Sunday, November 27, 2022

Why User Onboarding Is So Crucial For Your Growth Strategy on SaaS


The statistics never lie: User onboarding is the most crucial aspect of the customer experience since it sets the tone for everything that follows.

Let us face it! Approximately 90% of applications are downloaded to a smartphone, launched once, and never used again. It is not that 90 percent of applications are worthless; it is that the onboarding process is excessively complicated. When a user encounters a blockade, they may conclude it is not worth overcoming.

Therefore, the most complicated problem for a product owner is user retention. Even the first-rate programs are subject to churn. In order to get users hooked, you must be both proactive and strategic.

User acquisition and retention are critical for Software as a Service (SaaS) products. It would be absurd to expect to retain every user that meets your product since there will always be users who cannot be customers.

The causes for user turnover vary. While some of these causes are beyond your control, others are within them. We would like to introduce you to one of those within your control: User Onboarding.

While an outstanding user onboarding experience reduces churned people, average or poor user onboarding leads you to lose a large number of potential clients. You will have a better idea of why this is the case at the conclusion of this post.

What Is User Onboarding?

A user onboarding method assists your consumers in obtaining value from your product. This includes any actions, materials, and methods that you as a SaaS creator may utilize.

We recently interviewed Smash Cloud, a top software development and design company, to understand their thoughts on user onboarding journeys. A senior UX designer at the company shared, “User onboarding is not about getting people credentials to access the software, instead it is an opportunity to inform, educate and enable your customer – they are here to solve a problem, helping them move faster to that solution is what a good onboarding experience is about.”

For years, the team has been assisting SaaS owners in improving their user onboarding.

We curated a list of things any founder should know regarding user onboarding.

Here are some KPIs that one must consider to determine if the user onboarding will meet the expectations or not.

·         Churn Rate

·         Completion Rate

·         Completion Time

·         Daily Active Users

·         Time to Value

·         Usage Time

You should monitor user onboarding with KPIs and analytics to determine whether it is working properly. Consequently, rather than depending on your intuitions, you should be able to make real judgments based on evidence.

What Is The Importance Of User Onboarding?

User onboarding describes what the product is about and how it meets the demands of the users. In the end, user onboarding has various obligations, such as guiding consumers to purchase the product, subscribe, and adopt the user to the product more quickly.

When user onboarding is effective, consumers understand the product value and its use cases to address their problems. As a result, it encourages your customers to believe that your product is worthwhile.

Why Is User Onboarding Important For Your SAAS Company?

Poor customer onboarding leads to user turnover, which is why it is critical for SaaS businesses. We cannot attract new customers with unsatisfactory user onboarding in a SaaS platform.

Even though your product may have numerous alternatives, once people choose the alternatives, they would never return.

Furthermore, because monthly recurring fees support SaaS solutions, a satisfying onboarding experience is essential for keeping clients committed.

Finally, efficient user onboarding is critical for demonstrating the value of your product and convincing clients that it is worth paying for the following month.

How Can You Ensure A Positive User Onboarding Experience?

To reduce the amount of churned users, you must focus on the flaws that lead you to lose potential consumers. Not offering a decent user onboarding experience is usually at the top of the list. Creating a positive client experience is not something that happens by chance. It is intentional.

As previously said, providing effective onboarding is critical to preventing poor retention rates. Here are some points that all excellent user onboarding has in common:

1. Product-Market Fit

·         How will I set myself apart from my competitors?

·         In this market, how much are consumers ready to pay for your service?

·         What are the particulars of this market?

·         What has worked in the past, and what has not?

·         What is the size of the addressable market?

·         What makes this market unique?

·         What market would you like to offer your service/product in?

·         Who are my main rivals in this particular market?

·         Who are the key decision-makers in this market?

·         Why didn’t it work before?

2. The Intended Audience

·         What keeps my clients up at night?

·         What drives my customers to resolve their issues?

·         What is my ideal future condition for my customers?

3. Distribution

·         Affiliate programs

·         Community building

·         Content marketing

·         Engineering as marketing

·         Existing platforms

·         Offline Ads

·         SEO

·         Social and Display Ads

·         Speaking engagements

·         Target Market blogs

·         Trade shows

·         Unconventional PR

4. Messaging

·         Active listening

·         Feedback

·         Knowledge of the receiver

·         Simplicity

·         Speaking articulation

·         Straightforwardness

5. Pricing

·         Credit period offered

·         Market need of an application

·         Product life cycle

·         Promotional activity

·         The predetermined objectives

Make User Onboarding Your Ultimate Goal!

We talk about onboarding as if it were a stage – as if it were a process with a goal. However, a significant issue that individuals face is, “What is that endpoint?” When should I consider a consumer to be “onboarded”?

“Well, a client or user who has been with us or in the system for 30 days will be deemed on board,” some will say. “That doesn’t make any sense at all,” I responded. That has nothing to do with whether they are receiving good value. It has absolutely nothing to do with their achievement. It just has to do with the arbitrary timeframe you choose.

It is not about the amount of time spent in the system; it is about something else. You have to determine what that “something else” is. 

Also Read: What to do when you have a lot of site visits but few sales?


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