Customer onboarding is the process of engaging with customers at the beginning of their relationship with your company. It can be as simple as providing them with a welcome email or as complex as helping them sign up for a trial period. In any case, getting the onboarding flow right is essential because it will help you attract new users and retain existing ones.
What is Customer Onboarding?
Customer onboarding is imperative for any business, especially when acquiring new customers. It’s essential for building trust and loyalty with existing ones and attracting new ones.
Onboarding is getting new customers from the time they first interact with your product or service until they are fully engaged and dedicated to your brand. This process aims to help them feel like part of something bigger than themselves and that they’re not just buying into one particular service or product but joining an entire community that benefits them too.
The way you define customer onboarding will depend on what stage of the funnel you’re working in (ease-of-use vs. ease-of-buy), but here are some examples:
- Ease-of-use – “I just want someone who understands how my company works.”
- Ease-of-buy – “I need help deciding whether this product will fit me best.”
Why is Customer Onboarding Important?
Customer onboarding is the first impression of your product, and it’s an integral part of every customer lifecycle.
When someone starts using your product, they need to be able to get started in a way that makes sense for them. This means providing clear instructions on how to use the product, including where and when those instructions are located.
For example: “Press this button if you want help with this feature” or “This is what happens when I tap here.” If this type of information isn’t available at every step of their journey through your site or app, they may feel frustrated or confused, which could lead to churning within days (or even hours!).
Top 9 Customer Onboarding Metrics to Prioritize in 2023
When it comes to customer onboarding, there are several metrics that companies might track to measure the success of their onboarding process and identify areas for improvement. Some of the key metrics that companies might track include
1. Time to Value(TTV)
Time to Value is a metric that measures the time it takes for a customer to complete an onboarding process. This includes everything from signing up for an account to verifying their identity and accessing certain products or services. This metric measures the time customers start seeing value from the product or service they’ve subscribed to. This could be in the form of completed tasks, user engagement, or any other measure of value that is specific to the product or service.
Time-to-value can be calculated by using your organization’s existing processes for collecting customer data (e.g., surveys) and then determining how many steps are required for them to complete those tasks successfully.
For example: If you ask people who have recently signed up whether they would recommend your brand as a place where they can get support when there’s an error on their site or app, then you might assume that this step takes 5 minutes since most people would say yes when asked if they’d recommend us!
However, if we look at our internal numbers at Upshot.ai from previous campaigns, this number would probably be much higher than 5 minutes because we’re asking people questions before sending them off to other parts of our sites where things may not work as well.
2. Time to Complete Onboarding
The second metric is time to complete onboarding. This metric measures how long customers complete their first purchase, transaction, or payment.
The critical question here is: “How long does it take my customer to complete each step in their journey?” A good answer will help you understand where your business needs improvement and which areas require more attention from you as a customer experience manager (CEM).
3. Customer Response Rate
Customer Response Rate is the percentage of customers who respond to a specific campaign or message. It is one of the essential metrics for customer onboarding because it tells you how well your messages resonate with people on social media and in person.
4. Escalation Response Time
This metric is the amount of time between your customer hitting a “problems” button on their account and when you’re able to get in touch with them. If you can respond within an hour, this is good, but if they still need to, they must know they can reach out if they have any questions or concerns.
You can measure this by measuring how many contacts/emails are sent per month across all customers combined (conversations + escalations). The average response time should be less than 60 minutes for new and existing customers; anything above 90 minutes could indicate room for improved service offerings or processes at scale!
5. Customer Churn Rate
Churn (the percentage of customers who leave a company) is a crucial metric to track. This metric measures the number of customers who cancel their subscriptions or stop using the product or service. This can be a good indicator of how well the onboarding process is working and the overall value of the product or service.
To know more about Customer Churn, Read: Customer Churn: How to Measure and Reduce It.
6. Trial-to-Paid Conversion Rate
The trial-to-paid conversion rate is the percentage of users who converted from a trial to a paid subscription.
To calculate this metric, you need to:
- Identify your conversion rate for free trials (e.g., 1 in 1000). You can do this by looking at which users convert on their first, second, and third-day use. Then divide that number by dividing it by all three combined days (1/3). This will give you an average daily conversion rate over those three days.
- Calculate how many users signed up during each 30-day period (1/30)*1/3 = 0.04%. Multiply this by 100%, and you will have your TTPC rate.
7. Product Adoption Rates
Product adoption rate is the percentage of users who use a specific feature. This metric is used to measure how well your users are adopting your product, and it can be tracked by feature
8. Customer Lifetime Value(LTV)
Customer lifetime value (LTV) is the total value of a customer over their lifetime, or how much it will cost to acquire them in one year.
- You can calculate LTV by multiplying ARPU by ACLV: ARPU = Average Revenue per User; ACLV = Average Customer Life Time Value.
We have written a detailed blog on What is Customer Life Time Value and How to Improve CLTV. Check it out!
9. Average Response Time
The average response time is the average time it takes for customers to receive a response from your company. It’s measured in hours, days, and weeks.
This metric tells you how quickly you respond to customer requests, which can be helpful when managing a customer service team or monitoring overall performance at the company level. If a customer takes longer than expected to receive an answer from your company, this can create frustration and lead to negative feelings toward the brand and its products/services.
These are the Customer Onboarding Metrics you should be tracking!
Customer onboarding metrics are the most important pieces of data you can track. They tell you about your customers and how they interact with your product, giving you insight into what works, what doesn’t, and where to focus next.
To prioritize these customer onboarding metrics in 2023 (and beyond), everyone from executives down must understand their value and how they fit into their broader strategy for growing revenue or improving retention rates by 2020-2025.
Customer onboarding is one of the most important aspects of a company’s digital strategy. The results of customer onboarding metrics can be used to determine how much time, resources, and money is spent on this process. It also gives you insight into what problems are occurring during the onboarding process (e.g., delays in completing the registration or getting access to systems) and how many people are using your products or services once they’re up and running with them.
Suppose you want to ensure you get all these benefits from your customers. In that case, it is imperative that you track their behaviors as closely as possible so that when there’s an issue, it can be addressed quickly before any further damage occurs!
It’s important to remember that different companies will have different goals and ways of measuring success, so the specific metrics that are tracked will vary depending on the company and the product or service.
Another thing to consider for 2023 is the importance of collecting data from multiple channels and touchpoints. Companies should have a single view of customer behavior, preferences, demographics, etc., which can be used to personalize the onboarding process and improve conversion rates.
Additionally, Artificial Intelligence and Machine Learning capabilities can track and analyze customer behavior and preferences during onboarding to improve the customer experience and increase retention and engagement.
The Upshot.ai Advantage
If you need help with customer retention and managing your relationships with your current customers, consider using Upshot.ai.
Upshot.ai is an omnichannel, customer engagement, and gamification platform. It offers product teams a powerful behavioral analytics platform that automatically captures everything that users are doing with your product. You can look at multiple metrics, iterate on them over time, and run experiments to improve different parts of your business.
Armed with this information, you can make intelligent product decisions, create effective campaigns across the customer journey and build strong relationships with your customers.
Interested in a demo of the Upshot.ai platform? We’d love to chat with you!Follow @upshot_ai