Here's a shocking statistic:
70% of users who abandon your product do so within the first 7 days.
That means 7 out of 10 potential customers never experience your product's value.
The culprit? Poor onboarding.
This guide shows you how to create onboarding that converts trial users to paying customers.
What Is User Onboarding?
Onboarding is the process of guiding new users to their first "aha moment"—the point where they experience your product's value.
The Goal: Help users achieve their first success as quickly as possible.
The Outcome: Users who see value become customers who stay.
The Onboarding Funnel
Awareness → Consideration → Trial → Onboarding → Activation → Retention → Revenue
Onboarding sits between Trial and Activation.
Your job: Move users from signup to activation as efficiently as possible.
The 5 Onboarding Models
Model 1: Interactive Walkthrough
What: Step-by-step tour of the product
Best for: Simple products with clear flows
Example: "Click here to create your first post"
Pros:
- Clear guidance
- Easy to implement
- Shows features directly
Cons:
- Can feel like a tutorial
- Users skip through
- Doesn't explain "why"
Model 2: Checklist
What: List of tasks to complete
Best for: Products with clear workflows
Example:
- Connect your data
- Create your first report
- Invite a team member
- Set up notifications
Pros:
- Clear progress
- Gamification potential
- User-controlled pace
Cons:
- Can be overwhelming
- Users don't know where to start
Model 3: Contextual Guidance
What: Tips and hints appear at relevant moments
Best for: Complex products with many features
Example: When user hovers over "Export," show tooltip explaining options
Pros:
- Relevant to current context
- Doesn't interrupt flow
- Scales with product complexity
Cons:
- Easy to miss
- Requires thoughtful implementation
Model 4: Interactive Tutorial
What: Hands-on guided experience
Best for: Products requiring learning
Example: Build your first project with guided steps
Pros:
- Active learning
- Immediate value
- High engagement
Cons:
- Time-consuming to build
- Users may not want to learn
Model 5: Hybrid Approach
What: Combination of multiple models
Best for: Most products
Example:
- Quick interactive walkthrough (5 minutes)
- Checklist for deeper exploration (30 minutes)
- Contextual tips throughout
Pros:
- Flexibility
- Addresses different user types
- Comprehensive
Cons:
- More complex to build
- Requires testing
The Onboarding Checklist Framework
Phase 1: Welcome (Day 0)
Goal: Set expectations and build excitement
Actions:
- Personalized welcome email
- Clear value proposition reminder
- Next steps overview
- Support options
Email Template:
Subject: Welcome to [Product], [Name]! 🎉
Hi [Name],
Thanks for signing up for [Product].
Here's what happens next:
1. Complete your profile (2 minutes)
2. Set up your first [core action] (5 minutes)
3. Explore key features (10 minutes)
Your goal today: Experience your first [outcome].
Ready? Let's go → [Link]
Questions? Just reply to this email.
[Name]
[Company]
Phase 2: Setup (Day 1)
Goal: Help users complete initial configuration
Actions:
- Guided setup flow
- Minimal required fields
- Progress indicator
- Clear completion state
Key Principle: Ask for minimum required information only.
