Customer Onboarding Metrics You Need to Know

So, you've got a great product, and people are signing up—but what happens next? The onboarding experience is critical. Done well, it can be the foundation of a long-term customer relationship. But to make sure your onboarding is working, you need to measure it. Without the right data, it’s a bit like trying to fix a leaky pipe in the dark. Let’s shine a light on the essential metrics for customer onboarding, so you can optimise every step and keep your users coming back for more.

Why Measuring User Onboarding Success is Important

Measuring onboarding success isn’t just a nice-to-have; it’s essential. Without it, you’re guessing at best, and at worst, you’re missing out on opportunities to fix issues that push customers away. By tracking the right metrics, you get to see exactly what’s working and what isn’t, which makes improving the process so much easier. Plus, metrics help you understand how customers actually use your product, so you can create an onboarding experience that makes sense for them—not just for your team.

Here’s what metrics can help you achieve:

• Create personalised flows for different user groups
• Identify friction points and fix them fast
• Prioritise features that drive higher activation
• Reduce the time it takes for users to experience value
• Make decisions based on real data, not assumptions

Importance of Customer Onboarding

Onboarding isn’t just a small part of the customer journey—it’s the starting line for everything that comes after. When users feel supported and find value quickly, they’re far more likely to stick around. A well-designed onboarding experience is critical for reducing churn, increasing engagement, and ultimately boosting revenue.

Good onboarding sets the tone. It’s your chance to make an amazing first impression, show customers what your product can do for them, and give them a reason to come back.

SaaS Customer Onboarding Metrics

Let’s dive into the specific metrics you should be tracking for SaaS customer onboarding. These metrics give you real insights into the health of your onboarding flow and let you optimise based on hard data.

Tracking the Right Customer Onboarding Metrics

Tracking the wrong metrics is almost as bad as not tracking any at all. Here’s a list of the metrics that really matter for SaaS onboarding, with tips on how to measure and improve each one.

Essential Customer Onboarding Metrics for SaaS

1. Retention Rate

How it’s measured

Calculate retention by dividing the number of users who remain by the initial number of users in a cohort.

How to improve it

• Segment Your Users: Look at who stays and who leaves, and segment based on user needs, industry, or product usage to see where retention issues lie. This can help you identify which user segments need a more tailored approach.
• Create Targeted Content: Build resources that address the specific needs of high-churn groups, like tutorials, FAQs, and personalised onboarding emails.
• Introduce Check-ins and Milestones: Regular touchpoints, such as onboarding calls or milestone emails, can keep users engaged and highlight their progress.
• Incentivise Long-Term Use: Offer rewards, such as discounts or added features, for milestones reached within the first 30 or 90 days. Rewarding users for consistent engagement can reinforce their commitment to your product.

2. Engagement Rate

How it’s measured

Divide the number of active users in a cohort by the total users in that group.

How to improve it

• Personalise In-App Content: Show users relevant features based on their usage patterns. For example, if they frequently access analytics, highlight related features to deepen their engagement.
• Trigger Reminders and Nudges: Use notifications or emails to remind users of features they haven’t tried yet or to celebrate usage milestones.
• Gamify the Experience: Consider introducing gamification elements like progress bars, badges, or usage streaks to make using your product more engaging.
• Offer Interactive Guides: Implement interactive walkthroughs that lead users through complex tasks, helping them understand how to maximise the product’s benefits.

3. Completion Rate

How it’s measured

Divide the number of users who completed onboarding by the total number in that cohort.

How to improve it

• Reduce Friction Points: Identify where users are dropping off and remove unnecessary steps. Replace long forms or complex tasks with simpler interactions or staggered setups.
• Provide “Next Step” Prompts: At each stage of onboarding, include a clear call-to-action for the next step, like “Set up your first project” or “Invite a team member.”
• Use Progress Indicators: Display a progress bar to let users see how much of the onboarding they have completed and how much is left.
• Offer Assistance Options: Provide users with easy access to support options—such as chat, FAQs, or help videos—so they can overcome hurdles without abandoning the process.

