SaaS customer onboarding is an interesting topic for the first time SaaS entrepreneur...
As you start building your SaaS company you think, eat and dream about acquiring new customers. You make cold calls, you send thousands and thousands of e-mails, you demo your product, you pitch left and right and eventually you start hiring while you hustle trying to survive.
Without a new business sales methodology and a product-market fit you won’t scale your Saas business – but at the same time, you know that sustainable SaaS growth comes from maximizing the lifetime value of existing customers. Growing the lifetime value of your customers starts with a well thought through Onboarding process.
The importance of the onboarding process can not be stressed enough. Onboarding is one of those things that people in SaaS know is important but tends to procrastinate because they don’t see the effect right away.
There are many reasons why having a solid onboarding process is important for your SaaS business, here are three of them:
1. It’s the foundation of success
First of all, a solid SaaS customer onboarding process is the very foundation of success. You made promises to your client during the customer acquisition phase of the value you plan to deliver. Now it’s time to meet those expectations and keep their excitement up.
2. You need to clarify expectations
To minimize future churn risk you need to set the right expectations to your new customers.
During the onboarding phase, you have an excited customer that (obviously) have committed themselves to sit down with you to get the most out of their investment.
The onboarding phase gives you a great chance to clarify and set the right customers expectations on your product. Take the chance to describe what your product does (and more importantly) what it doesn't. This is a critical to-do for the future success of the renewal.
3. You need loyal customers
There are studies suggesting that if a user is not loyal to your product within the first three months, there is only a 10% chance she will ever be.
… so make sure you create champions in the first 90 days!
Also, make sure you monitor usage trends so that you engage users that aren’t using your product.
Here is a good article that describes a successful welcome e-mail which is one of the first to-dos for most of our customers.