{"id":283393,"date":"2023-12-01T15:43:11","date_gmt":"2023-12-01T15:43:11","guid":{"rendered":"https:\/\/wyzowl.com\/?p=283393"},"modified":"2024-04-19T14:01:53","modified_gmt":"2024-04-19T13:01:53","slug":"onboarding-user-retention","status":"publish","type":"post","link":"https:\/\/wyzowl.com\/onboarding-user-retention\/","title":{"rendered":"How Onboarding Optimises User Retention [UNIQUE DATA]"},"content":{"rendered":"
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Last updated on 1st December 2023<\/em><\/p>\n\n\n\n

In a world of infinite choice, brand loyalty is in short supply these days. But the payoff for nurturing loyal customers is massive. <\/p>\n\n\n\n

Because 61% of loyal customers will go out of their way to buy from their favourite brands<\/a><\/strong> and a similar number (60%) will buy from them more frequently, according to InMoment.<\/p>\n\n\n\n

And this is where customer onboarding comes in.<\/p>\n\n\n\n

Onboarding is all about giving your customers the best possible chance of getting the most out of your product or service. The better they understand it, the more useful it becomes. <\/p>\n\n\n\n

When you onboard well, providing ongoing training and support, your customers are far likelier to stick with you for the long-haul.<\/p>\n\n\n\n

<\/span>How onboarding optimises user retention – 5 statistics <\/span><\/h2>\n\n\n\n

In 2020 we carried out onboarding research<\/a> with a sample group of 216 people to find out more about their experiences as customers. We specifically wanted to know what role onboarding played in their experiences, how well brands are performing in that respect, and how they could do better. <\/p>\n\n\n\n

Here are the standout onboarding statistics to emerge from our survey, and what your business can learn from them\u2026<\/p>\n\n\n\n

1. Over 90% of customers feel that the companies they buy from \u2018could do better\u2019 when it comes to onboarding new users\/customers.<\/h3>\n\n\n\n
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Perhaps the most shocking takeaway from these onboarding statistics isn\u2019t that nine out of ten customers are only mildly satisfied with the onboarding experience they receive, but that they still<\/em> buy from these companies anyway. <\/p>\n\n\n\n

Which goes some way to explaining why 44% of businesses prioritise customer acquisition<\/a>, compared to just 18% that favour customer retention. But if ever there was an opportunity to blaze your own trail \u2013 this is it. <\/p>\n\n\n\n

An effective onboarding programme<\/a> can set your business apart from, well, most other brands it seems. And keeping your customers engaged is the best way to create loyal brand ambassadors. <\/p>\n\n\n\n

You\u2019ll not only reduce churn<\/a> (whenever you lose a customer, essentially), but you\u2019ll also avoid the expense of having to spend 5-25 times more to attract new customers<\/a> than retain your existing ones. <\/p>\n\n\n\n

Win-win.<\/p>\n\n\n\n

A major element of customer onboarding is to manage user expectations from the beginning. Ideally, you should give your customers a clear idea of your product\u2019s unique selling points and make their journey to proficiency as easy as possible. <\/p>\n\n\n\n

Language-learning app Duolingo does this brilliantly. Their secret sauce is a process of gradual engagement that reveals what users can expect before they\u2019ve even registered. <\/p>\n\n\n\n

Interrogating their customers\u2019 motivations from the outset also helps Duolingo to deliver a more personalised experience and allows users to set their own goals, making them far likelier to maintain their studies. <\/p>\n\n\n\n

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Duolingo\u2019s step-by-step demonstration of how their language classes work includes handy hints from their owl mascot to show how users are supported along the way.<\/p>\n\n\n\n

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Once the initial lesson is complete, students are rewarded with points and a free gift to maintain their interest. Duolingo also uses progress bars and rewards for \u2018streaks\u2019 (back to back lessons) to ramp up the engagement.<\/p>\n\n\n\n

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Then, and only then, are customers asked to create a profile. By which time they\u2019re already invested. It\u2019s subtle, fun and there\u2019s zero hard sell. That\u2019s some muy bien<\/em> onboarding right there! <\/p>\n\n\n\n

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2. 86% of people say they\u2019d be more likely to stay loyal to a business that invests in onboarding content that welcomes and educates them after they\u2019ve bought.<\/h3>\n\n\n\n
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Our onboarding research shows the vast majority of customers are willing to reward businesses that onboard well with their loyalty. <\/p>\n\n\n\n

Retaining customers is much like any other relationship; it takes a certain amount of effort and nurturing to keep it going. <\/p>\n\n\n\n

Closing the sale is just the beginning of the process. It\u2019s important to keep the dialogue open. Check in regularly to find out how things are going. Find out if there are any sticking points and offer solutions. And educate users about any new features you\u2019re launching, because the education process doesn\u2019t just apply to new users.<\/p>\n\n\n\n

The hard truth is if your customers aren\u2019t using your product, you\u2019re at risk of losing them. And fast. <\/p>\n\n\n\n

Consider this: 40-60% of software users will open an app once and never log in again<\/strong>, according to Groove HQ<\/a>. Which makes it essential to make the gap between sign-up and first success as short as possible. Step-by-step tutorials, unlimited support and good-old-fashioned encouragement all help towards achieving this goal.<\/p>\n\n\n\n

Reaching a blissful state of tranquillity does wonders for your mental health but it\u2019s not easy to achieve. Knowing this, and that it takes an average of 66 days to form a new habit<\/a> (not the 21-days we\u2019ve been led to believe), meditation app Headspace makes sure to check in with customers regularly to keep them motivated. <\/p>\n\n\n\n