4. Time to Value (TTV)

How it’s measured

Track the time from the beginning of onboarding to the first moment of perceived value.

How to improve it

• Streamline Onboarding Steps: Eliminate steps that don’t immediately add value. For instance, instead of a detailed product tour, guide users to a single feature that showcases immediate value.
• Introduce Early Wins: Start with the most impactful features that deliver results fast. For example, let users complete a small, satisfying task early on that shows them the benefit of your product.
• Customise the Experience: Tailor onboarding to each user’s needs based on their industry or use case, so they see relevant value sooner.
• Provide Personalised Content or Tutorials: Customise tutorials and suggestions based on user data, ensuring they quickly see how the product fits their specific needs.

5. Product/Feature Adoption

How it’s measured

Divide the number of users engaging with a feature by the total users in the cohort.

How to improve it

• Promote Key Features Gradually: Introduce core features one at a time, so users aren’t overwhelmed and can adopt each one fully.
• Use Tooltips and Highlighting: Guide users to important features with tooltips or subtle animations that draw attention.
• Provide Use Cases: Showcase real-life examples or case studies to demonstrate the value of specific features.
• Track and Iterate: Monitor which features are used the most and adjust the onboarding process to highlight those that drive the highest engagement and satisfaction.

6. Number of Support Tickets

How it’s measured

Count the number of tickets related to onboarding.

How to improve it

• Identify Common Issues: Review support tickets regularly to spot trends. If users frequently ask the same questions, adjust the onboarding process to address these points more clearly.
• Create Self-Help Resources: Develop an FAQ or knowledge base that addresses common issues, reducing the need for support tickets.
• Offer Real-Time Support During Onboarding: If possible, provide live chat or in-app assistance for users during onboarding to help resolve issues on the spot.
• Run User Testing: Conduct usability tests to understand where users are likely to get stuck and refine those parts of the process.

7. Customer Lifetime Value (CLTV)

How it’s measured

Multiply the average purchase value by the purchase frequency and then by the average customer lifespan.

How to improve it

• Emphasise Value Throughout: Continually highlight how your product can add value in different areas, helping customers see it as essential to their work.
• Build a Relationship: Regularly engage users with personalised content, newsletters, or success stories to keep them connected to your brand.
• Upsell and Cross-sell Relevant Features: Tailor upsell offers based on user behaviour and ensure they add value to the user’s experience.
• Monitor for Churn Signals: Track signs of disengagement, like a drop in login frequency, and proactively reach out to re-engage those users.

8. Time to Onboard (TTO)

How it’s measured

Measure the days or sessions from sign-up to the end of onboarding.

How to improve it

• Set Clear Expectations: Tell users upfront how long onboarding will take so they can plan accordingly.
• Reduce Steps and Simplify: Remove any steps that don’t add value to the onboarding experience, focusing only on essentials.
• Use Interactive Checklists: Provide a checklist that helps users see what they need to complete, making the process feel manageable.
• Optimise the Interface: Make it easy to navigate, reducing the time it takes users to find what they need and complete onboarding.

9. Onboarding Revenue (OR)

How it’s measured

Calculate net revenue retention by tracking recurring revenue and subtracting losses from churn or downgrades.

How to improve it

• Identify Upsell Opportunities Early: Introduce higher-value features to users who show strong early engagement.
• Offer Limited-Time Discounts: Create special offers during onboarding to encourage users to upgrade sooner.
• Showcase Additional Benefits: Throughout onboarding, demonstrate the benefits of premium options or add-ons.
• Track Churn Reasons: Identify why users might downgrade or leave during onboarding and address these pain points in the process.

10. Customer Response Rate (CRR)

How it’s measured

Divide the number of responses by the total surveys sent, then multiply by 100.

