8 SaaS Onboarding Metrics to Track in 2024
November 2024
Want to boost customer retention and set your SaaS business up for growth? It all starts with onboarding. Here are 8 key metrics to watch:
- Time to First Value (TTV)
- User Activation Rate
- Core Feature Usage
- Trial to Paid Conversion
- Daily and Weekly Usage
- Support Tickets per User
- NPS During Onboarding
- Early Customer Loss Rate
Why track these? They help you:
- Spot issues in the user experience
- Set realistic goals for customer success
- Personalize and improve your product
Let’s break down each metric and how to use it.
Quick Comparison:
| Metric | Why It Matters | Industry Average |
|---|---|---|
| Time to First Value | Faster TTV = higher satisfaction | Varies by industry |
| User Activation Rate | Shows onboarding effectiveness | 36% |
| Core Feature Usage | Indicates real engagement | 28% feature adoption |
| Trial to Paid Conversion | Reveals product value | 14-25% for B2B |
| Daily/Weekly Usage | Shows product "stickiness" | 13% DAU/MAU for SaaS |
| Support Tickets per User | Highlights onboarding friction | $15 avg. cost per ticket |
| NPS During Onboarding | Early indicator of satisfaction | 36 for SaaS |
| Early Customer Loss Rate | Red flag for onboarding issues | 3-5% monthly churn is good |
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1. Time to First Value
Time to First Value (TTV) is how fast new users get the main benefits of your SaaS product. It’s the time between sign-up and when they first see real value. In SaaS, a quick TTV can make or break customer relationships.
Why does TTV matter? Simple: users who see results faster tend to stick around. Data shows that shorter TTVs can boost customer satisfaction by up to 20%. This leads to better retention and less churn.
Let’s look at some real examples:
When Notion AI launched on Product Hunt in March 2023, they got 11,000 upvotes in 24 hours. Daily sign-ups jumped from 5,000 to 20,000 for the next week. Why? They focused on giving new users quick value.
It’s good to know how your TTV compares to others. Here’s a quick look at average TTVs in different SaaS areas:
| Industry | Average TTV |
|---|---|
| CRM & Sales | 1 day, 4 hours, 43 minutes |
| Martech | 1 day, 20 hours, 47 minutes |
| HR | 3 days, 18 hours, 59 minutes |
These numbers show that TTV expectations can vary. A CRM tool might aim for almost instant value, while an HR platform can take longer.
How to improve your TTV:
- Make onboarding smooth. Use interactive guides to help users set up and learn key features.
- Personalize the experience. Adjust onboarding for different user types.
- Go for quick wins. Show off features that give instant value.
- Keep supporting users. Put a help center in your app so users can get help without leaving.
- Keep measuring and improving. Track your TTV and work on making it better.
"The first 30-90 days of a customer’s experience fully dictates the lifecycle of their account." – Liam Feldstein, senior Customer Success leader
The point isn’t just to lower TTV for the sake of it. It’s about helping users quickly see why your product is great.
"The shorter the time frame is to reach value, the more likely you are to retain a user and avoid customer churn." – Chameleon Team
2. User Activation Rate
User activation rate shows how many new users complete key setup steps and hit their "aha moment" with your SaaS product. It’s a key indicator of your onboarding process and how fast users find value in what you offer.
The average activation rate for SaaS companies? 36%. But the best product-led growth companies? They’re shooting for 40% or higher. That means even top products struggle to activate more than half of their new users. So yeah, this metric matters.
Here’s how to calculate it:
Activation Rate (%) = (Users Who Reach the Milestone / Total New Users) x 100
Let’s say a task management tool gets 1,000 signups. If 300 users create their first project, that’s a 30% activation rate.
Why should you care? Here’s what Lenny Rachitsky, a big-name angel investor, says:
"Increasing activation rate is one of the highest-leverage growth levers across most products, and it’s often the single best way to increase your retention."
And get this: bump up your new user activation by 25%, and you could see a 34% jump in monthly recurring revenue (MRR). That’s serious cash.
Want to boost your activation rate? Try these:
- Make onboarding simple. Guide users to their first valuable action, fast.
- Personalize the experience based on user roles or goals.
- Show value early with interactive demos or product tours.
- Give users options to learn: articles, videos, interactive guides.
- Keep testing your onboarding. What works best for your users?
Here’s a real-world win: Trainual, an employee training software, tested videos against an interactive demo in their activation process. The results?
- 450% more free trial signups
- 100% more users hitting activated trial status
- 175% boost in users becoming paying customers
That’s the power of focusing on activation.
