ON USER ONBOARDING: THE 7 STEPS APPROACH
Mastering User Onboarding: From First Moments to Lasting Engagement
Guiding Users Through the Cyclical Path of Value Discovery, Experience, and Adoption
Nailing user onboarding: The gateway to lasting impressions
In successful product management, the opening act matters more than you think. Whether it’s a captivating book or a promising product, the initial encounter leaves a lasting mark
The power of initial moments
The first few moments — they can captivate, intrigue, or disappoint. These seconds are the foundation upon which perceptions are built. This is the essence of user onboarding.
Ever noticed how first impressions echo across scenarios? Just like an awkward coffee date or a job interview, product experiences follow suit. The swiftness of decision-making based on these early interactions is a common thread.
In product success, that first interaction matters immensely. A poor initial encounter can prompt users to flee, taking their potential loyalty with them. Negative word-of-mouth might follow, casting a shadow on your efforts. Conversely, a strong beginning can pave the way for a flourishing product journey.
Product success begins with those first moments. Don’t underestimate the sway of initial interactions. Embrace user onboarding, decode its identity, and lay the groundwork for an irresistible user journey.
The core of user onboarding
Here’s the crux:
Your product’s growth hinges on those opening interactions
Defining user onboarding might seem straightforward, but it’s not. The problem lies with its vagueness and divergent interpretations which pose the challenge of achieving effective onboarding without aligning your team on its definition.
Think: Beyond the lightbulb moment
In the obsession with product success, the lightbulb moment has gained near-mythical status, symbolizing the instant users grasp a product’s essence. However, this is a misconception and a lightbulb moment does not exist, as discovering a product’s value is more than a singular revelation.
Contrary to popular belief, onboarding isn’t about a lone lightbulb moment. Successful users embark on a journey marked by a series of these revelations which may include:
- An initial website interaction and understanding of the product’s promises
- Exploring and finding utility after signing up
- Integrating the product into daily workflow for efficiency after multiple uses
- Sharing the product with colleagues for collaborative gains and becoming a social advocate for it
User onboarding and uncovering a product’s value isn’t a solitary event; it’s an evolving experience filled with multiple lightbulb or epiphany moments. The journey commences even before official sign-up, painting a comprehensive picture of the product’s value. In essence, the user onboarding journey is made of successive lightbulb moments. To succeed with products, ditch the notion of a single revelation, for a successful onboarding process should guide users through a sequence of these revelations.
Think: Beyond the signup mirage
User onboarding — it’s not just about signup, but an intricate journey that starts long before.
Let’s consider the Pirate Metrics Framework (AARRR) which is a structured model used to measure and analyze the different stages of a user’s journey in a business:
- Acquisition
- Activation
- Revenue
- Retention
- Referral
This framework identifies bottlenecks or areas for improvement and helps optimize strategies to enhance user engagement and business growth, particularly in the context of startups and online products.
- In the Acquisition step, users form their initial impressions, laying the foundation for a successful onboarding experience. Contrary to conventional wisdom, onboarding isn’t solely confined to the Activation Step. The Acquisition Step is crucial as that is the stage where we convey product positioning and value.
- The early moments matter and product marketing teams should not set unrealistic expectations through marketing hype.
- Sowing the seeds of future value is key. Having crystal-clear product positioning and messaging and a communication strategy that resonates with the right users and shapes their experience is key for onboarding.
- This means that cross-functional collaboration will be important. The symbiotic relationship between marketing, sales, and product teams will be key in refining user onboarding as alignment will ensure a consistent product narrative.
Therefore, user onboarding isn’t a single act; it’s a saga that unfolds across multiple stages. Successful onboarding spans across the Acquisition and Activation phases. Clear positioning and harmonious teamwork are the anchors of this voyage.
Think: Beyond the payment
In essence, user onboarding continues beyond the point of payment, striving to forge lasting connections and meaningful experiences. It’s a dynamic process that, when rightly understood, serves as a driving force in building thriving, engaged user communities.
- The belief that the user onboarding mission ends once the payment is made disregards a critical concern: Users might be paying for a product without actually experiencing its value.
- Let’s untangle the distinction between paying customers and successfully onboarded users. Paying customers is not necessarily synonymous with satisfied, engaged users. The trick lies in defining successful onboarding metrics and goals for product and onboarding teams, which transcends mere payment and embraces meaningful engagement. For example, Slack’s definition of a successfully onboarded team entails 2,000 messages, indicating that true onboarding success only emerges when teams have interacted extensively.
- The ultimate goal of user onboarding extends beyond mere conversion to paying customers. It strives to anchor users in a long-lasting relationship with the product. The culmination of the initial onboarding experience arrives when users extract meaningful value from the product, fostering the likelihood of sustained engagement.