How to improve it

• Keep Surveys Short and Relevant: Only ask necessary questions to avoid survey fatigue.
• Personalise Survey Content: Use dynamic content based on user activity, so the questions feel more relevant to them.
• Provide Incentives: Offer a small reward, such as a discount or bonus content, to encourage survey completion.
• Experiment with Timing: Send surveys at different stages of onboarding to identify the best time for high response rates.

11. Logins to Your Tool (LTYT)

How it’s measured

Count the number of logins over the onboarding period.

How to improve it

• Use Gentle Reminders: Send friendly email nudges or in-app notifications encouraging users to log in.
• Create Engagement Loops: Build in reasons for users to log in regularly, such as progress updates, new content, or challenges.
• Offer “Quick Wins”: Encourage users to complete simple tasks in the tool that make them feel accomplished and prompt them to log in more frequently.
• Analyse Inactive Users: For users who aren’t logging in, reach out with targeted content or tutorials to re-engage them.

12. Customer Effort Score (CES)

How it’s measured

Ask users to rate how easy it was to complete onboarding, and calculate the average score.

How to improve it

• Simplify Complex Steps: Break down difficult tasks into smaller, manageable steps to reduce friction.
• Provide Clear Instructions: Use straightforward language and add tooltips or icons to guide users through tricky sections.
• Offer Multiple Learning Options: Provide options like video tutorials, written guides, and interactive tours to suit different learning styles.
• Monitor User Feedback: Regularly review feedback to pinpoint specific areas causing high effort scores and make improvements.

13. Customer Satisfaction Score (CSAT)

How it’s measured

Survey users post-onboarding and calculate the percentage of positive responses.

How to improve it

• Act on Feedback: Regularly review feedback to identify recurring issues, and make necessary adjustments to improve the user experience.
• Use Personalised Thank You Messages: Show appreciation for feedback, and let users know their input is valued.
• Engage Users Beyond Onboarding: Follow up with users after they complete onboarding to maintain satisfaction.
• Set Realistic Expectations: Ensure your marketing and onboarding match the actual product experience, so users aren’t disappointed.

14. Number of Active Users (NoAU)

How it’s measured

Track the total active users in the cohort.

How to improve it

• Re-Engage Inactive Users: Send targeted emails or push notifications to encourage inactive users to log back in.
• Introduce New Features: Regularly highlight new features or updates that might bring back inactive users.
• Run Engagement Campaigns: Use campaigns, like exclusive webinars or product updates, to encourage ongoing use.
• Measure Usage Trends: Identify what keeps active users engaged and replicate those strategies across all user segments.

15. Average Session Duration (ASD)

How it’s measured

Divide total session time by the number of sessions.

How to improve it

• Encourage Product Exploration: Use onboarding emails or in-app prompts to encourage users to explore different sections of your product.
• Provide Interactive Elements: Introduce interactive elements or activities that keep users engaged within the app longer.
• Analyse Drop-Off Points: Look at session durations in detail to see where users tend to leave and make those areas more intuitive.
• Offer Advanced Tips: Share tips and best practices for using the product more effectively, extending session duration as users explore new functionalities.

By following these steps, you can optimise each metric and create an onboarding experience that’s smooth, intuitive, and enjoyable for your users. The goal is to make sure that each user finds value quickly and stays engaged long-term.

FAQs About How to Measure Customer Onboarding

1. Why is measuring customer onboarding important?
Measuring onboarding helps you see what’s working and what isn’t, allowing you to make data-driven improvements that increase user retention and satisfaction.

2. What is the “aha” moment in onboarding?
The “aha” moment is when users first see the real value of your product, helping them understand why they need it.

3. How can I improve my onboarding completion rate?
Identify drop-off points, simplify the process, and remove any steps that don’t add value to help users finish onboarding.

4. What’s the difference between TTV and TTO?
TTV (Time to Value) is how long it takes for users to see value, while TTO (Time to Onboard) is the total time to complete onboarding.

5. What’s a good retention rate for SaaS onboarding?
A good retention rate varies by industry, but generally, aiming for 80% or higher in the first month is a strong benchmark.