If you want to improve your customer onboarding KPI, then you need to track the right KPIs. customer onboarding is a critical part of any business and if done correctly, can lead to long-term success with customers. The following are the most important customer onboarding KPIs and metrics you need to track for successful onboarding processes.
The goal of any SaaS organization should be to enable their customers to achieve their business goals. Proper customer onboarding is the first step in achieving this goal. It sets the tone for steady product adoption and determines whether or not the business will sustain its use of your product in the long term.
Customer Onboarding KPI: What is the user onboarding process
User onboarding is a process that assists users in finding their way through your product. It begins with the first interaction users have with your product and continues from there. It is the process of helping users to understand the best way to find value in your product.
This article provides seven customer onboarding KPIs you need to track to improve your process.
Contrary to popular belief, user onboarding process does not begin after users sign up for your product. It doesn’t even end with a product tour.
It all starts before the sign-up process. This should be included in the onboarding processes. This means that you should make it easy for users to sign up and guide them through the process.
When user onboarding begins, I can tell you that the first piece that users see is also part of the onboarding.
Why?
This piece of content should give users a general idea about your product and how it solves their problems.
Why should you Measure the performance in user onboarding?
As we have already mentioned, a failure to successfully onboard users is almost as bad as not having a high-quality product. If users don’t understand the benefits of your product, they won’t waste their time and will look for alternatives.
This means that you must provide a great onboarding experience.and measure it to ensure satisfaction.
you can Measure the user onboarding performance and identify your strengths and weaknesses, and then improve them.
Customer Onboarding KPI:
7 customer onboarding KPIs and Metrics
Onboarding success is not a fuzzy process that can’t be quantified. It is a hard task to improve employee experience and business results. Contrary to popular belief, there are qualitative factors that must be considered, such as cultural fit, new hires’ ability to build relationships quickly with peers, and even these can all be quantified using indicators such as involuntary and engagement rates.
Customer onboarding KPis and metrics are the best way to assess and improve your customer’s onboarding experience. By tracking these metrics, you can identify areas where the experience can be improved and make changes to ensure a positive experience for your customers throughout their entire lifecycle.
Let’s take a look at seven areas where HR teams should be collecting data and doing data analysis.
1. New-hire satisfaction
The key components of an employee experience roadmap include interviews with employees and anonymous surveys. These are the best ways to evaluate satisfaction levels for new hires.
Cross-checking satisfaction metrics can be done using methods such as measuring correlations. Consider the relationship between employee connections, and engagement. Companies that foster relationships create a culture of cooperation, cohesion, and encourage more senior employees reach out to new employees. These efforts often pay off in Engagement as employees discover ways to work together to achieve business goals.
Remember that these are correlations, not causes. So compute accordingly.
A net promoter score (NPS) is one of the best ways you can measure satisfaction levels. This formula is well-known by marketers as it is used to track customer attitudes towards a company. The same principles can be applied to new hires.
Based on their onboarding experience. ask new hires to rate the likelihood of them recommending the company to a friend or colleague. Those who score 9 or 10 are promoters. Those who score 1-6 are detractors. The rest are passive. Add the percentages of detractors to the percentages of promoters to calculate your net promoter score. If possible, benchmark your competitors against those who attract similar talent pools.
2. Voluntary and non-voluntary new hire turnover
Voluntary turnover is the number of employees who leave the company on their own initiative. If this number is higher than anticipated, or if new hires quit very soon after they start dates, it is a sign that something is wrong with the hiring process, or the employee experience. It can also be costly, especially if you lose talent that is hard to replace. SHRM estimates that replacement costs could equal six to nine months salary.
While turnover is an important indicator, it is not the only one. It’s too late for dissatisfaction to be addressed after an employee quits. It’s important to keep track of who quits and look for patterns such as managers, job titles, or roles that see more turnover than the average.
Involuntary turnover refers to a department or company that had to reduce its workforce or where managers felt the new hire was not meeting one or more of their performance expectations. This category is a sign that there are poor recruitment, hiring, and/or onboarding practices. it is important to understand why you are not hiring the right people or equipping potential candidates to succeed.
Both cases have the same goal: to identify and solve problems so that employee retention rates can be aligned. The U.S. Bureau of Labor Statistics tracks industry turnover and provides benchmarking data. HR specialists may want to interview line managers and staff from departments to gain insight into why it is difficult to retain employees in critical and competitive roles.
These formulas can be used to calculate your new hire turnover.
New hire voluntary turnover rate = (Number o new hires who are made to leave during a period/number of new hires within the same period) x 100
New hire voluntary turnover = (Number o new hires who leave on their own in a given time/number o new hires in that same time) x 100
3. Retention
Turnover is the flip side of retention. It measures how many employees decide not to leave for a specified period. Retention should be calculated using a baseline. SHRM estimates that up to 50% of employee turnover occurs within the first 18 months of employment. Many firms use this standard. It’s safe to assume that a worker will stay beyond this period.