Defining user onboarding
User onboarding is the journey that guides individuals from initial product perception — built proactively by product marketing — to immersive product experiences and eventual adoption of its value, resulting in tangible improvements to their lives
The heart of onboarding: Enriching lives through products
In user onboarding, the destination isn’t a mere transaction; it’s a transformation. It’s about moving beyond teaching users how to navigate our products and guiding them toward success and satisfaction.
- Beyond Teaching, and Toward Success: User onboarding is not a mere exercise in instructing users about the functionalities of a product. Instead, it’s an opportunity to unveil how our creations can propel users toward success and elevate their life experiences. The pivotal shift here is from teaching to enabling. It’s about showcasing how our products can be catalysts for users to achieve their goals and lead more fulfilling lives.
- Measuring Impact — Quality Over Quantity: Traditionally, the success of onboarding has been linked to the number of features users adopt. But let’s challenge this perception. True onboarding triumph isn’t about checkboxes ticked; it’s about the profound positive impact our products have on users’ lives. Rather than counting features, we should measure the degree to which our users’ experiences are transformed for the better.
- Focus on Value: Certainly, product features and characteristics matter. They form the bedrock of user experience. However, onboarding should extend beyond these traits. It’s not solely about showcasing what the product can do; it’s about illustrating the value it brings, the transformation it offers, and the doors it opens to a more enriched life.
How does your product contribute to enhancing users’ lives?
This is the question that should steer your onboarding strategy. Whether it’s the calming escape that Netflix provides after a hectic day or the seamless teamwork enabled by Slack, our products should be enablers of positive change.
Navigating the three key onboarding success milestones
Embarking on the journey of user onboarding demands a strategic approach, and success is marked by three pivotal milestones. These milestones encapsulate the moments when users perceive, realize, and adopt the value of a product:
- The Moment of Value Perception (MVP): The MVP signifies the instant users visualize how a product can address their needs within their context. It often occurs before the user signs up. This is the foundational touchpoint where users recognize the potential benefits a product can offer them.
- The Moment of Value Realization (MVR): The MVR is the point at which users experience a product’s value firsthand, achieving their desired outcomes. This moment is a critical turning point, as it solidifies the user’s understanding that the product can indeed fulfill its promises.
- The Moment of Value Adoption (MVA): The MVA symbolizes the transition when users not only experience value but also incorporate the product into their daily routine or workflow. At this juncture, the product transforms from an occasional solution to an integrated part of the user’s life.
These three moments weave together to form what can be termed a value path — a journey where users perceive, experience and internalize the value a product brings
- The Habit-Forming Challenge: Effective onboarding goes beyond the novelty of a product. It seeks to encourage users to relinquish old habits in favor of new behaviors enabled by the product. Forming habits around a product requires users to encounter value repeatedly. It’s through this repetition that users transition from sporadic engagement to habitual use.
In action, onboarding is more than an initial journey; it’s about guiding users toward adopting transformative habits with your product.
The value milestones pave the way, and
The habitual integration of your product into users’ lives defines the destination
Illustrating the value path for ChatGPT
The journey of user onboarding for ChatGPT, an AI-powered language model, follows a value path that helps users perceive, experience, and embrace the capabilities of the tool. Here’s how the value path for ChatGPT might look:
Moment of Value Perception (MVP)
Scenario: A user hears about ChatGPT’s ability to generate human-like text responses.
Action: They explore the ChatGPT website, read about its capabilities, and understand that it can assist in generating various forms of text content.Moment of Value Realization (MVR)
Scenario: The user signs up for a ChatGPT account and starts a conversation.
Action: As they interact with ChatGPT and receive coherent and contextually relevant responses, they experience firsthand its ability to generate human-like text that aligns with their input.Moment of Value Adoption (MVA)
Scenario: The user incorporates ChatGPT into their daily workflow.
Action: They use ChatGPT to draft articles, answer questions, brainstorm ideas, and even engage in creative writing. The tool becomes an integral part of their writing and communication process.Habit Formation and Ongoing Value (Post-MVA)
Scenario: The user’s reliance on ChatGPT continues and deepens.
Action: They consistently use ChatGPT to save time and improve the quality of their content generation. Over time, they become so accustomed to the tool’s assistance that it becomes a habitual part of their work routine.Sharing the Value (Advocacy Stage)
Scenario: The user finds value in ChatGPT and shares their positive experience.
