# How to Optimize User Onboarding for Better Retention

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## Table of contents

- What is user onboarding?
- Types of user onboarding
- Elements of a good user onboarding experience
- How to know if your user onboarding flow is working
- User onboarding best practices
- Conclusion

The first interaction of the user with the product is a major factor in deciding whether they’ll stick around or drop off.

This is why providing a good user onboarding experience is of utmost importance. A smooth and intuitive onboarding experience helps users quickly discover the product’s value.

In this article, we’ll understand the importance of a well-designed **user onboarding** experience for a SaaS company and share practical tips, tools, and best practices to improve the onboarding experience.

## What is user onboarding?

**User onboarding is the process of introducing new users to a product in a way that helps them quickly understand its functionality, see its value, and begin using it effectively.**

## Types of user onboarding

Some tools need minimal guidance, while others require a more hands-on approach to ensure users get value depending on the complexity of the features they offer. This gives rise to the two main types of onboarding. Let’s take a look at both of them.

### 1. Self-serve onboarding

In self-serve onboarding, the users begin using and exploring the product on their own, without any manual intervention. The onboarding experience is built into the product itself through interactive walkthroughs, tooltips, onboarding checklists, and [welcome emails](https://www.mailmodo.com/guides/welcome-email/) that help users discover features step by step.

Self-serve onboarding works best for products that are simple, intuitive, and designed for users to explore independently. It’s also found more common in products with the following models.

Freemium model: Products that offer a free plan and allow users to use the core features of the product.

Free trial models: Products that offer a limited time free trial to allow users to experience the features of the product.

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### 2. Assisted onboarding

In this model, dedicated teams or representatives from sales or [customer success](https://www.mailmodo.com/guides/ai-tools-customer-success/) take the customers through the product features.

They also tailor the onboarding experience to the specific needs of the customer. This personalized attention helps overcome implementation challenges and addresses technical questions in real-time.

The goal is not only to train users on the product but also to integrate the tool into their daily operations efficiently and effectively.

Assisted onboarding is ideal for complex SaaS products that require more personalized support, such as those with advanced use cases or multiple stakeholders. It's commonly used in enterprise software, trials, or proofs of concept (POCs).

<div class="highlight-gray">
  <p>
    <strong>💡 Related guide:</strong>
    <a href="https://www.mailmodo.com/guides/onboarding-emails/">A Complete Guide to Creating Engaging Onboarding Emails</a>
  </p>
</div>

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### Which type of user onboarding should you choose?

The ideal user onboarding type for you depends on your specific requirements, the kind of customers you have and the features your product offers.

As we discussed, if you have a complex product with features that are not commonly found in other similar products or have high-ticket clients who would be looking for a more personalized experience and manual attention, assisted onboarding is the right choice for you.

But if your product is simple and easy to use, doesn’t have a steep learning curve and offers features that are easy to understand and if you cater to low-ticket clients, you can opt for self-serve onboarding.

However, it’s best to go the hybrid mode if you can. Take Mailmodo, for instance. Mailmodo offers both self-serve and assisted onboarding based on customer needs. Some customers sign up automatically and onboard themselves using a self-serve process with no direct sales interaction.

For larger or enterprise accounts, personalized onboarding with dedicated support is provided to ensure a smooth transition and fast value realization. This dual approach ensures users receive the appropriate level of assistance.

## Elements of a good user onboarding experience

Just because you have set up the user onboarding experience doesn’t make it a good one. A great onboarding experience guides users while allowing them to explore the product, ensuring clarity and progress. Key elements of a good user onboarding experience include:

-   **User detail collection:** Ask for minimal information upfront (e.g., name, role, goals) to personalize the experience without overwhelming users.
    
-   **Product education:** Use in-context walkthroughs, tooltips, and modals to teach users as they interact with the product.
    
-   **Quick setup:** Make it easy for users to import data, integrate tools, and customize settings.
    
-   **Helpful resources:** Provide FAQs, videos, and [chatbots](https://www.mailmodo.com/guides/ai-chatbot-tools/) within the app for easy access to support.
    
-   **Clear next steps:** Use checklists or progress bars to show users their progress and what to do next.
    
-   **Feedback:** Collect insights early through surveys or exit forms to identify and address user pain points.
    