Maximizing retention starts with making a good first impression on new hires. But it is more important to maintain a positive employee experience over the long-term. it is important to make sure your employees experience lives up to the branding and promises that attracted them to your company.
It is essential to answer the question of what employees want from your company in order to attract and keep good people. For example, a foosball table at the office or pizza lunches are less important for senior employees than a positive culture that encourages career development and growth.
New Hire Retention rate = number of new hires who remain with the company for at minimum 18 months / # new hires during the same period
4. Rate of training completion
Onboarding completion rate is a metric that measures the number or percentage of customers who complete your entire onboarding flow. Poor completion rates of training can indicate problems such as too little time or lack of management buy-in.
High training completion rates are a sign that employees are interested in improving their job performance and achieving their promotion goals.
Training is crucial to employee engagement and it’s worth the investment. A well-designed program will result in higher productivity, better retention, morale, and more innovation for the company. A good onboarding flow shows that the company is willing and able to invest in skill development from the perspective of the worker.
Onboarding best practices include creating onboarding checklists and plans to help new hires understand training requirements and upskilling options. Both managers and employees are held accountable for training completion by using checklists.
An easy KPI to calculate is the number of new hires who have completed training. Divide this number by the total number.
New Hire Training completion rate = number of new hires who completed training within a given period / Total # of new employees in that period
5. Time is the key to productivity
Onboarding is designed to help new hires become as productive as possible. it is a good indicator of how effective your onboarding process,susp>,susp>,susp>,susp>es have been.
While time-to-productivity metrics may vary among teams, seniority, and roles, they should be consistent across all employees in the same job.
Managers can help you determine the KPI by asking them to help you assess when new hires are able to perform the expected tasks within their roles without supervision or training. Regular 30-, 60-, and 90-day check ins with managers are a good idea to discuss training and performance for new hires.
Average time it takes to be productive = Total number of days until new employees are performing at their expected levels with little oversight / total new hires within a given period
6. Engagement rates
Outsiders who become part of a cohesive group are more likely to be invested in the company’s success, and to contribute positively to customer outcomes. Employer and employee are now in a relationship that is mutually beneficial.
Employees can become disengaged or lose interest in the relationship if it fails to form. Employee engagement is a strong indicator of the health of the relationship as well as the ability to innovate and stay productive.
In order to calculate engagement, you should be aware of absenteism, turnover, ratings on employer review sites, and, where possible your average employee Net Promoter Score (eNPS). An eNPS, which is similar to a traditional NPS score, provides a standard way for employees to assess whether they are enthusiastic about the company and would recommend it to others.
Here are some formulae to calculate KPIs for recruitment that will help you measure new hire engagement with work.
New hire absenteeism rates = (# workdays missed in a given time period / total # days worked by new employees in the same time period) x 100
New hire turnover rates = (#of new hires who leave in a given time / #of new employees in the same time) x 100
Survey new hires to determine the eNPS. Ask them if they would recommend the company to others. Those who score 9 or 10 are promoters. Those who score 1-6 are detractors. The rest are passive.
New Hire eNPS = percentage of Promotors – percentage of Detractors
7. Return on investment
An HR perspective can measure your company’s return to investments in onboarding, training, and talent management. These include higher retention and recruitment rates and faster time to productivity. Employee engagement is also higher. Employee experience ratings and morale are higher.
You will need to identify the KPIs that you require in order to measure your onboarding ROI according to the business outcomes you want. Onboarding that is exceptional results in a rapid and obvious ROI.
These formulae and information can be used to calculate the return on your investment in onboarding efforts.
Acceptance Rate = (number of offers accepted by applicants/total # of offers made) x 100
Retention Rate = (number of employees who stayed for a certain period / # employees at the start of the period) x 100
Revenue per Employee = Net Sales in a given Period / Average number of employees in that Period
Consider using regular sentiment surveys to gauge employee satisfaction. On a scale of 1 to 5, ask questions such as:
- Do you feel supported and valued by the company?
- Do you feel that your contributions are valued?
- Are you equipped with the right tools and support to do your job effectively?
Monitor how employees rate your company over time. Identify problematic areas and departments to help improve.
Conclusion: Customer Onboarding KPI
A great user onboarding process;is essential for the success of your product or business.
It’s not enough to create a quality product that you believe will be valuable to people. You also need to help them to benefit from it. This is something you must be able to do well inorder to achieve your business goals.
You must also monitor these customer onboarding KPis and metrics in order to identify any issues that could hinder your ability to provide excellent user onboarding.
By tracking your efforts, you can give your team the tools to improve customer satisfaction, retention, lifetime value (LTV), and much more.