Phase 3: Core Action (Day 1-3)
Goal: Guide users to their first "aha moment"
Actions:
- Identify the single most valuable action
- Create clear, guided path to that action
- Celebrate completion
- Show immediate value
The Core Action:
Product | Core Action |
|---|---|
Project Management | Create first project |
CRM | Add first contact |
Email Marketing | Send first campaign |
Design Tool | Create first design |
Phase 4: Exploration (Day 3-7)
Goal: Introduce secondary features
Actions:
- Suggest next actions
- Highlight advanced features
- Share tips and best practices
- Encourage deeper adoption
Phase 5: Activation (Day 7-14)
Goal: Convert to paying customer
Actions:
- Highlight premium features
- Offer upgrade path
- Provide support for conversion
- Celebrate milestones
Onboarding Metrics That Matter
1. Activation Rate
Definition: % of users who complete core action
Formula:
Activation Rate = (Users who complete core action / Total signups) × 100
Targets:
- Excellent: 50%+
- Good: 30-50%
- Needs Work: 20-30%
- Critical: <20%
2. Time to Value (TTV)
Definition: Time from signup to first value
Measure: Hours or days
Targets:
- Excellent: <1 hour
- Good: 1-4 hours
- Needs Work: 1-3 days
- Critical: >3 days
3. Completion Rate
Definition: % of users who complete onboarding flow
Targets:
- Excellent: 80%+
- Good: 60-80%
- Needs Work: 40-60%
- Critical: <40%
4. Churn Rate
Definition: % of users who leave without activating
Targets:
- Excellent: <30% (first week)
- Good: 30-50%
- Needs Work: 50-70%
- Critical: >70%
Onboarding Best Practices
1. Reduce Friction
Remove Barriers:
- Too many form fields
- Credit card required for trial
- Complex verification
- Slow loading times
- Confusing navigation
Add Clarity:
- Progress indicators
- Clear CTAs
- Helpful tooltips
- Sample data
- Example content
2. Show Value Early
First 5 Minutes:
- Show the product working
- Demonstrate key benefit
- Provide quick win
First 24 Hours:
- Guide to core action
- Celebrate progress
- Send helpful tips
3. Personalize the Experience
Based on:
- Signup source
- User role
- Company size
- Industry
- Behavior
Personalization Examples:
- "Welcome, [Role]! Here's how [Product] helps [Role]s like you..."
4. Use Progressive Disclosure
Don't overwhelm with features.
Show:
- Essential features first
- Advanced features later
- Power user features optional
Approach:
- Day 1: Core 3-5 features
- Day 7: Advanced features
- Day 30: Power features
5. Celebrate Wins
Acknowledge Progress:
- "You created your first report!"
- "50% complete!"
- "You're on a roll!"
Use:
- Confetti
- Badges
- Milestone messages
- Share buttons
Onboarding Optimization Checklist
Design
- Define core action
- Map onboarding flow
- Choose onboarding model
- Create welcome sequence
- Design celebration moments
Implementation
- Build guided walkthrough
- Create checklist experience
- Add contextual tips
- Implement progress tracking
- Set up email sequences
Testing
- Test with real users
- A/B test CTAs
- Measure drop-off points
- Gather feedback
- Iterate and improve
Monitoring
- Track activation rate
- Monitor TTV
- Analyze completion rates
- Identify friction points
- Optimize continuously
Common Onboarding Mistakes
Mistake #1: Overwhelming New Users
Wrong: Show every feature at once
Right: Focus on core action first
Mistake #2: No Clear Goal
Wrong: "Here's the product, figure it out"
Right: "Here's your first goal: [specific action]"
Mistake #3: Requiring Too Much Upfront
Wrong: Ask for 15 fields during signup
Right: Ask for email only, collect details later
Mistake #4: No Follow-Up
Wrong: One welcome email, done
Right: Nurture sequence with tips, encouragement, and value
Mistake #5: Not Testing
Wrong: "This is how onboarding works"
Right: A/B test every element, measure results
Onboarding Examples
Slack: The Gold Standard
Onboarding:
- Enter email
- Verify email
- Create workspace
- Invite team members
- Start exploring
Key Features:
- Clear progress
- Social proof (invite friends)
- Sample workspace
- Helpful tips throughout
Dropbox: Referral-Powered
Onboarding:
- Create account
- Install desktop app
- Upload first file
- Share with friend
Key Features:
- Simple actions
- Referral integration
- Clear value demonstration
- Gamification
Notion: Template-Led
Onboarding:
- Choose your use case
- Select a template
- Edit the template
- Customize for your needs
Key Features:
- Templates showcase value
- Low barrier to entry
- Creative freedom
- Endless possibilities
Related Reading
- Product-Market Fit Framework - Before onboarding
- Product Launch Strategy - Include onboarding in launch
- MVP Metrics That Actually Matter - Measure onboarding success
Need Help Optimizing Onboarding?
At Startupbricks, we've helped dozens of startups design onboarding that converts. We know what works, how to measure, and how to optimize.
Let's talk about improving your onboarding.