What counts as "activation" depends on your product. It might be adding a first contact in a CRM, setting up a store page, or finishing a first workout in a fitness app. The key? Pinpoint the actions that show a user has really experienced your product’s core value.
3. Core Feature Usage
Core feature usage shows how many users actually use your product’s main functions. It’s not just about sign-ups – it’s about real, meaningful engagement.
Here’s a shocking stat: the average feature adoption rate for B2B SaaS products is only 28%. That means most of your features might be collecting digital cobwebs.
So, how do you make sense of core feature usage?
First, calculate your Feature Adoption Rate:
(Number of users using a feature / Total number of users) x 100
Got 1,000 users and 400 use your chat feature? That’s a 40% adoption rate.
But adoption isn’t a one-and-done deal. It’s a journey:
- Users learn about the feature
- They see its value
- They try it out
- They keep coming back
Track each stage to spot where users drop off.
Also, look at how long it takes users to start using a feature after they first see it. This "time-to-adopt" can tell you a lot about how user-friendly and valuable your features are.
Don’t just count clicks. Dig deeper:
- What percentage of users use each feature?
- How often do power users engage with key features?
- Which features keep users coming back daily?
You’ll need some tech muscle to gather all this data. Tools like Mixpanel, Amplitude, and Pendo can give you the nitty-gritty on user behavior.
Once you’ve got the data, put it to work:
- Highlight underused features with in-app notifications or emails
- Create guides for complex but valuable features
- Consider axing or revamping features that nobody uses
- Beef up your most popular features
The endgame? Features users can’t live without. As Brian Balfour, former VP of growth at HubSpot, puts it:
"If your retention is poor, then nothing else matters."
4. Trial to Paid Conversion
The trial to paid conversion rate shows how many free trial users become paying customers. It’s a key metric that reveals your product’s value and how well your onboarding works.
Here’s the formula:
Trial to Paid Conversion Rate = (Number of trial users who convert to paid / Total number of trial users) x 100
Let’s say you have 500 trial users and 90 become paying customers. Your conversion rate? 18%.
Industry benchmarks vary a lot:
| Trial Type | Average Conversion Rate |
|---|---|
| Opt-in trials | 18.20% |
| Opt-out trials | 48.80% |
| B2C companies | 57% |
| B2B companies | 14-25% |
Opt-out trials (where users must cancel to avoid charges) tend to convert better. But watch out – they can lead to higher initial churn if users forget to cancel.
Here’s a real-world example:
"Customer.io saw an average conversion rate of about 8% back in 2014, while Moz converted about 56% of free users in 2012", shares Maggie Paveza, Strategist at The Good.
Want to boost your trial to paid conversion rate? Try these tactics:
Make onboarding smooth. Get users to their "aha moment" fast. Zoom, for example, focuses on helping new users have their first successful meeting without hiccups.
Offer upgrades at the right time. Prompt users to upgrade when they hit usage limits or try premium features.
Help users help themselves. Build a solid knowledge base so users can solve problems on their own.
Use clear CTAs. Put consistent, eye-catching calls-to-action throughout the user journey to encourage upgrades.
Create a sense of urgency. Keep users aware of how much trial time they have left to prompt action.
But remember, it’s not just about getting users to pay. It’s about making sure they see real value in your product. As Toplyne’s blog puts it:
"To avoid disappointing customers, develop an intimate understanding of their needs."
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5. Daily and Weekly Usage
Tracking daily and weekly usage shows how often users engage with your SaaS product during onboarding. It’s not just about login numbers – it’s about meaningful engagement.
Daily Active Users (DAU) and Weekly Active Users (WAU) are key metrics. But what counts as "active"? It depends on your product. For a project management tool, it might be creating tasks or updating project status.
Here’s a wake-up call: the average feature adoption rate for B2B SaaS products is only 28%. That means most of your features might be collecting dust. By watching daily and weekly usage, you can spot which features are hits and which are misses.
Let’s look at some numbers:
| Metric | Average | Top Performers |
|---|---|---|
| DAU/MAU Ratio (SaaS) | 13% | 20%+ |
| DAU/MAU Ratio (B2C Apps) | 20-50% | 50%+ |
The DAU/MAU ratio shows your product’s "stickiness." Higher is better – it means users are coming back more often.
Want to boost your usage metrics during onboarding? Try these:
- Highlight core features: Show new users the good stuff first. Zoom gets users into video calls fast, hooking them from day one.
- Make it personal: Tailor onboarding to user roles or goals. It’s like a custom-fit suit – more likely to be worn.
