs, knowledge bases, and customer service representatives to help them get the most out of your product.
· Use metrics to measure the effectiveness of your onboarding process: Track key metrics such as customer retention and usage to see how well your onboarding process is working.
Steps involved in the customer onboarding process (The onboarding playbook):
· Sign-up and account creation: Customers sign up for your product and create their accounts. This is typically done through a web form or by downloading and installing the product.
· Welcome and onboarding emails: Send customers welcome emails and other onboarding communications to introduce them to your product and help them get started.
· Product tour: Provide customers with a tour of your product, highlighting its key features and benefits. This can be done through in-app messaging, video tutorials, or other means.
· Data import and setup: Help customers import their data into your product and set it up for use. This might involve connecting to external systems or configuring product settings.
· Training and onboarding resources: Provide customers with access to training materials and other resources to help them learn how to use your product effectively.
· Ongoing support and engagement: Offer ongoing support and engagement to help customers get the most out of your product. This can include things like customer success managers, in-app messaging, and regular check-ins.
· Measurement and optimization: Use metrics to measure the effectiveness of your onboarding process and make improvements as needed. This can include tracking things like customer retention and usage.
Different onboarding models:
· Self-service onboarding: This model relies on automation and self-service tools to guide customers through the onboarding process. Customers are provided with the necessary resources and support to get started with the product on their own.
· Assisted onboarding: This model involves a more hands-on approach, with customer success managers or other support staff guiding customers through the onboarding process. This model is typically used for more complex products or for customers who require more support.
· White-gloved onboarding: In this model, a dedicated team is assigned to each new customer to provide a highly personalized onboarding experience. This is typically used for high-value customers or for products with a long sales cycle.
· Hybrid onboarding: This model combines elements of self-service and assisted onboarding, allowing customers to choose the level of support they need.
· Continuous onboarding: This model involves ongoing support and engagement throughout the customer lifecycle to help customers get the most out of the product.
Onboarding by customer segments:
In a SaaS product, customer onboarding can be tailored to different customer segments based on their needs and preferences. Here are some examples of how customer onboarding can be customized for different segments:
· Small businesses: Small businesses may need more support and guidance during the onboarding process, as they may not have the resources or expertise to get up and running quickly. Providing access to customer success managers and training materials can be helpful.
· Enterprises: Enterprise customers may have more complex needs and require a more customized onboarding process. This could involve a dedicated team to guide them through the process and help them integrate the product into their existing systems and processes.
· First-time users: First-time users may need more help getting started with your product, so providing a comprehensive product tour and access to training resources can be helpful.
· Experienced users: Experienced users may need less guidance during onboarding and may prefer to explore the product on their own. Providing self-service resources and allowing them to move at their own pace can be effective.
· High-value customers: High-value customers may warrant a more personalized onboarding experience, such as a concierge onboarding model. This could involve a dedicated team to help them get set up and ensure their success with the product.
The customer onboarding strategy:
Here are some factors to consider when developing a customer onboarding strategy:
· Identify your target audience: Understanding the needs and preferences of your target audience will help you tailor your onboarding strategy to their specific needs.
· Determine your onboarding goals: Clearly define your goals for the onboarding process, such as reducing time to value, increasing customer retention, or increasing product adoption.
· Choose the right onboarding model: Select the onboarding model that is most appropriate for your business and target audience. Options include self-service, assisted, concierge, hybrid, and continuous onboarding.
· Create a seamless onboarding experience: Use automation and self-service tools to streamline the onboarding process and reduce the need for manual intervention.
· Personalize the onboarding experience: Use customer data to tailor the onboarding process to each individual's needs and preferences.
· Set clear expectations: Let customers know what they can expect during the onboarding process, including how long it will take and what they need to do to get started.
· Offer ongoing support: Provide customers with access to support resources such as FAQs, knowledge bases, and customer service representatives to help them get the most out of your product.
· Use metrics to measure the effectiveness of your onboarding process: Track key metrics such as customer retention and usage to see how well your onboarding process is working.
Onboarding KPIs used to measure the effectiveness of the customer onboarding process:
· Time to value: This measures how long it takes for a customer to get value from your product. A shorter time to value can indicate that your onboarding process is effective at helping customers get up and running quickly.
· Customer retention: This measures the percentage of customers who continue to use your product after the onboarding process. A high customer retention rate can indicate that your onboarding process is successful at engaging and retaining customers.
· Product adoption: This measures the percentage of customers who are using key features of your product. A high product adoption rate can indicate that your onboarding process is effective at helping customers understand and utilize your product.
· Customer satisfaction: This measures how satisfied customers are with the onboarding process. A high customer satisfaction rate can indicate that your onboarding process is meeting the needs of your customers.
· Cost per customer: This measures the cost of onboarding each new customer. A lower cost per customer can indicate that your onboarding process is efficient and cost-effective.
· Revenue per customer: This measures the amount of revenue generated by each customer over time. A higher revenue per customer can indicate that your onboarding process is successful at helping customers get value from your product.
· Completion Rate: This measures the number of customers who start the onboarding process those how many complete the process.
· Completion Time: This measures the time it takes for the onboarding to be completed.
Usual customer onboarding pitfalls:
Here are some common pitfalls to avoid during customer success onboarding:
· Lacks personalization: Failing to tailor the onboarding experience to the specific needs and preferences of each customer can lead to a poor onboarding experience.
· Complex onboarding process: A complex or confusing onboarding process can be frustrating for customers and lead to a high drop-off rate.
· Lack of support: Failing to provide adequate support during the onboarding process can leave customers feeling frustrated and unsupported.
· Insufficient training: Not providing enough training and resources to help customers learn how to use your product effectively can lead to low adoption and retention.
· Poor communication: Failing to communicate effectively with customers during the onboarding process can lead to confusion and a poor onboarding experience.
· Lack of metrics and measurement: Failing to track key metrics and measure the effectiveness of your onboarding process can make it difficult to identify areas for improvement.
By avoiding these pitfalls, you can ensure a smooth and successful customer onboarding experience.
7 Customer onboarding software:
1. ChurnZero: A customer success and retention platform that helps businesses streamline and automate the onboarding process.
2. Gainsight: A customer success management platform that includes tools for onboarding, customer success planning, and analytics.
3. Totango: A customer success platform that includes tools for onboarding, customer health tracking, and engagement.
4. ClientSuccess: A customer success platform that helps businesses automate and optimize the onboarding process.
5. UserTesting: A platform for testing and optimizing user experiences, including the onboarding process.
6. Userlane: A platform that helps businesses create interactive guides and walkthroughs to streamline the onboarding process.
7. Appcues: A platform that helps businesses create and optimize onboarding experiences through in-app messaging and interactive guides.
Before we end it’s important to understand that Onboarding is different from implementation:
Customer success onboarding is the process of introducing a new customer to your product or service and helping them get started with it. It typically includes things like welcome emails, product tours, training materials, and support resources.
Implementation, on the other hand, refers to the process of installing and configuring your product or service for use by the customer. This can include tasks such as data import and setup, integrations with other systems, and customization of product settings.
In other words, customer success onboarding is focused on helping customers understand and get value from your product, while implementation is focused on getting the product set up and configured for use.
While these processes may overlap to some extent, it is important to distinguish between them and address each one separately to ensure a smooth and successful customer experience.
Pro tip: Create a Customer Onboarding Checklist