Onboarding is the critical junction where users decide if your software is the right solution for them, making it a decisive factor in customer retention and churn. In a world awash with email information overload, SMS onboarding sequences uniquely position themselves as more direct and engaging. With open rates hovering around 98%, SMS messages are almost certainly read, presenting a golden opportunity to guide new users through your software.
Full disclosure: I work for ReadySMS, a platform dedicated to making SMS marketing and onboarding easier and more effective. Let's dive into how you can structure SMS onboarding sequences for your SaaS or service business to maximize user activation and minimize churn.
Why SMS for Onboarding?
SMS might seem like a step back in time compared to flashy, rich media emails, but data shows that what SMS lacks in flair, it makes up for in effectiveness. SMS often reaches a user's phone instantly and isn't buried under an avalanche of other notifications. When onboarding a user, this immediacy and visibility can mean the difference between an engaged user and a churned one.
The Limitations of Email-Only Onboarding
Before we dive into SMS specifics, let's understand why an email-only onboarding process might not be serving your users as effectively as you'd hope. Emails tend to have lower open rates, with industry figures suggesting rates between 15-25%. This means a large proportion of your emails might never be read. Moreover, emails don't have the urgency or personal touch that SMS can deliver.
Key Limitations of Email:
- Low Open Rates: 75% of emails might go unread.
- Delayed Engagement: Emails might sit for hours before being opened.
- Spam Filters: Critical touchpoints can end up in the junk folder.
Milestone-Based Architecture
Instead of sending messages on a fixed schedule, SMS onboarding sequences can be milestone-based. This means that you trigger messages when users complete specific actions or reach key milestones. This architecture ensures relevance and timing, making the messages feel less intrusive and more helpful.
Identifying User Milestones
Some common milestones that might trigger an SMS during onboarding could include:
- Account Creation: Trigger a welcome SMS with key resources.
- First Login: Send a message celebrating their first login with tips or FAQs.
- Feature Usage: When a user discovers and uses a key feature.
- Happy Path Completion: Congratulating users when they reach a critical usage threshold.
Trigger Events vs. Passive Drips
The beauty of SMS onboarding is its ability to feel like a conversation rather than a lecture. This hinges on replacing passive drip sequences with event-triggered messages. Drip campaigns are time-based and can often feel generic, while trigger-event strategies feel responsive and personalized.
Designing Trigger Events
By focusing on what the user does rather than when they do it, you tailor the experience. This sense of personal relevance can boost engagement rates significantly. Here's how to design an effective trigger-event map:
- Map the User Journey: Understand the key steps in the user's early journey.
- Link Messages to Actions: Ensure your SMS messages respond to user actions.
- Prioritize Value: Ensure every message adds value or aids the user's journey.
What to Ask vs. What to Tell
The balance between asking the user for information and telling them what they need to know is crucial. SMS should be a utility for the user, helping them make their journey easier and becoming more invested in your product.
Effective User Interaction
- What to Ask: Use SMS to gather quick, actionable feedback. Short surveys about their initial experience can be invaluable.
- What to Tell: Empower them with information that smooths their journey. Best practices, top features, and even short tips can guide users effectively.
Transitioning from SMS to Email
Once users are engaged and past the initial onboarding phase, they might be ready for the more detailed, in-depth guidance that tailored emails can provide.
Handing Off Effectively
The transition from SMS to email should feel seamless:
- Identify Engagement Thresholds: When a user reaches a point of higher understanding or interaction comfort, transition to email for deeper dives.
- Use SMS to Introduce Emails: An SMS hinting at a deeper resource or course available in their inbox can smooth the changeover.
- Consistency in Messaging: Make sure the brand voice and key instructions appear consistently in both SMS and email campaigns.
SMS vs. Email for Onboarding
| Aspect | SMS Onboarding | Email Onboarding |
|---|---|---|
| Open Rate | ~98% open rate | 15-25% open rate |
| Read Time | Within minutes of receipt | Can be delayed by hours |
| Engagement | High engagement due to brevity and directness | Engagement varies, but can be deeper with rich content |
| Best For | Immediate actions, quick feedback, guiding users live | Detailed guides, in-depth content, complex information |
Getting Started with SMS Onboarding
Creating an effective SMS onboarding sequence doesn't have to be complex. Start small, test assumptions, and adapt based on user response. Here's how you can launch your SMS onboarding:
- Define User Milestones: Start with clear markers in the user journey.
- Design Triggers: Map specific user actions to SMS events.
- Craft Value-Delivered Messages: Ensure each message adds clear value.
- Measure and Adapt: Use metrics to track success and make informed adjustments.
Conclusion
SMS onboarding sequences, with their immediacy and engagement potential, offer an effective means to guide and retain new users for your SaaS or service business. The combination of milestone-based interaction and timely messages can minimize churn and boost user activation. If implemented thoughtfully, SMS can transition users to a stage where email becomes the ideal medium for in-depth communication. ReadySMS provides the toolkit you need to begin this journey — but the principles here can be applied regardless of the service provider.