Customer onboarding

What is customer onboarding?

Customer onboarding is the process of guiding new users through the initial stages of understanding how to use your product. The goal of customer onboarding is to drive product adoption, where users find navigating the app easy and satisfying. It’s about helping them understand its value proposition, develop the skills they need to succeed, and ultimately, become productive and enthusiastic users.

Why is effective customer onboarding important?

Onboarding is your time to highlight the most valuable features for first-time customers and users, so you can accelerate their time to value. No matter what you build or sell, it’s important to help your customers learn your product from day one. 

A well-structured onboarding program has many benefits, like:

• Faster product adoption: An educational, smooth onboarding experience creates a positive first impression and leads users to value as fast as possible. Onboarding is your time to lead customers to high-value features and workflows, accelerating their “aha!” moments and increasing product usage.
• Increased customer retention: By giving users the knowledge and skills they need to be successful, you can build enduring habits that keep users returning to your product over time. Satisfied customers are also more likely to stick around for the long haul and become loyal brand advocates.
• Fewer support tickets: While some technical challenges submitted via support ticket or call do require human intervention, a vast number—particularly those related to basic or routine activities like onboarding, account set-up, or basic troubleshooting—don’t. Clear, proactive guidance via onboarding helps you minimize reactive support requests.

How can I improve customer onboarding?

When a customer first logs into your product, a confusing (or missing) onboarding process leads to user frustration, friction, and eventually, churn. But with a good onboarding process, you can guide users through key workflows, highlight important tools, and introduce your product’s user interface (UI). Use these tips to properly onboard customers:

• Personalize onboarding for your audience: Tailor your onboarding experience to multiple user audiences based on their needs, goals, and behavior. if the app serves different user roles, tailor onboarding to the specific needs of each persona or employee role. By designing onboarding for each unique type of user, companies can drive new users to their specific a-ha moments more quickly and deliver the context needed to keep users engaged.
• Use in-app messaging and resource centers: In-app guides are a simple, always-on way to automatically onboard users, at scale. Serve educational content and workflows to users, from account setup to new feature announcements.
• Track and analyze engagement: Monitor key onboarding metrics and continuously iterate on your onboarding flow to optimize its effectiveness. Use interactive elements like tooltips, walkthroughs, and checklists to keep users interested and actively learning.

How do I create a customer onboarding process that drives user adoption?

Onboarding is a multi-stage process that guides users from initial sign-up to becoming proficient and engaged product advocates. Let’s explore the typical onboarding stages, how to structure them effectively, and what they should accomplish.

Step 1: Welcome users

User onboarding should include an introduction to the app, and an orientation to the main navigation patterns. With an onboarding welcome experience, users will understand the general purpose of the app, and how to access the pages and areas needed to complete key tasks. You can add video footage, or other content here. Here’s an example of a welcome pop-up: 

Step 2: Guide users through configuration

Some products require setup or installation before the user can get started. For a file sharing or collaboration tool, the user may need to add contacts or teammates. For a music discovery app, the user may need to define their listening preferences. Onboarding should guide the user through any configuration steps needed to accomplish the important outcomes.

Step 3: Lead users to the payoff task

A payoff task happens when the user experiences the action or outcome that initially brought them to the product.

For a to-do app, this might be checking off a task. For a billing tool, it might be receiving payment from a customer. These payoff tasks are often paired with a setup task. For the task management app, before a task can be completed, the user must first create a task. Effective user onboarding will guide the user through the payoff tasks, while calling attention to the setup tasks that make up the complete process.

Adoption guides users through core functionalities and helps them achieve early wins to drive product adoption.

Step 4: Maintenance mode

Monitor user activity, send follow-up messages, identify potential upsell opportunities, and offer ongoing support to address any questions or roadblocks.

What are some best practices for customer onboarding?