## How to know if your user onboarding flow is working

Measuring the success of your onboarding experience is crucial to ensuring users are effectively adopting your product.

### Key metrics to track

Once you’ve set up your user onboarding flow, you must track the right metrics to make sure that it’s actually working. Here are some key metrics you should look at:

  

-   **Time-to-value (TTV):** This metric tracks how quickly users achieve their first meaningful success with your product. A faster time-to-value indicates that your user onboarding is guiding the users in the right direction.
    

  

-   **Activation rate:** This measures the percentage of users who complete key onboarding actions, such as setting up an account or using a core feature. Actions vary from product to product and depend on what kind of product you have and what features it offers.
    

  

-   **Onboarding completion rate:** This tracks how many users finish key steps in the onboarding process, such as completing tutorials or guided tours. A high completion rate indicates a smooth, engaging onboarding flow.
    

  

-   **Cohort stickiness:** This measures how often users return after their initial engagement, whether it’s after a day, week or month. A shorter interval indicates a better user onboarding experience.
    

### How to measure user onboarding metrics

To effectively measure onboarding success, you’ll need the right tools to track user behavior. Here are some tools you need and what you can do with them:

-   **Product analytics:** Tools like Mixpanel, Amplitude, and Heap allow you to track user behavior through funnels, identifying where users drop off during the onboarding process and which steps are more engaging.
    
-   **Session replays:** Session replay tools like Hotjar or FullStory allow you to watch replays of how users navigate your onboarding flow. This helps identify friction points and optimize the overall user onboarding experience.
    
<div class="highlight-gray">
  <p>
    <strong>💡 Related guide:</strong>
    <a href="https://www.mailmodo.com/guides/saas-onboarding-software/">12 Best User Onboarding Software for SaaS</a>
  </p>
</div>

### How often should you track these metrics?

The most important time to track these metrics is right after launching a new onboarding flow. You can track metrics daily — especially to catch early bugs, drop-offs, or confusion.

If you’re running [A/B tests](https://www.mailmodo.com/guides/ab-testing-statistics/) or experimenting with small changes, weekly or bi-weekly reviews work best to understand short-term impact.

For big-picture insights, monthly check-ins help identify long-term trends in retention, adoption, and [engagement](https://www.mailmodo.com/guides/customer-engagement-examples/).

The frequency ultimately depends on how often your product changes and how volatile your audience behavior is.

## User onboarding best practices

A good user onboarding flow improves the stickiness of your product. Here are some best practices to keep in mind when designing a good one.:

-   Deliver value early by surfacing the most relevant features or actions right after signup.
    
-   Remove friction by fixing steps where users commonly get stuck or drop off.
    
-   Use a multi-channel approach by combining in-app guidance, emails, videos, and occasional calls.
    
-   Make support easy to access with visible live chat, AI agents, or a built-in help center.
    
-   Iterate continuously by running A/B tests and refining the flow based on real user data.
    

## Conclusion

A well-designed user onboarding experience can make or break the user’s journey with your product. It’s not just about guiding them through features, it’s about helping them find value quickly and effortlessly.

Remember, onboarding isn’t a one-time event. It’s a continuous process that evolves with your product and users. Keep tracking, testing, and iterating to make sure your onboarding flow stays effective and user-centric.

## Frequently Asked Questions

### Why is onboarding important for customer retention?


Onboarding sets the tone for the entire user experience. A positive, helpful onboarding process increases the chances of users understanding the product’s value early on, which directly impacts their decision to stick around and keep using it.


### How can I improve my product’s onboarding flow?


Start by identifying friction points using product analytics and session replays. Simplify setup steps, highlight key features early, and personalize the experience based on user goals. Continuously collect feedback and iterate based on user behavior data.


### Can onboarding be automated?


Yes. You can automate parts of onboarding using in-app walkthroughs, tooltips, email sequences, and onboarding checklists.


### What tools can I use for SaaS user onboarding?

Tools like Mixpanel, Amplitude, and Heap help with analytics, while Appcues, Userpilot, and WalkMe enable interactive, in-product onboarding experiences.

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---

**Author: Mashkoor Alam**

Mashkoor has always been passionate about writing. He used to write short stories on his blog before he started writing for SaaS companies years back. He aspires to have a book under his name.

