This is the beginning of a series on onboarding metrics. Each article will focus on 1 to 3 metrics you could be tracking for your SaaS onboarding flow. We’ll look at what they mean, and how to make positive changes to impact each one.
Today, we’ll start with 2: conversion rate and drop-off rate.
Conversion rate
First, we’ll look at conversion rate. Assuming your SaaS offers a free trial, conversion rate refers to those that successfully move to a paid subscription.
Conversion rate is not only valuable for the sales and marketing team to track. Onboarding can have a big impact on whether a customer will convert into a paid user. It can be an important indicator of how successfully an onboarding flow guides users from discovery to adoption.
When conversion rate is high, it can be an indicator that the onboarding process clearly communicates your value prop. It can indicate whether your product addresses the user’s needs (aka pain points). It can also speak to whether your product demonstrates enough value for the user to commit to a paid subscription.
A lower conversion rate could indicate that your onboarding experience is not optimal. Users might not understand the value of your product during onboarding, and therefore are not convinced to purchase.
Improve conversion rate
Research is always the first step before making changes. Here are some potential solutions to consider for improving conversion rate:
- Educational email series
- Product tour/walkthrough
- Add progress indicators
- Streamline the onboarding flow
Drop-off rate
Next, we’ll look at drop-off rate. Drop-off rate is the percentage of users who start the onboarding flow, but stop before fully onboarding to your product. It’s helpful to track not only drop-off, but also where they drop-off. This can help you identify friction points in your flow. i
If the majority of your drop-off is happening at a particular step, it could indicate that the UI or content at that step should be revisited. Or, it could also indicate the need for user education at that point in the onboarding process.
Improve drop-off rate
Here are some potential solutions for improving drop-off rate:
- Improvements to the UI and content design
- Education and in-app contextual help
- Simplify the number of steps users must take to go through onboarding
Complicated steps can lead to more drop-off
I worked with one SaaS company that was experiencing significant drop-off occurring at one particular step in their onboarding process. Watching user recorded sessions revealed that not only did several users drop-off at that point in the flow, but users who did continue past that step often hesitated before moving forward.
In reviewing the flow, it was clear that there was confusing content. I updated the content within the flow, including implementing a tooltip. After implementation, we saw lower drop-off rates. While it might seem like magic, when you understand the logic behind it, it’s actually quite scientific!
Which onboarding metrics will you start tracking today?
If you’re not already tracking onboarding metrics for your SaaS product, which ones will you start tracking today? A great place to start is conversion rate and drop-off rate. Want to know some others you should be tracking? Stay tuned for part 2 of this series. Or, feel free to reach out for a custom walkthrough of your onboarding experience.