Product-led companies rely heavily on users’ ability to intuitively discover the product’s value. Here’s how to optimize your onboarding process for this user-centric approach:

• Prioritize usability: First and foremost, ensure your product is user-friendly. An intuitive interface with straightforward navigation minimizes the need for extensive upfront instruction. Focus on a clean layout, logical user flows, and consistent design elements to guide users through the product naturally.
• Offer in-app guidance: While a user-friendly product is essential, some level of guidance can be beneficial. PendO In-app Guides empower you to highlight core functionalities right when users need them. These contextual walkthroughs can appear on relevant screens, guiding users through key features and showcasing their value proposition. This targeted approach avoids overwhelming users with information upfront while ensuring they discover the product’s full potential.
• Contextual help at every step: Supplement guides with a robust contextual help system within the product. Contextual tooltips, for example, can appear on hover or click, providing brief explanations of specific UI elements or functionalities. A readily accessible knowledge base with searchable articles allows users to find answers to their questions independently, fostering self-sufficiency and reducing reliance on external support channels.
• Data-driven optimization: Don’t be afraid to iterate and improve your onboarding strategy. Utilize user behavior data from your product analytics to personalize onboarding experiences and identify areas for improvement. See which features users struggle with and adjust your in-app guidance accordingly. Track completion rates for onboarding steps and identify bottlenecks hindering user progress. You can refine your onboarding process by continuously analyzing user data to ensure it remains effective and engaging for all user segments.

By following these best practices, you can create a product-led onboarding experience that empowers users to discover the value of your product independently while still providing them with the necessary guidance and support when they need it most. This approach fosters a sense of user ownership and sets the stage for long-term product adoption and success.

How do I personalize the customer onboarding experience for different user types?

Successful onboarding starts with acknowledging that one-size-fits-all approaches rarely work. Different users have unique needs, goals, and learning styles. By personalizing the onboarding experience, you cater to these diverse user segments, ensuring a more engaging and compelling journey for everyone.

Here’s how you can personalize your onboarding strategy:

• Segment by user persona: Developing user personas is a valuable exercise that allows you to define your ideal customer archetypes. By considering user roles, goals, pain points, and technical expertise, you can tailor onboarding experiences to resonate with each persona. For example, a new marketing user might benefit from an onboarding flow focused on campaign creation tools, while a technical user might need a deeper dive into product integrations.
• Leveraging user data: The wealth of data you collect during signup and user interactions offers a goldmine for personalization. Use this data to personalize greetings, content, and in-app guidance. For instance, welcome new users by name and highlight features that directly address their needs based on their signup information. Behavioral data can also be used to tailor in-app guidance. A timely walkthrough can offer personalized assistance if a user is struggling with a particular feature.
• Offer flexible learning paths: Users have different learning styles. Some prefer self-paced exploration, while others might benefit from more structured guidance. Providing a variety of onboarding options caters to these preferences. Offer self-paced tutorials, interactive walkthroughs, or personalized training sessions for complex user segments. This flexibility empowers users to choose the learning path that best suits their needs and maximizes their knowledge retention.

Personalizing the onboarding experience demonstrates that you understand your users and their unique needs. Personalization fosters a sense of connection and sets the stage for a long-lasting, successful relationship with your product.

What are some UI patterns for customer onboarding to keep users engaged?

Onboarding is a crucial opportunity to capture user attention and set the stage for a successful product experience. Engaging UI patterns play a vital role in keeping users interested and motivated as they navigate the initial learning curve. Tools like Pendo In-app Guides let you use different UI patterns that transform onboarding from a static process to a dynamic and interactive journey.

• Tooltips: These bite-sized nuggets of information appear when hovering or clicking, providing contextual help and quick tips precisely when users need them. Tooltips are ideal for highlighting specific UI elements, explaining functionalities, or offering keyboard shortcuts without overwhelming users with excessive information.
• Walkthroughs: Walkthroughs guide users through essential workflows and functionalities within your product. They can be invaluable for introducing new features or complex tasks. By showcasing the process visually and interactively, walkthroughs ensure users understand not only what to do but also how to do it effectively.
• Checklists: Complex tasks can feel daunting. Checklists break down these tasks into smaller, more manageable steps, providing a clear roadmap for users to follow. As users complete each step, the checklist provides a sense of accomplishment and motivates them to continue through the onboarding process.
• Overlays: Overlays offer a visually distinct way to highlight key features and functionalities within your product. These interactive elements can include text, images, or even short videos to grab user attention and showcase the value proposition of specific features. Overlays effectively draw attention to new features, limited-time promotions, or critical information that users might otherwise miss.
• Modals: While overlays provide a more subtle approach, modals can deliver important announcements, personalized messages, or critical onboarding steps that require user input. The temporary nature of modals ensures they don’t disrupt the overall user flow, yet their prominent placement guarantees user attention.

