What customer onboarding metrics should you be tracking?
To ensure that your onboarding process is effective, there are a number of key metrics that you should monitor closely. This way, you'll keep clear from most customer success problems.
Churn rate is the percentage of users that stop using your product or service within a certain time frame. This is one of the most important metrics to track since it provides insight into whether or not your onboarding process is actually working. A high churn rate suggests that there's either a problem with your product or a problem with your onboarding process. Either way, you've got a serious issue that you need to fix quickly.
Customer Lifetime Value (LTV)
Customer lifetime value is the total amount of money that a customer will spend with your brand over their entire relationship. Tracking LTV helps you evaluate the effectiveness of your onboarding efforts, with a higher LTV indicating that customers understand and value your product.
Similar to churn rate, retention rate is the percentage of customers that are still using your product or service after a certain period of time. Tracking retention rates over time can help you identify areas where your onboarding process needs to be improved. For example, if a significant amount of churn happens within the first two weeks of signing up, that should be a key area of focus.
Net Promoter Score (NPS)
Net Promoter Score is an overall rating that considers how likely your customers are to recommend you. It's essential to get this customer feedback and monitor the results since customer referrals can be a significant revenue driver. A low NPS can be the result of a number of things, one of which is your onboarding process. If customers don't have success with your product, they're not going to recommend it to others.
Conversion Rate Of Free Trial To Paying Customer
If you offer a free trial period for your product, it's essential to track the percentage of users that end up converting from a free trial to a paid subscription. This can help you determine how effective your onboarding process is at encouraging conversions, and make necessary changes if the conversion rate isn't high enough.