Onboarding Therapy #2: Securing Leadership Buy-In for Customer Onboarding

Most companies recognize that customer onboarding is critical in B2B SaaS, yet it often remains undervalued.

While sales and marketing have established metrics and clear revenue ties, onboarding still fights for recognition.

In this week's Onboarding Therapy, we explore strategies for securing leadership buy-in for customer onboarding initiatives, drawing from our experiences building onboarding teams from the ground up.

The Challenge of Onboarding Recognition

Historically, post-sales motions like customer onboarding have been viewed as secondary or reactive. This perception can lead to several challenges:

1. Lack of investment in onboarding tools and resources
2. Difficulty in securing budget for team expansion
3. Limited support from other departments
4. Perception of onboarding as a cost center rather than a revenue driver

However, effective client onboarding is crucial for reducing churn, increasing customer lifetime value, and ultimately driving revenue.

The key is to demonstrate this value to leadership in a way that resonates with their priorities and concerns.

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Practical Strategies for Gaining Leadership Buy-In for Customer Onboarding

Demonstrate Onboarding's Direct Impact on Revenue

Leaders are primarily concerned with new revenue and churn. To gain their attention, frame onboarding in terms of its impact on these metrics.

Here's how:

💰 Use your CRM to track revenue associated with customers in the onboarding pipeline. Frame this as potential lost revenue or churn risk if these customers aren't properly onboarded.

📊 Track and report on expansion revenue from successfully onboarded customers. Show how customers who complete onboarding are more likely to upgrade or add new features.

"If you can convince or convey that there is a revenue component customer onboarding... you can start to prove that onboarding is a key reason why customers are sticking around longer and not churning."

- Shareil Nariman, Head of Customer Experience at Arrows

Establish and Own Key Onboarding Metrics

Onboarding teams must take ownership of their metrics and consistently report on them. This can help to demonstrate the value of onboarding and also shows a data-driven approach that resonates with leadership.

Key onboarding metrics to track:

• Time to first value
• Early churn rates (e.g., 30, 60, 90 days)
• Onboarding completion rates
• Expansion revenue from successfully onboarded customers

📌 Pro tip: Start with a simple spreadsheet to track metrics before moving to more sophisticated reporting tools.

Prove Onboarding's Value Through Small, Targeted Initiatives

Instead of asking for a large budget upfront, begin with small initiatives:

• Choose one specific customer segment or part of the onboarding process to focus on.
• Implement changes and meticulously track results (again, don't be afraid to start in a spreadsheet)
• Use these small wins to build momentum and make a case for larger investments.
• Share your wins, no matter how small, to gain more leadership buy-in.

Align Onboarding Goals with Broader Business Objectives

Ensure your onboarding goals align with broader business objectives. This demonstrates that onboarding is not operating in a silo but is an integral part of achieving company-wide goals.

Questions you should be able to answer:

• How does improved onboarding support the company's growth targets?
• Can more efficient onboarding reduce overall customer acquisition costs?
• How does better onboarding align with product adoption goals?

Develop a plan to improve these larger business metrics over time, and get in front of your leadership team to show them that you're thinking about these metrics and have an actual plan in place to make it happen.

Remember - leadership has a ton on their mind and it might not be immediately obvious to them that customer onboarding can directly impact some of these metrics. As an onboarding leader, it's up to you to make sure they're bought in.

Leverage Quick Wins for Immediate Impact

While long-term metrics are crucial, also look for ways to demonstrate the short-term impact that your onboarding team can have on the business. Some examples to think about:

• When launching a new product feature, incorporate it into your onboarding process and track its adoption rate among new customers versus the general user base.
• Measure and report on improvements in initial customer satisfaction scores post-onboarding.

Foster Cross-Departmental Collaboration

Work closely with sales, product, and customer success teams to show onboarding's broader impact:

• Partner with sales to track how improved onboarding affects deal closure rates or contract sizes.
• Collaborate with product teams to show how onboarding feedback leads to valuable product improvements.
• Work with customer success to demonstrate how effective onboarding reduces support tickets or increases long-term satisfaction scores.

Securing leadership buy-in for customer onboarding is a gradual process that requires persistence, data-driven arguments, and a clear demonstration of business impact. By tying onboarding to key revenue metrics, consistently reporting on its impact, and showing its value across the organization, onboarding teams can elevate their status from a perceived cost center to a recognized driver of customer satisfaction, retention, and revenue growth.

Remember, most leaders are aware of churn and activation problems in their businesses. Your job is to convince them that effective onboarding is the solution. With these strategies and a commitment to continuous improvement, you can transform how your organization views and values customer onboarding.