Remember, the key is to tailor your approach to the specific needs of your users and the functionalities you want to highlight. By strategically incorporating these UI patterns into your onboarding strategy, you can create an engaging and interactive experience that keeps users motivated and on track for success. 

What are some customer onboarding metrics to track and analyze for improvement?

Tracking and analyzing key customer onboarding metrics can yield valuable insights into user behavior and identify areas for improvement. This data empowers you to refine your onboarding process continuously, ensuring users experience a smooth transition and achieve their goals quickly and efficiently.

Here are a few crucial customer onboarding metrics to track and analyze:

• Guide engagement: Guide engagement measures how users interact with the in-app guides within your product. We measure the percentage of users who engaged with the guide (i.e. by clicking on the link or button, excluding “dismiss” actions), by the total number of visitors who saw this subset of guides. The median product has a guide engagement rate of 28.5%.
• Feature adoption: This metric tracks how many users actively engage with your product’s different features. Understanding which features customers use and which they neglect helps you identify potential roadblocks or areas where users might require additional guidance. By analyzing feature adoption rates, you can tailor your onboarding journey to highlight the most valuable functionalities and ensure users discover the full potential of your product.
• Completion rate: Monitor the percentage of users who complete key onboarding steps, such as creating a profile, completing a tutorial, or achieving a specific milestone within the product. Low completion rates for critical steps indicate areas where users might face friction or confusion. Analyzing completion rates allows you to pinpoint these obstacles and refine your onboarding process to ensure users stay engaged and successfully navigate the initial product experience.
• Time to value: This metric measures how long it takes users to achieve their first success with your product. The faster users experience the value proposition of your product, the more likely they are to become engaged and retained customers. Analyzing time to value helps you identify bottlenecks in the onboarding journey that delay user progress. By streamlining onboarding steps and highlighting core functionalities, you can minimize the time it takes users to experience the “aha!” moment and unlock the true value of your product.
• Net promoter score (NPS): The NPS is a valuable indicator of user satisfaction and loyalty. By sending NPS surveys after users complete the onboarding process, you can gauge their perception of your product and identify areas for improvement. High NPS scores indicate a positive onboarding experience that fosters user satisfaction and brand advocacy. Analyzing NPS data alongside other onboarding metrics allows you to identify correlations between specific onboarding elements and overall user sentiment.

By tracking these metrics, you can identify areas for improvement and continuously optimize your onboarding program for maximum impact.

What are common customer onboarding challenges and how to overcome them?

Even the most meticulously crafted onboarding programs can encounter obstacles. Here’s a closer look at some common challenges companies face, along with strategies to overcome them:

• Inconsistent onboarding experiences: A disjointed onboarding journey can leave users confused and frustrated. Imagine a new user encountering different onboarding steps or conflicting information depending on their signup method. To avoid this pitfall, develop a clear and repeatable onboarding framework. This framework should define a consistent sequence of steps and touch points that all users experience, regardless of their entry point. Standardization ensures a smooth and seamless onboarding journey for everyone.
• Incomplete user data hampering personalization: The effectiveness of personalized onboarding experiences hinges on accurate and up-to-date user data. Incomplete data can lead to providing irrelevant content and missed opportunities to connect with users on a deeper level. Invest in data quality management practices. This might involve implementing data validation steps during signup, offering incentives for users to complete their profiles, and regularly reviewing and cleaning your user data. By maintaining high-quality user data, you can personalize onboarding experiences and ensure they resonate with each user’s needs.
• Limited resources for onboarding initiatives: For smaller companies or startups, allocating resources for a comprehensive onboarding program can be challenging. However, a robust onboarding program is crucial for user acquisition and retention. Explore automation opportunities to streamline repetitive tasks associated with onboarding. For instance, Pendo’s Guides let you automate walkthroughs and in-app communication, freeing up your team’s time and valuable resources to focus on more strategic initiatives. Additionally, consider creating a resource center that empowers users to find answers independently, reducing the burden on your support team.

