In this blog, you will learn to calculate customer success ROI and the importance of the right customer onboarding strategy for your organization. Also how you can avoid the common mistakes that most Saas-based companies are making while delivering customer onboarding strategies.
Moreover, you will learn about the: 6 simple methods used to measure the ROI of your customer onboarding program. So, sit tight and sip in some caffeine because this blog is your tool to deliver & enhance customer retention in aspects of your Returns On Investment (ROI).
Also, you can download this free guide to keep it handy for later touchpoint discussion & calculate ROI with your team.
Let's Know How to Effectively Measure the ROI of Customer Onboarding?
Use the table of contents to navigate the guide.
- Customer Onboarding.
- Importance of Customer Onboarding In Current Marketplace.
- How Crucial Is It To Invest In The Right Onboarding Method?
- Top 6 Simple Methods To Measure ROI for Customer Onboarding Program.
- Conclusion.
1. Customer Onboarding.
Customer Onboarding is like a bridge between your organization’s efforts towards customer satisfaction and the degree of realization your customers have towards your efforts.
So, the easier to grasp and flexible in choice design your onboarding program delivers, the less customer churn will be there. Because in customer’s perception, your onboarding program has to be like a takeaway learning experience.
Customer’s Onboarding Expectation
- Communicative & Easily Accessible Platform
- Dedicated Assistance Available
- Educative & Learning Environment
- Content Relevant to Specific Goals
- Seamless After-Purchase Experience
- Mobile-friendly Platform
Saas-based company realizing the imperative need of the hour being customer-centric initiatives are now deviating the overall business focus points.
Because customers are evolving in their choices of product experience - no matter how lubricative any business marketing strategy is - customer satisfaction will always be a unicorn story.
On the contrary, bringing customer experience as the focal point for your business strategy is the advanced ground you need. All you need is the grounds!
2. Importance of Customer Onboarding in Current Marketplace.
Now, your grounds here mean in the context of the customer’s perception. There was a time when combative stance amongst the competition in any Industry use to drive great Returns on Investment (ROI). But, gone are those days! There’s no shark left in the tank no more.
“Customer’s are the King” So, your grounds are the way you strategize your customer onboarding program. Establishing S.M.A.R.T Goals allows you to monitor, scale, and reshape your onboarding program according to customer’s progress.
S: Specific
M: Measurable
A: Attainable
R: Relevant
T: Timely
Because the moment your organization gets the contextual basis of customer experience itself from their awareness stage to becoming your brand’s advocate, your decisions will always remain inclusive to them.
3. How Crucial is It to Invest In “Right Customer Onboarding”?
Investing in the right customer onboarding is a crucial task. How would you track the onboarding program is going the right way?
40 to 60% of users signing up for a free trial will use your services once. Few like 2.7% stick around after 30 days.
Customer Onboarding, when deliver right becomes a transparency web that allows your customer to crawl & explore their choices of experience freely.
But as it becomes a customer-oriented experience, it comes down on your shoulder that: Is your Customer Onboarding making these Common Mistakes too?
Common Customer Onboarding Mistakes that Most SaaS Organizations Make
- Too many things yelling for Customer’s Attention
- Thinking most customers need the same thing
- Designing an Onboarding Program that makes Customers work hard for their “First Win!”
- Overloading Content without allowing personalized segments
Now, once your L&D and Customer Sucess Team pen down the onboarding strategy avoiding such mistakes, it’s time to focus on your response touchpoints.
You might have observed the customer success industry is taking the pace - various methods of “how to measure customer onboarding results” became the talk of the town.
And why not it is imperative to scale your efforts invested in the onboarding program, moreover in terms of Return on Investment (ROI).
Let’s be crystal clear beforehand there’s no ‘exact method’ to precisely scale your ROI for onboarding programs. But, there are key metrics that will narrow down your efforts & will allow your organization in the right direction & foster it.
4. Top 5 Simple Methods to Measure ROI for Customer Onboarding Program
1. Calculate Net Promoter Score {NPS}
Net Promoter Score is the imperative method to measure customer experience. In simple terms, it is the sentimental measure of a customer’s satisfaction benchmark with your brand.
Employ survey to the customers acknowledging their perspective on a scale of 0-10. Score 0-6 are critics, score 7-8 are idle or inactive, and 9-10 are your brand promoters.
Critics: Customers who have responded between score 0-6
Idle: Customers who have responded between score 7-8
Promoters: Customers who have responded between 9-10
These scaling measures determine the range of responses for your onboarding program.
Net Promoter Score (NPS): Percentage (%) of Promoters - Percentage (%) of Critics
Customer Journey Analytics
Your customer’s overall journey can be analyzed by employing milestones to each progressing stage of the customer. But for that, you have to create a customer journey map.
A customer journey map is a visual representation of what exactly your customer expects as an experience from your product & how are they going to achieve their goal.
It not only reduces customer’s churn rate but also benefits you to quantify the loopholes & reshape that part of the onboarding module according to the relevant customer needs.
2. Measure Customer Satisfaction Scores (CSAT)
Customer Satisfaction is the most straightforward method to measure your customer experience. Your ROI depending upon the customer’s post-purchase experience can be abstracted from this survey.
Just deliver the survey emphasizing in “How satisfied were you while using our products & services?” And provide them with a survey scale.
If Customer Satisfaction (CSAT) is low, then improve by focusing on the feedback touchpoints.
CSAT doesn’t necessarily prove brand loyalty but it can measure the contrast of customer’s experience.
3. Customer Lifetime Value (CLV)
Customer Lifetime Value is the money that a single customer spends for their experience with your product. It is calculated by multiplying the average customer’s lifespan by the customer value.
Customer Lifetime Value: Average Customer Lifespan x Customer Value
Here, the customer’s value is their choice worth. Analyzing the alternatives available and customers’ received value from your product determines how much value they are getting from your organization.
4. Customer Churn Rate
Customer churn with any product use is inevitable. But to reduce the churn rate, you can use this analysis to rectify the loopholes and enhance the customer’s experience to build a cyclic subscription arrangement.
This allows you to gain high recurring revenue & upsells. To know customer churn rate, it is a simple percentage of customers who canceled the subscription in the given time to those to renewed or continued with your organization.
5. Cost Spent on Support
The average cost spent on training the support teams & resolving the escalated customer issues determines where your onboarding program improvement is needed.
Conclusion:
Creating an inclusive environment for customers is imperative for any organization’s marketing strategy in the current marketplace. Your overall ROI is the result of the customer’s experience. So how you plan your crucial customer onboarding strategy will determine how satisfied customers are with your product experience.
Focusing on these key metrics will allow your onboarding strategy to get the crux of the matter, and then you can deploy an automated management system & support to improve the customer experience.
And, remember these measures are touchpoints to your efforts, so keep improving, and keep learning your customers.
