A note from Daniel

Three reasons why user onboarding is the crux of product-led growth strategy: i. User onboarding is a retention lever. For example, the HubSpot Sidekick team found a 15% lift in retention during the first week of new users resulted in a 50% increase in retained users after ten weeks. ii. User onboarding is a revenue multiplier. If you started with 1,000 users and charged each user $5 per week without a free trial period, a 15% increase in the retention during the first week of new users will result in a 50% increase in revenue. iii. Good user onboarding leads to lower CAC. Assume it costs $2,000 to acquire 1000 new users and there's a seven-day free trial, Let's say improving the user onboarding improved the trial-to-paid conversion from 60% to 75%. That's a CAC of $3.33 for the original onboarding or $2.67 for the improved onboarding...

Daniel Product-Led Onboarding, page 40 · July 28, 2023 Save to shelf
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