The Reality: Onboarding Is a Bottleneck

Statistic That Says It All:

• A study by Thomson Reuters found that 89% of customers experience friction during onboarding, and 13% of those customers will switch to a competitor outright.

• Moreover, other industry research suggests 74% of potential customers will jump ship if the onboarding process is overly complicated.

These data points make one thing crystal clear: the onboarding stage can make or break your relationship with a new client. Given that companies often invest heavily in acquiring new leads, losing them at the front door is a colossal waste of time and resources.

Common Onboarding Problems

Lack of Personalization
Too many onboarding processes use a “one-size-fits-all” approach. In reality, each new customer is different—some might need in-depth training on every feature, while others only need quick, high-level guidance.

Information Overload
Bombarding new customers with a long product manual or a string of lengthy tutorial emails can be overwhelming. When people get too many details at once, they often tune out—or leave altogether.

Miscommunication & Handoffs
Sales, support, and customer success teams often operate in silos. Vital information from the sales cycle doesn’t always make it to the onboarding team, leading to mixed messages and confusion.

Slow Time-to-Value
Every day that passes without the customer seeing tangible benefits from your product is an opportunity for them to lose interest. Complicated processes, multiple sign-offs, or unclear next steps all stall the realization of value.

High Support Costs
When onboarding is unclear, your support and customer success teams end up fielding repetitive questions. According to some reports, companies with poor onboarding endure 47% higher support costs per customer, which directly impacts the bottom line.

Why It Matters

Revenue Impact
The biggest hit of poor onboarding is financial. You lose potential sales and any chance of upselling or cross-selling once a frustrated customer leaves.

Brand Reputation
Negative experiences spread fast—especially on social media or review platforms. Word-of-mouth can make or break your brand’s image in today’s digital age.

Wasted Efforts
Marketing and sales teams work tirelessly to attract and close new customers. If those new customers abandon the product halfway through onboarding, all that work is for nothing.

Resource Drain
When processes aren’t automated or streamlined, teams spend too much time on manual tasks—like chasing down customers for missing information or sending out repeated follow-up emails.