Onboarding is a process which users have to go through when they want to try out a new online service. Let’s consider a website or an app; the onboarding process is designed to introduce new users to a particular website, or an application, to help them get started as swiftly as possible. It is through this process that you can learn about the needs and wants of your users, and therefore use this information to provide them a personalized experience.
Ever since the advent of SaaS, the need for providing an excellent user experience has gained prominence over all other things. A smooth user onboarding experience helps you to gain the trust and loyalty of your users, increase customer retention rates, and help you stand out in your industry.
As more and more SaaS companies realize the importance of providing a streamlined user onboarding experience to their users, they are shifting and continuously improving their onboarding process to make their audience feel right at home from the very beginning. You, yourself, may be wondering whether or not you need to implement a user onboarding flow into your website or app.
In this blog, we will reveal some of the most obvious indicators that point out the need of an onboarding process; so if you spot any of the following, you really need to consider making things easier for your users.
8 Indicators That Highlight the Need of Improved Onboarding Process
The 8 indicators are as follows:
- Low Trial Conversion Rates
- High Bounce Rates
- Low Number of Page Views and Reduced Time Spent on Each Page
- Excessive Queries Asking for Instructions
- Large Quantity of Emails Asking For Instructions
- Low Word-of-Mouth Marketing Results
- Low Life Time Value of the user
- High Cost to Acquire Customer
We will now look into each of these indicators in greater detail.
Low Trial Conversion Rates
High Bounce Rates
Low Number of Page Views and Reduced Time Spent on Each Page
Excessive Queries Asking for Instructions
Huge Number of Emails Asking For Instructions
Low Word-of-Mouth Marketing Results
Low Life Time Value of Users
High Cost to Acquire Customer
A number of SaaS companies offer free trials to allow visitors to ‘test drive’ their service before purchasing it. When it comes to offering a free trial, some companies have failed outright, while others think it is a bad idea to add an extra month or two to their sales cycle. Then, there is a third group that offers free trials, but doesn’t see the expected results. So, what went wrong?
The most likely reason for a low trial conversion rate (the rate at which trial users convert and become paid users) is that the trial offered didn’t give users the value they expected.
The bounce rate of a website refers to the percentage of people who leave your website after viewing only a single page. The importance of bounce rates varies depending on the type of website. For SaaS companies, the bounce rate is crucial. A high bounce rate indicates that the visitors aren’t getting what they came for.
To reduce the bounce rate, users should be offered value as quickly as possible without wasting their time or confusing them.
There is no doubt that the higher the number of page views, and the greater the time spent on your website, the better it is. Unfortunately, if your website is experiencing the opposite – there’s something seriously wrong with the way you are delivering your services to the visitor.
In order to provide an optimum user experience to your visitors, you have to grab their attention and provide them with the information that they need with the least number of clicks. Thus, if your Google Analytics account shows that the Average Time on Site to be low – think about streamlining things.
One of the most prominent indicators that points towards the need for a user onboarding process is an overburdened support manager. If your support manager is getting hoards of queries asking for instructions – whether that be to do with the site or the service that you offer – then your site is hard to navigate and users are having a hard time getting to the point where they can use your service.
If left unattended, this issue can lead to increased abandonment rates which will likely result in a considerable decrease in sales.
Your support department may also be getting lots and lots of emails asking for instructions. This indicates that something is seriously wrong with your user interface. SaaS platforms must have a straightforward, uncluttered and easy to use interface that is self-explanatory. If there’s any room for confusion, then you should provide guidance then and there for visitors so they do not get lost.
Depending on how good of an experience you offer to your consumers, they can become your business’s advocates and spread the word about how good (or bad) your service is. This is actually a great way for awareness of your services to get spread. Statistics show that more people are likely to use a service if their friends recommend it. Therefore, word-of-mouth marketing is a powerful tool which many businesses utilize. All it takes is that you provide your users a GOOD experience – the rest will be up to them!
Fewer recommendations from people often means that they are not satisfied with your service enough to recommend it to others. This should certainly raise an eyebrow.
Low life time of users, and high Churn rates are major indicators that reveal the quality and the value being offered to consumers. Customers that do not find a solution to their problems will leave your service. One of the major causes of a low Life Time of users is that it takes a significant amount of time to reach the point where value is given to them.
For instance, your signup process may be too long and inefficient. There may be too many steps involved before your users get to use the service. All of this will make them drop off and try other options.
It can cost 5 times as much to acquire a new customer than it does to retain an old one. Thus, if you’re suffering from low trial conversion rates, you’ll have to incur a high cost to acquire new customers. The customer acquisition cost (CAC) is a measure of the efficiency of your sales and marketing teams. If either of these teams fail to do their job properly by helping to convert trial users into paid ones, the cost will continue to increase.
Ultimately, the blame should fall on a failure to deliver value and experience that the customer was expecting.
The 8 indicators mentioned above are some of the major reasons that imply that your website needs a streamlined user onboarding process. By implementing such a flow, you’ll be able to do away with the majority of problems that haunt SaaS companies, and will be on your way to securing a solid user base.
What other indicators are there which emphasize the need for an efficient onboarding process? Leave a comment now to tell us what you think.