Tracking Customer Onboarding Metrics Increases Customer Lifetime Value By 75%
Customer onboarding is a set of activities geared towards introducing new customers to your SaaS product, company, or service. It entails gradually showing the client what you’ve got to offer. There are some customer onboarding metrics you can use to monitor how successful you are.
A positive onboarding experience confirms that the process was right, and the customers made their best choice. If customers don’t convert, it means that they don’t understand the product or get no value from it. While there are several Key Performance Indicators to monitor, here are the two most important ones.
1. Customer Engagement
It won’t help to wait until the end of the onboarding process to see if the client uses the product. If they’re not using it as soon as you introduce it, that’s a problem. Maybe, the customer doesn’t understand the product or there are other issues.
Make use of customer success software to determine how much time they spend on the product. This will show you other metrics like the engagement score and when customers last logged in to engage with the product.
When you can’t tell on customer experience, the software comes in handy. Once you see that the engagement is low, reach out to customers to identify the problem.
2. Milestones Achieved
Milestones refer to the stepping stones a customer faces before adjusting to a product. These are critical as they let customers achieve their goals with minimum effort. This happens only when the entire process goes right.
Milestones can best be compared to the stages of language learning. You first begin with the letters, then words, and progress to sentence formation. Doing vice versa only results in frustration and no value gained.
You can set milestones for your customers through the customer success platform depending on their goals. Only specific milestones must be set to help customers adopt the product.
Milestones are more than time-bound tasks to be completed by customers. If they don’t understand the importance of milestones, they won’t pay much attention. Yet, it’s only through the milestones that customers can grasp the product’s full benefits.
Why Use Customer Onboarding Metrics?
Customer onboarding is essential as it helps keep your customers happy. It’s all about delivering what’s promised to the customer within the set conditions. If you can follow through with that, you’ll have customers coming back for more.
Unfortunately, not many companies think so. Which leads to customers paying more to firms that serve them well. Proper customer service during the onboarding process will help you:
- Establish customer loyalty
- Share the product with more contacts
- Increase revenue
Once the customer pays for the product, that’s not the end of selling. With proper onboarding, you’re a step closer towards happy and loyal customers.
Takeaway
When getting customers to like and buy what you offer, you need to get the onboarding process right. This entails making sure they understand your SaaS product and the value from it. Some metrics you can use to monitor the process are customer engagement and the milestones achieved. You can establish how often a customer uses your product with customer success software. If the results aren’t great, reach out to the customer to learn about the possible challenges.
How can you track customer onboarding efficiently?
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