- Nudge users: Use notifications to bring users back. Dropbox does this by asking users to upload files or invite friends.
- Spot the drop-offs: If users ghost you after day three, your onboarding might need a tune-up at that point.
- Set realistic goals: Your usage targets should match your product. A daily task app should aim higher than a monthly reporting tool.
Remember, it’s not about inflating numbers. As Gift "Gigi" Kenneth, a Machine Learning Engineer, says:
"DAU turns out to be a very handy metric to monitor engagement."
The real goal? Make sure users get consistent value. High usage during onboarding often leads to better retention and more paid conversions down the road.
6. Support Tickets per User
Tracking support tickets per user during onboarding shows how well your SaaS product guides new users. It’s not just about numbers – it’s about spotting where users get stuck and smoothing out their journey.
Here’s the deal: Intercom’s Customer Service Trends Report found that 36% of support leaders see "managing conversation or call volume" as a big challenge for 2023. That’s a lot of teams swamped with support requests.
Why does this matter for onboarding? High ticket volumes during onboarding often mean users are struggling right from the start. And a rough start can lead to churn faster than you can say "Hello, IT."
Let’s look at some numbers:
| Metric | Impact |
|---|---|
| Average cost per ticket | $15 |
| Customers preferring self-service | 40% |
| Customers who might leave after one bad experience | 61% |
These stats tell a clear story: fewer support tickets means happier customers who stick around longer.
So, how do you keep those ticket numbers down? Here are some tried-and-true tactics:
- Build a solid knowledge base: Let users help themselves. Dropbox’s Help Center is a great example, covering everything from basic setup to power user tricks.
- Use in-app guidance: Add tooltips and walkthroughs to guide users in real-time. Slack‘s onboarding is top-notch, gently showing users the ropes without overwhelming them.
- Make it personal: Tailor your onboarding to different user types. Zoom changes its onboarding based on whether you’re joining for work or personal use.
- Offer support everywhere: Give users options for getting help. Intercom found that multiple support channels can really cut down on tickets by letting users choose how they want help.
- Get smart with automation: Set up auto-responses for common questions. But do it right – HubSpot’s chatbot knows when to bring in a human, so users don’t feel like they’re talking to a wall.
The end game isn’t just fewer tickets – it’s creating an onboarding experience so smooth that users don’t need to reach out at all. As Pulkit Agrawal, CEO and Co-Founder of Chameleon, puts it:
"If users respond positively to CSAT or NPS surveys or log a fewer number of support tickets, it’s reasonable to assume your user onboarding is succeeding."
7. NPS During Onboarding
Net Promoter Score (NPS) during onboarding shows how likely new users are to recommend your SaaS product. It’s an early sign of how happy customers are and if your product might grow.
Why does NPS matter when users are just starting out?
- It shows what people think right away
- It helps find problems quickly
- It hints at how customers might act later
The big NPS question is: "How likely are you to recommend [COMPANY NAME] to a friend or colleague?" People answer from 0 (no way) to 10 (absolutely).
Then, we sort users into groups:
| Group | Scores | What it means |
|---|---|---|
| Detractors | 0-6 | Unhappy folks who might badmouth you |
| Passives | 7-8 | OK with your product, but not excited |
| Promoters | 9-10 | Big fans who help you grow |
To get your NPS, subtract the percent of Detractors from the percent of Promoters. Scores go from -100 to 100. Anything above 0 is good. For SaaS companies, the average score is 36.
Here’s how to use NPS when new users join:
Pick the right time: Ask after users have really tried your product. For most SaaS companies, that’s a few weeks to a month after they sign up.
Keep it quick: One question can tell you a lot. Maybe add an extra question if they want to say more.
Do something with what you learn: Use NPS to make your onboarding better. If someone’s unhappy, fix it fast so they don’t leave.
Use your fans: Ask happy users to write reviews or share their stories. It’s great for marketing because it’s real.
But remember, NPS isn’t everything. Melissa Henley, who knows a lot about customer experience, says:
"NPS can be a dangerous metric to focus on, as it represents a specific audience at a specific point in time."
So, use NPS with other onboarding numbers to really understand if users are happy and your product is doing well.
8. Early Customer Loss Rate
The early customer loss rate shows how many users ditch your SaaS product in their first 30-90 days. It’s a red flag for potential onboarding issues.
Here’s the cold, hard truth: 40-60% of free trial users will use your product once and vanish. That’s a ton of potential customers slipping away before they even get started.