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It\u2019s a great idea to reward your customers with added value from time to time. Something extra to remind them how awesome your brand is and why they chose it in the first place. Headspace does this with special offers that unlock added features, making their service that little bit more indispensable.<\/p>\n\n\n\n

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Referral incentives are a great way to leverage the goodwill of happy customers and grow your business. After 30 solid days of usage, Headspace can safely assume that a user is invested in their product. What better time to incentivise their latest brand advocate to share the love with one of their friends?<\/p>\n\n\n\n

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3. 8 in 10 users say they\u2019ve deleted an app because they didn\u2019t know how to use it.<\/h3>\n\n\n\n
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Our retention statistics prove that even if you\u2019ve got the best app \u2013 or any other product for that matter \u2013 known to mankind, if your customers don\u2019t understand how to use it, they won\u2019t stick around to find out. Nearly one in every two apps is uninstalled within 30 days<\/strong>, according to AppsFlyer<\/a>.<\/p>\n\n\n\n

But it doesn\u2019t have to come to that if you\u2019re willing to put the hard yards in.<\/p>\n\n\n\n

We expect a certain level of interactivity with apps. If that\u2019s your business, there are plenty of tricks you can use to keep your customers clued up. <\/p>\n\n\n\n

Simple setup wizards can be a great tool for getting customers started. Rather than leaving your customers with empty space to fill in, it\u2019s also good onboarding practice to fill \u201cempty states\u201d with actionable content that explains what information goes into that particular field. <\/p>\n\n\n\n

Email marketing platform Mailchimp prides itself in connecting businesses with \u201cthe right person at the right moment\u201d. Given that they\u2019re all about enabling customers to build email campaigns in minutes, you\u2019d expect them to follow up those claims with some intuitive user experience (UX) and crystal-clear tutorials.<\/p>\n\n\n\n

Spoiler alert: they do, and well.<\/p>\n\n\n\n

Mailchimp makes building your first email campaign super-easy. Their templates are instructional in their own right and encourage users to explore independently. <\/p>\n\n\n\n

This is a great example of how to empower customers with just enough information to be effective without spoon feeding them to the extent that they only develop a surface-level understanding of how your product works.<\/p>\n\n\n\n

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Pop-up tip banners, like the ones employed by Mailchimp, are a great way to drop knowledge and help a user to navigate your product. <\/p>\n\n\n\n

Notice how tips are purposefully short and to the point to keep things moving along smoothly and without overloading the user with too much information.<\/p>\n\n\n\n

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Churn is an inevitable factor of business that can\u2019t be stopped but can be reduced. Gathering valuable customer feedback is essential for improving your service. Mailchimp realises this fact. <\/p>\n\n\n\n

Whenever a customer deletes their account they cross-sell their simplified sister platform, TinyLetter, just in case the user found their experience overly complicated. They also ask for feedback about why their customer is cutting ties.<\/p>\n\n\n\n

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Of course, every departing customer calls your onboarding process into question. But if you follow Mailchimp\u2019s lead, you too can gather invaluable insights to sharpen your processes and turn a negative into a positive.<\/p>\n\n\n\n

4. More than half (55%) of people say they\u2019ve returned a product because they didn\u2019t fully understand how to use it.<\/h3>\n\n\n\n
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If there\u2019s one recurring theme to emerge from our onboarding research, it\u2019s that customers have a low tolerance for products that aren\u2019t particularly user-friendly or intuitive. It\u2019s therefore worth taking every step possible to make your product as accessible as possible.<\/p>\n\n\n\n

You can reduce the likelihood of returns, refunds and unnecessary administrative costs by giving your customers every opportunity to learn exactly how your product works \u2013 both new and existing customers. <\/p>\n\n\n\n

It\u2019s a great idea to think about possible customer pain points and ensure they never become an issue. Listen to customer feedback<\/a> and address any recurring queries with blog posts, answering frequently asked questions (FAQs), and circulating hints and tips in email newsletters.<\/p>\n\n\n\n

Not only does this approach empower your customers with the tools they need to proactively make the most of your product but, as an added bonus, you can relieve the pressure on your customer service team<\/a> too. <\/p>\n\n\n\n

The more hints and tips you can provide up front, the fewer queries they\u2019ll need to field from frustrated customers. <\/p>\n\n\n\n

5. Nearly two-thirds (63%) of customers say that onboarding \u2013 the level of support they\u2019re likely to receive post sale \u2013 is an important consideration in whether they make the decision in the first place.<\/h3>\n\n\n\n
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Don\u2019t underestimate the power of social proof<\/a> in any purchasing decision. Customer reviews can shed significant light, for better or worse, on how a brand supports its customers after a sale has been made. <\/p>\n\n\n\n

The obvious antidote is to make sure your customer onboarding is so good<\/a> that the glowing reviews roll in. But there are other measures you can take to demonstrate your onboarding brilliance too. <\/p>\n\n\n\n

Case studies and testimonial videos<\/a> from existing customers can help persuade new ones to come onboard and align themselves with your brand. <\/p>\n\n\n\n

You might even say they\u2019re a necessity given that retention statistics from HubSpot<\/a> reveal that 55% of consumers no longer trust the companies they buy from as much as they used to<\/strong>. <\/p>\n\n\n\n

Here\u2019s the thing: those loyal followers you\u2019ve cultivated through your onboarding are the perfect candidates for singing your praises. It\u2019s a cyclical process; the more you put in, the more you get back.<\/p>\n\n\n\n

This case study video<\/a> by Hootsuite below is a prime example of how to promote your services through the words of your customers. <\/p>\n\n\n\n

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