Action: They recommend ChatGPT to colleagues, peers, and social networks, highlighting how the tool has enhanced their productivity and content creation efforts.In this value path, ChatGPT progresses from being a novel AI tool to an indispensable writing assistant. Users perceive its potential, experience its effectiveness, integrate it into their workflow, form a habit of using it, and even advocate for its value to others. The journey isn’t limited to the initial onboarding; it extends to becoming an integral part of users’ content creation process.
Managing the cyclical nature of user onboarding
User onboarding has long been regarded as a critical phase in the journey of introducing users to a product. However, there’s more to the story than just the initial interaction. In the realm of modern product management, it’s essential to recognize that user onboarding isn’t a linear path with a finite end. Instead, it’s a dynamic, cyclical process that keeps the momentum going long after the initial engagement.
- The Cyclical Nature of Onboarding: User onboarding doesn’t conclude after the first interaction; it’s a continuous loop of value discovery, experience, and adoption. This means that once users complete their initial onboarding, they enter subsequent cycles of uncovering more features and use cases, fostering deeper engagement and value realization.
- Navigating Friction for Value Achievement: Similar to a flywheel that needs effort to overcome inertia, user onboarding requires users to adapt to new ways, letting go of old habits. Consequentially, as users advance through each cycle, they gain momentum and derive greater value, making the process smoother and more rewarding over time.
- Fueling Revenue Growth Through Upselling: The process of onboarding users to advanced product capabilities isn’t just about enhancing their experience — it’s a revenue-driving opportunity. Therefore, by continually offering more value, product teams can inspire users to explore higher-priced tiers, boosting average revenue per user (ARPU) and contributing to overall revenue expansion.
- Anchoring on the Initial Onboarding: While advancing users to more capabilities is valuable, remember that completing the initial onboarding is a prerequisite for future cycles. The foundation set during the initial onboarding shapes users’ readiness to embrace subsequent cycles, ensuring a solid progression of value.
The essence of cyclical user onboarding lies in its enduring, evolving nature. It’s not just about helping users experience the initial value, but also about guiding them through a journey of continual improvement. The product manager’s role extends beyond the first impression; it involves nurturing an ongoing relationship with users. By embracing the cyclical nature of onboarding, you facilitate users’ ongoing value realization, leading to a more profound integration of your product into their daily routines.
The first cycle of user onboarding
Any flywheel movement demands that initial push to overcome the resistance of inertia and user onboarding is not different, particularly the first cycle for new users.
- Overcoming the Initial Hurdles: Just like a flywheel’s first turn, the inaugural cycle of user onboarding demands the most effort and time. The process of introducing users to your product and helping them experience its value for the first time is akin to providing that initial push. This involves identifying opportunities — areas where the product or user onboarding process can be improved to enhance the user experience which could include features, interactions, or aspects of the product that, if optimized, can provide greater value to users — and low-hanging fruit —relatively easy-to-implement improvements or changes that can yield significant benefits. These are enhancements that don’t require substantial effort but can have a noticeable positive impact on users’ perception of the product and their engagement with it — for enhancement.
- Unearthing Opportunities in the First Cycle: The initial onboarding phase is the best time to effectively capture users’ attention and keep them engaged. This phase is crucial for setting the tone of the user experience and building a strong foundation for continued engagement. Given the novelty and fresh engagement, users are more receptive to exploring the product. Optimizing their experience during this cycle lays the foundation for continued engagement and growth.
- The Anchor of Product-Led Growth: Mastering the art of initial user onboarding is a cornerstone of the product-led growth strategy. The success of the product-led growth approach hinges on creating a seamless and valuable initial onboarding experience. This experience sets the tone for users’ perception of the product and their likelihood to engage further.
The power of early user onboarding
We tend to consider a child’s early years as the bedrock upon which their entire future is built. Nourishment, care, and love during these crucial years shape a child’s potential. This holds for user onboarding too. Just as proper care forms the basis for a child’s growth, intentional onboarding sets the stage for long-term user engagement and satisfaction.
Research has shown that giving children the freedom to explore will develop their understanding and self-motivation extraordinarily. Similarly, effective user onboarding lets users navigate a product on their terms, fostering engagement and self-driven usage. This implies that the right methods and materials can unlock remarkable potential. Like child development and flourishing, proper onboarding can catalyze a user’s journey toward product mastery.
Effective onboarding can truly transform a user’s understanding and usage of a product. A product’s potential is best realized when users are onboarded with care, setting the stage for sustained and meaningful engagement
When it comes to product-led growth, user onboarding takes center stage as it directly influences a product’s performance and sets the tone for growth. Growth could be a conversational leeway to gain support for user onboarding within your team is crucial. Often, companies realize the importance of onboarding too late, hindering growth. By recognizing its significance, you ensure that your team invests the required time and resources into crafting an effective onboarding experience.
