
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.
In today's competitive SaaS landscape, a smooth onboarding experience isn't just a nice-to-have—it's a critical business driver. Research from Wyzowl indicates that 63% of customers consider the onboarding process when making purchasing decisions. Yet despite its importance, many SaaS companies struggle to effectively measure onboarding completion rates, leading to missed opportunities for revenue growth and reduced churn. This article explores proven methodologies for measuring onboarding completion, establishing meaningful benchmarks, and leveraging these insights to drive business outcomes.
Onboarding completion rates serve as a vital indicator of early product success. According to a study by Chameleon, users who complete onboarding are 80% more likely to become long-term customers. For SaaS executives, this metric directly correlates with:
Before measuring completion rates, executives must establish a clear definition of what "completed onboarding" means for their specific product. This definition typically falls into one of three frameworks:
This approach defines completion as users reaching specific product milestones or completing key actions:
Example: Slack defines onboarding completion as users who have: created a workspace, invited at least one team member, sent 10+ messages, and installed at least one integration.
This method measures completion based on engagement over a fixed timeframe:
Example: HubSpot considers initial onboarding complete when a user has engaged with the platform for at least 3 of the first 7 days after signup.
This sophisticated approach defines completion as users achieving their first value moment:
Example: Calendly defines onboarding as complete when a user schedules their first meeting through the platform—the core value proposition.
The fundamental formula for onboarding completion rate is:
Onboarding Completion Rate = (Number of Users Who Completed Onboarding / Number of Users Who Started Onboarding) × 100%
However, implementing this calculation requires careful consideration of several factors:
When selecting a time period for measurement, consider:
For more actionable insights, segment your completion rates by:
According to research by Mixpanel, segmented completion analysis typically reveals 15-30% performance variations between different user groups.
Modern SaaS companies can leverage several tools to track onboarding metrics:
Industry benchmarks can provide context, but should be interpreted cautiously:
However, according to OpenView Partners, the most valuable comparison is against your own historical performance, targeting 3-5% improvement quarter-over-quarter.
While completion rate provides a high-level view, sophisticated SaaS executives should also track:
The average time users take to complete onboarding. According to Intercom, reducing this metric by 30% typically yields a 15-25% increase in conversion to paid.
Identifying where users most commonly drop off during onboarding. Data from Appcues shows that addressing the top abandonment point can improve overall completion by 10-15%.
Tracking which core features are adopted during onboarding. Pendo's research indicates that users who adopt at least 3 core features during onboarding have 40% higher retention rates.
Effective executives don't just track metrics—they drive improvement through systematic approaches:
Implement a structured testing program to improve completion rates:
According to Optimizely, companies with formalized experimentation programs improve completion rates 2.5x faster than those without structured testing.
Complement quantitative data with qualitative insights:
UserTesting research shows that companies combining analytics and direct user feedback identify 40% more improvement opportunities.
For SaaS executives, onboarding completion rate represents far more than a vanity metric—it's a leading indicator of product adoption, customer satisfaction, and ultimately, revenue growth. By establishing clear definitions, implementing robust measurement frameworks, and creating systematic improvement processes, leaders can transform onboarding from a potential friction point into a competitive advantage.
The most successful SaaS companies view onboarding not as a one-time event but as the foundation of the entire customer journey. With proper measurement and optimization, onboarding completion becomes the first step in a virtuous cycle of adoption, retention, and expansion that drives sustainable business growth.
To begin improving your onboarding completion rates:
By taking these actions, you'll be well-positioned to transform your onboarding experience from a functional necessity into a strategic asset that drives measurable business results.
Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.