Why is User Onboarding Important?5:41 with Hope Armstrong
Learn about retention, churn rates, and why making a good first impression is important.
Why is User Onboarding Important?
- First impression is important and impacts user retention
- User acquisition is costly
- Low feature adoption
- To explain redesigns
- User retention: The percentage of users who are still using a product after a certain number of days since their first experience with the product.
- KPI: Key Performance Indicator, a popular success metric for team goals
- Churn rate: The percentage of users who stop using a product. It's sometimes referred to as the attrition rate.
There are several reasons why user onboarding is important. 0:00 First, products need to make a good first impression, or 0:04 else they risk losing the attention of their users. 0:08 The metric that evaluates this is called User Retention. 0:12 It is a major KPI, or Key Performance Indicator for 0:15 a product, and it's a term you'll encounter as a UX designer. 0:20 User Retention is the percentage of users who are still using a product 0:26 after a certain number of days since their first experience with the product. 0:30 There are various ways to measure retention. 0:34 But I won't go into these details, it can be quite complicated. 0:37 The take away here is to become familiar with this term. 0:42 Let's look at some data to understand retention rates. 0:46 Adjust is a mobile analytics company and 0:49 they included retention benchmarks in their 2019 global app trends report. 0:52 In this report, they found that the average app loses 79% of 0:58 its users in the first week after it is installed. 1:03 But this varies greatly based on the type of app. 1:06 For instance, casino games, dating apps and news apps have the highest 1:10 percentage of users returning to the app a day after installing it. 1:15 On the flip side travel and food delivery apps have the lowest. 1:21 After 30 days have elapsed the average retention rate for apps is 14%. 1:26 News, communication and 1:32 comics apps have the highest retention rate for this time period. 1:34 You can see that travel booking apps and 1:39 food delivery apps still rank low on retention. 1:42 But that is to be expected, 1:45 given that people use these types of apps in infrequent intervals. 1:47 The takeaway here is that a lot of users become inactive after the first week. 1:53 This drop in active users is referred to as churn, 1:58 which is basically the opposite of retention. 2:01 A churn rate is the percentage of users who stop using a product. 2:04 It's sometimes referred to as the attrition rate. 2:11 So be sure to prioritize a user's first experience with the product your 2:15 designing to minimize churn. 2:20 Digital products have a lot of competition. 2:22 If a user is not quickly satisfied with one product, 2:25 they'll move on to try another product. 2:28 This raises the bar for products to be high quality and 2:31 instantly serve their audience. 2:34 Secondly, it's difficult and costly to acquire users. 2:36 Companies allot a certain amount of advertising money to go towards each 2:43 user acquired. 2:47 So if a user continues to use the product, that's a win for the company. 2:48 If they churn, or in other words stop using the product, 2:54 then that advertising money may not result in a profit for the company. 2:58 Great, so user onboarding is great for optimizing a new 3:03 user's experience with a product but onboarding goes beyond that. 3:07 You may notice that a product you're working on has low 3:12 feature adoption in a given area. 3:17 A low feature adoption means that a small percentage of people are using a feature. 3:20 Perhaps it's a new feature that users haven't discovered yet. 3:26 Or maybe they need help understanding how to use it. 3:29 And once they do, they'll find it to be valuable. 3:33 You can design an onboarding experience to help users find the feature and 3:37 understand how to use it. 3:42 This will keep existing users engaged in the long term too, 3:44 as they can continue finding new benefits from the product. 3:48 If you're wondering how exactly to do that, 3:52 don't worry, I'll show you some examples later. 3:55 Lastly, onboarding is needed as part of major redesigns. 3:58 Let's say you've completely revamped the user experience in an app. 4:04 Perhaps you've moved the UI around, added new features, and so on. 4:09 Yes, it greatly improves the user experience, but it's a sudden change. 4:14 From your user testing, you've seen that users do like the new experience. 4:20 It just takes some getting used to. 4:25 You'll want to ease the transition to this new UI by 4:27 designing an onboarding experience. 4:31 Slack recently underwent a redesign and they provided onboarding for the changes. 4:34 All right, now, you know a bit about user onboarding. 4:46 Before we move on to user onboarding patterns, 4:50 let me show you a couple of resources where you can go for inspiration. 4:53 Useronboard.com is a helpful website that shows the entire 4:58 onboarding experience for several apps. 5:03 You can click through and read the commentary. 5:06 It's usually a good critique that includes compliments as well as 5:09 missed opportunities. 5:13 Some of the examples are a bit dated, so 5:14 know that some screenshots will not match the current products. 5:17 Reallygoodux.com also has a collection of onboarding experiences for 5:24 various products. 5:29 Using these resources, 5:30 you'll be able to see screenshots without signing up for the app yourself. 5:32 Check out the links in the teacher's notes. 5:37 I'll see you in the next video. 5:39
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