As investors pivot from a growth-at-all-costs mindset to a renewed focus on profitability, the idea of product-led growth (aka self-serve buying) and the promise of lower customer acquisition costs continues to gain in popularity.
However, many product-led-growth sales funnels have a core problem; buyers entering the funnel don’t understand how to use the product to address their needs. They get frustrated, give up and the company ends up with a poor conversion rate.
The 3 keys to solving this problem and improving conversion in a self-serve funnel are:
Define your first impact milestone
Focus your onboarding sequence on your first impact milestone
Onboard your customers manually
1. Define your first impact milestone
Most self-serve customers fit into the end-user profile—they want to use the product day-to-day to perform an existing task more efficiently (the often called “job to be done”). The sooner they see that the product enables them to perform the task, the less likely they are to give up and the more likely they are to convert.
Your first impact milestone is that magical moment when your customers realize that your product does what they need it to do. Every product has its own first impact milestone. Here are some examples of first impact milestones in B2B and B2C products: