41% of optimization is 10% less effort for activations
Companies with a greater focus on customer satisfaction have 1.5x higher employee satisfaction, 1.6x higher brand awareness, and 1.9x higher order value. — SmartKarrot
The goal of activations is how fast can customers find value in your offering. This is where onboarding plays a crucial role in customer value creation. This is essentially an AHA moment where value is identified, and created for the customer. When this value-creation moment happens, this is where customer lifetime value goes up by x6 due to the fact they see themselves using that product or service for a long time. Some of the measures the activation phase measures are:
- Time to Value
- Visitors to registration ratio
- Conversion rate
- How many customers used a crucial product feature?
- How many customers experienced the AHA moment?
- Drop-off rate
- Dwell time + viewed pages
Onboarding has a high impact point as studied by Growth Labz on aggregate revenue. The goal is to apply the least amount of friction to get the customer the initial results they want. This is not about the best, or most optimized result, but an entry point good enough to win a customer’s confidence. This is where further onboarding programs help leverage initial results and build on them; 84% of onboarding programs don’t go far enough to support the customer journey.
Build an effective onboarding process that gets customer value fast. Once you have established this value baseline, build on it and do not leave customers hanging throughout the customer service experience.
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ABOUT — Growth Thinking
Growth Thinking is a design methodology for growth hacking by the bestselling author of Ready Set Growth Hack, Nader Sabry. It has been applied as a book and a $1 million challenge known as the 10-day growth hacking challenge, which has generated $138m in revenue. This methodology has been adopted by universities like Harvard and Stanford, fortune 500s (Google/Microsoft), and unicorns.