By acknowledging these common challenges and implementing the suggested solutions, you can ensure your onboarding program remains efficient, effective, and adaptable to specific needs and resources. 

Remember, a successful onboarding process is an ongoing journey, not a one-time event. By continuously monitoring user behavior and iterating on your onboarding strategy, you can overcome roadblocks and create an exceptional onboarding experience that sets your users up for success.

What are some examples of successful customer onboarding in product-led companies?

Here’s a brief look at how several Pendo customers create effective in-app onboarding experiences with In-app Guides.

MagHub (Enterprise resource management):

• Problem: Complex platform with overwhelming onboarding needs for new users. The customer success (CS) team overloaded with basic training tasks.
• Solution: Automated in-app guides for basic functionalities, freeing up CS for strategic consulting. Guided homepage introduction, personalized quickstart checklists with walkthroughs, and reminder pop-ups ensure users complete the process.
• Result: Reduced onboarding time by half for CS and improved customer retention through user engagement.

ShippingEasy (Shipping and fulfillment):

• Problem: Time-crunched online retailers needed a faster way to learn the platform’s value.
• Solution: Interactive walkthroughs showcasing key tasks within the app—such as setting up orders—minimize learning time and maximize productivity.
• Result: Users can focus on fulfilling orders and growing their business, leading to increased platform adoption.

Oranj (Financial services):

• Problem: Low app retention due to users skipping welcome modals and getting lost in the app during onboarding.
• Solution: Personalized welcome modals based on individual use cases (managing investments or clients), improved modal design to increase engagement, and data-driven path recommendations based on successful users.
• Result: Enhanced user experience with higher retention rates through targeted onboarding and reduced churn.

SignalPath (Clinical trial management):

• Problem: Difficulty for users to find the right video tutorial for their specific task within a separate LMS (Learning Management System).
• Solution: Embedded video tutorials directly within Pendo guides, offering contextually relevant video walkthroughs based on user actions within the application.
• Result: Reduced user training time and frustration, improved user satisfaction, and streamlined clinical trial execution.

Pi Datametrics (Digital marketing):

• Problem: Manual onboarding and support processes couldn’t keep pace with frequent feature updates and rollouts.
• Solution: In-app guides for new features like the updated Position Explorer Chart, guiding users through new functionalities and highlighting key steps.
• Result: Increased feature adoption, improved user self-sufficiency, and reduced churn for users who completed self-service onboarding.

These examples demonstrate the power of tailoring onboarding to user needs and utilizing in-app guidance to drive product adoption effectively. Learn how with 5 great examples of in-app onboarding.

How can Pendo In-app Guides help my customers hit the ground running?

Pendo’s comprehensive onboarding platform empowers you to create personalized experiences that drive user adoption and satisfaction in five key ways:

1. Seamless in-app communication: Craft engaging tooltips, walkthroughs, checklists, and more to guide users through your product right when they need help.
2. Targeted user segmentation: Personalize onboarding experiences based on user roles, goals, and behavior for maximum impact.
3. Data-driven insights: Leverage user behavior data to understand your audience and tailor onboarding journeys for optimal results.
4. A/B testing and optimization: Continuously refine your onboarding flow with A/B testing to identify the most effective approaches.

By using these and other Pendo tools, you can transform onboarding from a hurdle to a launchpad for user success and product loyalty.

Where can I learn more about how Pendo In-app Guides?

Ready to take your customer onboarding to the next level? Take a tour of Pendo In-app Guides and learn how you can build 5-star customer onboarding experiences.