When it comes to building strong relationships with your customers, the onboarding process is everything. It’s the first real taste your customer gets of working with you, and it sets the stage for the entire relationship going forward. But what does customer onboarding actually mean, and why is it so important?
In this blog post, I’ll break down the essentials of customer onboarding, walk you through key steps, and share some best practices, examples, and tips to help you master this process. Let’s dive in.
What Is Customer Onboarding?
At its core, customer onboarding is all about making sure your new customers know how to use your product or service. It’s the process of guiding them from signing up to fully understanding how to get the most out of what you offer. Think of it as the bridge between your sales pitch and delivering real value.
A smooth onboarding process makes customers feel confident they’ve made the right choice, helps reduce early churn, and encourages them to keep coming back.
Why Is Customer Onboarding Important?
Customer onboarding is crucial for several reasons:
Reduced Churn
A poor onboarding experience can lead to customers leaving after a few months, wondering why they even signed up in the first place. When onboarding is done well, it prevents this churn by showing customers the value of your product early on.
Increased Customer Lifetime Value
When customers know how to use your product effectively, they’re more likely to stick around longer, increasing their lifetime value. This is especially important for businesses that rely on recurring revenue, like SaaS companies.
Accurate Expectations
Onboarding helps manage customer expectations by clearly outlining what your product can and cannot do. This prevents disappointment down the line and sets a solid foundation for the relationship.
Improved Referral Rates
Customers who have a great onboarding experience are more likely to refer others. They become advocates for your brand, helping you gain new business without having to lift a finger.
The Customer Onboarding Process: Steps, Best Practices, and Examples
A strong onboarding process typically follows a series of steps designed to get your customers up to speed. Here’s a look at the key stages, with some best practices and real-world examples along the way.
1. Sign-Up Process
The onboarding journey starts from the moment a customer decides to sign up. A smooth and simple sign-up process is critical.
Sign-Up Process Best Practices
- Keep it short: Only ask for the information you need to get customers started.
- Consider splitting the form: If you need more details, break the sign-up process into multiple steps to avoid overwhelming users.
- Use social sign-ups: Offering sign-up options via Google or Slack can reduce friction.
Example: Twilio’s Sign-Up Page
Twilio’s form is short and sweet, with no credit card required upfront, making it easy for users to dive right in.
Example: Trello’s Sign-Up Page
Trello keeps it simple with just one field to fill out and offers users the option to sign up with tools they already use, like Google.
2. Welcome Email
Once a customer has signed up, the next step is sending a welcome email to get them started.
Welcome Email Best Practices
- Say thank you: Acknowledge your new customer and make them feel valued.
- Provide resources: Share links to help centres, product tours, or FAQs to help them get started.
- Encourage a first login: Make the main call-to-action in your email about getting them back into your product.
Example: Luminary’s Welcome Email
Luminary keeps it short, with a single call-to-action button that directs customers back into the product.
Example: DocSend’s Welcome Email
DocSend’s email introduces the customer onboarding process and outlines three steps to get started.
3. First Log-In
The first time a customer logs into your product is their first real experience using it. It’s a critical moment.
First Log-In Best Practices
- Offer guidance: Use a tutorial or set-up wizard to show them around.
- Provide quick wins: Help customers achieve something small but meaningful, like completing a walkthrough.
Example: ClearBrain’s First Log-In
ClearBrain provides a clear overview of the account setup process, motivating users to get started.
4. Integrations, Invitations, and Data Imports
For B2B products, setting up integrations, inviting team members, or importing data is often part of the onboarding process.
Integrations, Invitations, and Data Imports Best Practices
- Automate when possible: Make it easy for customers to connect with other tools or import data.
- Make it optional: Not every user needs integrations or data imports, so don’t force it.
Example: monday.com’s User Invite
monday.com makes it easy to invite team members by either adding emails or sharing a link.
5. Product Walkthrough
A product walkthrough helps users learn how to navigate your platform by actually using it.
Product Walkthrough Best Practices
- Make it skippable: Some users may already know your product well, so let them bypass this step.
- Offer support: Ensure users can find additional help if needed.
6. Follow-Up Emails
Onboarding doesn’t end after the first log-in. Regular follow-up emails help keep customers engaged.
Follow-Up Emails Best Practices
- Share tips: Offer tips on using your product, feature highlights, or success stories.
- Send short, frequent emails: Keep them focused on one topic at a time to avoid overwhelming customers.
Example: Zapier’s Follow-Up Email
Zapier includes a helpful video and clear links to support, encouraging customers to dive deeper into the product.
What’s the Goal of Your Customer Onboarding Process?
Ultimately, the goal of your onboarding process is to set your customers up for long-term success. It’s about more than just getting them to log in once – it’s about creating an experience that keeps them coming back, engaging with your product, and seeing real value from it.
Customer Onboarding Examples
Here are a few examples of how different companies approach onboarding:
Grammarly
Grammarly offers a simple onboarding process that lets users immediately start using the product while learning about key features along the way.
Duolingo
Duolingo’s onboarding process is light and engaging, encouraging users to dive straight into learning without slowing them down.
Slack
Slack uses intuitive overlays and tutorials to walk users through its features in a natural, user-friendly way, with options for self-guided learning.
How To Create a Customer Onboarding Strategy in 5 Steps
If you’re building an onboarding strategy from scratch, here’s a simple five-step guide to get started:
1. Consider How Customers Sign Up
Your onboarding process should be tailored to how your customers sign up – whether through a demo, website, or app.
2. Create the First Welcome Message
Your welcome message should engage customers immediately and give them a clear path forward.
3. Decide How Customers Should First Interact With Your Product
Make sure their first experience is seamless and highlights the value of your product.
4. Determine How Customers Will Learn About Product Features
Use tutorials, walkthroughs, or automated feature callouts to ensure they’re aware of your product’s full potential.
5. Outline Process Communication
Have a clear plan for follow-ups, check-ins, and how you’ll communicate with your customers throughout the onboarding process.
FAQs About What Does Customer Onboarding Mean?
What is customer onboarding?
Customer onboarding is the process of guiding new customers through the initial stages of using your product or service, ensuring they understand how to use it and see its value.
How would I onboard a new customer?
The best way to onboard a new customer is to create a clear, step-by-step process that addresses their needs, answers their questions, and highlights the value of your product.
Who handles customer onboarding?
Typically, customer onboarding is managed by account managers, onboarding specialists, or dedicated support teams.
What is a customer onboarding platform?
A customer onboarding platform is software that helps automate and streamline the onboarding process, offering tools like tutorials, progress tracking, and customer support.
By mastering your customer onboarding process, you can build strong, long-lasting relationships with your customers, reduce churn, and drive success for your business.
SUBMIT YOUR COMMENT