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The Cost of Bad Onboarding: A Preventable Revenue Drain (Infographic)

Author: Tara Benyousky

Published: May 20, 2025

Last updated: May 22, 2025

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The first 90 days after a customer signs are make-or-break. And yet, many teams underestimate how much poor onboarding is quietly costing them—through stalled value delivery, customer confusion, team burnout, and ultimately, churn.

In fact, up to 67% of churn happens in onboarding.

Let’s break down where that revenue is leaking and what to do about it.

Onboarding Is the Moment of Truth

This is the handoff from “promise” to “proof.” But for many customers, it’s the moment where everything starts to unravel.

Instead of a clear, guided path to success, new customers often face:

  • Confusing or inconsistent next steps

  • Long delays before value is delivered

  • Reactive support instead of proactive guidance

What should be a momentum-builder turns into a momentum-killer. Customers get frustrated. Engagement drops. Renewal becomes harder. And expansion is now off the table.

We compiled the stats and facts about why customer onboarding is your most overlooked revenue lever. Check it out in the infographic below 👇

The Cost of Bad Onboarding

 

The Hidden Costs of Bad Onboarding

Behind every clunky spreadsheet, misaligned task list, or ghosted customer is a hidden revenue drain. Here’s what the data shows:

  • 89% of buyers will switch to a competitor if onboarding feels too complicated.

  • 55% will stop using a product they don’t understand.

  • 67% of churn happens when issues aren’t resolved early in the experience.

It’s not just frustrating for customers—it’s a direct hit to your bottom line. All that effort to win the deal is wasted if customers don’t get what they need to succeed right away.

Strong Onboarding = Strong Revenue

The impact of great onboarding isn’t just anecdotal. It’s measurable.

Companies that invest in onboarding see:

  • 2.5x higher customer expansion rates

  • Faster time-to-value (customers onboard 30–50% faster)

  • 50% improvement in retention

  • 60% less time spent on manual onboarding tasks by CS teams

  • More referrals and upsells—with 75% happening in the first 90 days

First impressions don’t just matter. They drive revenue.

Why Tech Makes or Breaks the Experience

Many onboarding teams are still juggling 4–6 disconnected tools to manage each new customer. That’s a recipe for missed steps, frustrated teams, and dropped balls.

Modern onboarding platforms like OnRamp are built to streamline the entire process:

  • Automated onboarding launches triggered directly from your CRM

  • Personalized workflows tailored to customer needs

  • Guided momentum nudges to keep customers progressing

  • Self-serve dashboards, reminders, and project trackers to increase visibility and reduce support tickets

The right tools eliminate chaos, increase transparency, and help teams scale without burning out.

Don’t Let Onboarding Failures Sink Growth

If you’re losing 67 out of every 100 new customers to poor onboarding, the costs add up fast:

  • Wasted customer acquisition spend

  • Delayed or lost renewals and expansions

  • Burned out CS and implementation teams

That’s not just a customer experience problem—it’s a growth problem.

Ready to Fix It?

Onboarding isn’t just a box to check. It’s your first and best chance to deliver real value and drive long-term revenue.

If you’re ready to stop losing customers in the critical early days, it’s time to rethink how you onboard.

Tara Benyousky

Tara Benyousky is the VP of Marketing at OnRamp. A go-to-market leader and advocate for helping businesses get real value from their tech stack, she champions a better way for companies to onboard customers—getting them to that “can’t imagine a day without it” moment faster.