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Simple onboarding gets you activation. Impactful onboarding gets you retention

I spent 10+ years in Customer Success managing thousands of SaaS accounts across multiple companies. Drove 110-130% NRR. Managed over 400 accounts at once.

And in all that time, here's what I can tell you. The companies that celebrated "we simplified onboarding!" were missing the bigger picture.

Simple onboarding gets customers to complete a task. They sign up. They set something up. They check a box.

But impactful onboarding? That changes how they work.

Here's the difference: I've seen products with clean, simple onboarding flows that got customers activated in under a week—but retention was weak.

And I've seen products where onboarding took longer, but retention was incredibly strong.

The difference wasn't the simplicity of onboarding. It was whether customers actually changed their behavior because of the product.

The high-retention products got customers to:

  • Use the product in situations they didn't expect to
  • Change their workflow around what was built
  • Evangelize it without being asked
  • Feel like they couldn't go back to how they did things before

That's not activation. That's ownership.

For those building in the $300K-$1.5M range:
Most founders are focused on "how do I get people through onboarding faster?" That's good. But the next level question is: "Is my onboarding getting people to change how they work, or just getting them to complete tasks?"

Because simple onboarding gets you Week 1 activation metrics. Impactful onboarding gets you Year 1 retention.

Some things I've observed that drive ownership:
→ First win has to be meaningful, not just functional (they solved a real problem, not just "completed setup")
→ The product needs to unlock something they couldn't do before (not just do something faster)
→ Early usage needs to create a habit loop (they come back without being nudged)

This is why some "simple" products have terrible retention and some "complex" products have incredible retention. It's not about simplicity. It's about impact.

Curious what you're seeing:
For those of you building SaaS products—are you measuring activation or are you measuring behavior change? And if you're measuring behavior change, what does that look like for your product?

posted to Icon for group Startups
Startups
on December 17, 2025
  1. 1

    This is a great distinction between activation and impactful onboarding.

    I’ve observed in demos that sometimes the onboarding completes tasks but doesn’t help the viewer internalize the flow of using the product. That’s when the demo feels “functional but flat”.

    To improve that, focusing on momentum in the demo — where each step feels clearly connected to the next — tends to lead to better understanding and less friction.

    Have you seen examples where onboarding actually reshaped user behavior longer-term?

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