How Onboarding Videos Cut SaaS Churn by 30%

Why Onboarding is Critical for SaaS Success

You’ve won the signup. A new user creates an account. But within days, many disappear. Most users stop using a product simply because they don’t understand how to get started. In SaaS, that means churn: users cancel before they ever see the value of your tool. This is where onboarding videos make all the difference.

According to a study by UserLens, a strong onboarding process helps users quickly see value in your product, which directly impacts retention and profitability.

What an Onboarding Video Is

An onboarding video is a short, clear animation or screen recording that guides new users through their very first steps. Instead of overwhelming them with text instructions or tooltips, it shows:

• How to get started quickly

• The two or three actions that matter most

• The results users will see immediately

Think of it as a fast track to success. When users see value in the first session, they’re much more likely to stick around.

How Onboarding Videos Impact Retention

Companies that use onboarding videos often see far fewer support requests in the first month. A smooth start also builds user confidence, helping them complete setup faster and stick longer. Positive onboarding experiences can significantly improve retention and reduce early churn.

Research indicates that onboarding processes that use behavior data can boost retention rates by up to 50%. Userlens

Why Motion Design Works Best

Motion design onboarding videos combine product UI with engaging visuals and storytelling. The benefits:

• Clarity: Users see exactly what to do

• Speed: Quick setup without reading long manuals

• Retention: Visual memory helps users remember actions

For SaaS companies, this translates into smoother onboarding, happier users, and fewer cancellations.

Takeaway

If your goal is to reduce churn and improve user activation, onboarding videos are one of the highest ROI tools you can invest in. They guide users to success from the very beginning, turning first-time users into loyal customers.

Ready to create an onboarding video that keeps your users engaged? Let's Talk.