Why does this matter? High early loss rates can kill your growth. You’re not just losing customers – you’re burning marketing money and missing out on word-of-mouth growth.
Let’s look at the numbers:
- For SaaS companies targeting small businesses, a "good" monthly churn rate is 3-5%.
- Most early-stage SaaS companies see 10-15% churn in year one.
- Established SaaS businesses average about 5% churn, with the best hitting 3% or less.
Here’s the kicker: boosting customer retention by just 5% can increase profitability by up to 95%. That’s a huge return for focusing on early customer experience.
So, how do you fix high early loss rates? Try these proven tactics:
- Speed up value delivery: Get users to their "aha!" moment ASAP. The faster they see real benefits, the more likely they’ll stick around.
- Customize onboarding: Ditch the one-size-fits-all approach. Tailor the experience to different user types or goals.
- Be proactive with support: Don’t wait for users to hit a wall. Reach out with tips and guidance in those crucial first days.
- Study user behavior: Look at what successful users do differently early on. Then, nudge new users towards those same actions.
- Set realistic expectations: Be clear about what users can achieve and how long it might take. Overpromising leads to disappointment and churn.
As Patrick McKenzie from Intercom puts it:
"Your onboarding process should get them to the ‘aha!’ moment – the point where they see and experience the real benefits of your service – as quickly as possible."
Next Steps
You’ve got a handle on these SaaS onboarding metrics. Now, let’s put them to work:
1. Set up a metrics dashboard
Create a central hub for your onboarding metrics. Use tools like Mixpanel, Amplitude, or a custom Google Data Studio dashboard. This gives you a quick overview of your onboarding health.
2. Establish baselines and goals
Check your current performance for each metric. Set realistic targets based on industry benchmarks and your business model. If your trial-to-paid conversion rate is 15%, aim for 18% next quarter.
3. Find your weak spots
Which metrics are falling behind? Is your Time to First Value too long? Or is your Core Feature Usage lower than expected? Focus on the areas that need the most work.
4. Run experiments
Once you’ve identified problem areas, design specific tests to address them. If your User Activation Rate is low, try:
- Simplifying your onboarding flow
- Adding more interactive product tours
- Sending targeted emails to inactive users
5. Measure and adjust
Keep a close eye on how your changes perform. Be ready to switch gears if something’s not working. Onboarding optimization is an ongoing process, not a one-time fix.
6. Make it personal
Use your data to create tailored onboarding journeys. Group users based on their goals, company size, or industry. Then, customize their path to value.
7. Automate where you can
Set up triggers based on user behavior. If a user hasn’t logged in for a week, send them an email or in-app message highlighting a key feature they haven’t tried yet.
8. Get user feedback
While numbers are important, don’t forget to talk to your users. Do interviews or send out surveys to understand the "why" behind your metrics.
9. Get everyone on board
Share your onboarding metrics and goals with product, marketing, and customer success teams. This creates a unified focus on improving the new user experience.
10. Consider onboarding tools
Platforms like Appcues, Pendo, or Chameleon can help you create and tweak onboarding flows without heavy development resources.
By following these steps, you’ll be on your way to creating an onboarding experience that impresses new users and sets the stage for long-term customer success and growth.
As Monika Nemcova, Organic Content & Strategy Lead at AIHR, says:
"Onboarding metrics provide you with a lot of information about your onboarding process and what you can do to improve it."
Keep measuring, keep tweaking, and watch your SaaS onboarding turn from a potential drop-off point into a powerful tool for keeping customers and growing your business.
FAQs
What is the engagement rate of onboarding?
The engagement rate of onboarding shows how many new users actually use your SaaS product right after signing up. It’s a big deal because it tells you if your onboarding process is doing its job: getting users hooked and showing them why your product is awesome.
Here’s a pro tip: group your users based on when they started using your product. This way, you can see how engagement changes over time and spot any issues with specific groups.
Why should you care? Because engaged users stick around. Check this out: 74% of customers will ditch a business if the onboarding sucks. That’s a LOT of potential long-term users gone in a flash.
David Watkins, Director of Customer Experience at EthOS, nails it:
"At the end of the day, as a SaaS company, you want your customers to renew their licenses. If a customer is consistently using your product and is happy, then it’s a good sign they’re going to renew."
Want to pump up your onboarding engagement rate? Here’s how:
Figure out what "active use" means for your product. Set up cohort analysis in your analytics tool. Keep an eye on engagement at key points (day 1, day 7, day 30). Use in-app messages or emails to show users the cool stuff. And always be tweaking based on what your high-engagement users are doing differently.