Unlocking growth: The power of effective user onboarding
In product-led growth, successful user onboarding transforms the ordinary into the extraordinary by enhancing retention, boosting revenue, and optimizing costs. By embracing onboarding, a product can pave the way for enhanced user engagement, fortified revenue streams, and exponential growth. Don’t underestimate its influence; instead, harness its potential to propel your product to new heights.
On-boarding impact 1: Elevating retention
With high retention rates, imagine customers not just making a one-time purchase, but returning time and again for more.
- Successful onboarding equals happier customers, leading to higher retention rates. Companies that master this art find their customers’ lifetime value (CLV) soaring, creating a domino effect on overall revenue.
On-boarding impact 2: Catalyzing revenue — from onboarding to multiplying returns
Imagine onboarding as a secret recipe for revenue multiplication. By crafting an exceptional onboarding experience, you’re setting the stage for a profound financial impact.
- Enhanced onboarding drives better retention, and better retention leads to increased revenue. The math is simple, yet the results are astounding.
- Bolstered by the revenue-multiplier effect, improving onboarding directly fuels growth. Small changes can lead to substantial leaps in recurring revenue over time.
On-boarding impact 3: unveiling cost-efficiencies — onboarding vs. customer acquisition costs (CAC)
Effective onboarding isn’t just about boosting revenue; it’s about optimizing costs too. A seamless onboarding experience doesn’t just retain customers; it reduces the cost of acquiring new ones. By ensuring customers stick around, you’re curbing the financial strain of constantly chasing new prospects.
- Streamlined onboarding directly lowers customer acquisition costs (CAC), offering an efficient growth path. Improved retention and conversion rates are the unsung heroes of budget management.
Overcoming challenges of user onboarding for sustainable growth
A robust onboarding strategy requires clear ownership, collaboration among diverse teams, shared definitions, measurable success metrics, and a well-crafted continuous improvement plan. By acknowledging and overcoming challenges, onboarding will set the stage for amplified user engagement, sustainable growth, and lasting impact.
i) Lack of clear ownership: The conundrum of responsibility
The absence of a clear owner or champion for the onboarding experience leaves it adrift. When no team or individual takes ownership, onboarding becomes a vague task, resulting in haphazard execution or, worse, neglect. The implications are significant — an overlooked onboarding process may languish, missing critical opportunities for improvement. The outcome? Delays in enhancing the user onboarding process, ultimately impact user satisfaction and engagement.
ii) Sole focus on the product team: A siloed approach
One common myth that encircles user onboarding is that it’s solely the responsibility of the product team. This misconception undermines the collaborative nature of effective onboarding. Successful user onboarding is a multidimensional effort, involving a symphony of departments including sales, marketing, product, and customer success. Focusing solely on the product team’s involvement narrows the perspective and limits the potential for creating a comprehensive and impactful onboarding experience. The outcome is a disjointed onboarding journey that fails to align with the broader user journey.
iii) Misaligned definitions across teams: Lost in translation
Picture a rowing team, each member paddling in different directions. This is what transpires when various teams perceive user onboarding differently. Misaligned interpretations create confusion and hinder a harmonious and coordinated approach. Without a shared understanding, onboarding experiences vary, and users encounter inconsistencies, leading to frustration and hesitancy in adopting the product fully. To overcome this challenge, a united definition of user onboarding across teams is paramount.
iv) Lack of clear success criteria: A metrics dilemma
Determining the success of user onboarding is like embarking on a journey without a destination in mind. The absence of clearly defined, quantitative criteria for measuring the effectiveness of onboarding makes it challenging to evaluate its impact accurately. A significant dilemma arises: How can you gauge if users have been effectively onboarded? The repercussions are far-reaching — without an established benchmark, efforts to optimize onboarding may be in vain, hindering long-term user engagement.
v) Absence of continuous improvement strategy: A perilous path
Improving user onboarding isn’t a one-time affair, nor is it solely about superficial fixes like product tours or introductory emails. Relying on ad hoc tactics leads to inconsistent and potentially frustrating experiences. A cohesive strategy is essential, driven by user research and data-driven insights. The danger lies in neglecting this crucial aspect — users may be alienated by subpar onboarding methods, leading to waning engagement and retention rates.
The 7 steps approach to user onboarding
Step 0: From First Moments to Lasting Engagement
Step 2: Understanding the users
Step 3: Defining success and its milestones
Hope you found this article useful!
If so, then:
- Follow me on Medium
- Become a Medium Member
- Subscribe to hear more
- Let’s connect on LinkedIn
