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FunnelTerm

Onboarding

onboarding · primary activation · client training

Onboarding is the process of initial activation of a new user: from registration to the first key action that confirms the value of the product.

Onboarding is the user’s journey from the moment of registration or first purchase to the Aha moment when he is hooked on the product. In SaaS, this is a critical funnel: for most products, 40-60% of new users drop off in the first 7 days simply because onboarding did not bring them to value.

In my projects, onboarding is divided into three phases: technical setup (give the client a working product), demonstrate value (show the first result), habit (make the product become part of the workflow). Most teams only do the first and forget about the second and third.

The key onboarding metric is time-to-value: how much time passed from registration to the first result. In good SaaS products it is 1–3 days, in bad ones it is 2–3 weeks. Every extra day in the onboarding funnel costs 5-8% retention by day 30.

Specifics from practice: in one EdTech project, we reduced the time-to-value from 11 to 4 days due to a personalized email series and removed the mandatory step of phone verification. Retention on the 30th day increased from 19% to 31%. Onboarding is not documentation or a welcome letter, it is a product funnel.

Frequently asked questions about Onboarding

What is onboarding?+
Onboarding is the user's journey from registration or first purchase to the aha moment when he is hooked on the product. This is a critical funnel: for most SaaS, 40-60% of new users drop off in the first 7 days due to the fact that onboarding did not bring them to value.
What is time-to-value?+
This is the time from registration to the first real result, a key onboarding metric. In good SaaS it is 1–3 days, in bad SaaS it is 2–3 weeks. Each extra day in this funnel costs approximately 5-8% retention by day 30.
What stages does onboarding consist of?+
Of the three: technical setup, provide a working product; demonstration of value, show the first result; forming a habit, integrating the product into the workflow. Most teams only do the first stage and forget about the second and third.
How to improve onboarding?+
Reduce time-to-value: remove unnecessary steps like mandatory verification, add a personalized email series, lead the user to a key action. In my EdTech case, this increased day 30 retention from 19% to 31%.

Related terms

Where is it understood in practice?

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