Tenant onboarding

In SaaS, tenant onboarding is the process of preparing a new customer (tenant) to start using the application. It’s the moment when a customer first interacts with your SaaS product, so the experience should feel seamless and intuitive while also building trust by demonstrating that your platform is secure and reliable.

A well-designed onboarding process not only sets up the resources and configurations needed to start using the SaaS application but also helps new customers quickly understand how to use the product. It involves many parts that work together to give new customers a smooth start with your SaaS application. Let’s explore the key parts of tenant onboarding that shape the first experience and set the stage for long-term relationships.

Resource provisioning sets up the resources a new tenant needs to operate within the SaaS environment. This includes allocating databases, storage, compute, and other resources, ensuring that every new tenant has all the infrastructure needed to start using the SaaS application.

Initial configuration ensures that a new customer’s environment is customised to match their specific needs. This includes adding users, assigning roles, and enabling authentication methods such as SSO or MFA. It’s also where tier-specific settings, such as features and limits, are configured to ensure that the tenant starts with the right set of capabilities from the beginning.

Data initialisation focuses on getting the customer’s data ready for use within the SaaS application. It often involves importing initial datasets and validating that everything is properly mapped and formatted. This ensures the tenant can start using the application with their own data right away.

Third-party integrations involve setting up the connections between the SaaS application and the external tools or systems. SaaS applications don’t usually live in isolation, they are part of a bigger digital ecosystem. Most businesses rely on a mix of tools to manage their operations, such as CRMs, ERPs, payment gateways, analytics platforms, and communication tools. That’s why SaaS applications usually have integrations with other systems, enabling unified workflows across the entire tech stack.

User enablement ensures that users can effectively use the SaaS application from day one. It typically includes onboarding guides, in-app tutorials, access to documentation and training sessions. The goal is to help users quickly understand key features, build confidence, and start realising value from the product as soon as possible.

Tenant onboarding in a SaaS application is typically evaluated using specific metrics that measure how effectively new signups are converted into active, satisfied customers who achieve value. Let’s look at some of these metrics.

Time to Value (TTV) measures how long it takes for a new tenant to experience the first meaningful outcome from your SaaS product. A shorter TTV means customers see value faster, which positively influences satisfaction and overall adoption.

Activation rate in SaaS measures the percentage of tenants or users who complete a key set of actions indicating they’ve achieved initial value from the product. It reflects how effectively your onboarding process converts sign-ups into active users.

Early churn measures how many tenants leave soon after onboarding, indicating they didn’t find enough value early on. A high rate usually points to gaps in the onboarding experience, such as unclear guidance or slow time-to-value.

Cost per onboarded tenant measures how much it costs your business to successfully onboard a new tenant to your SaaS product. It includes expenses such as customer success team time and support resources. Tracking this metric helps you evaluate the efficiency of your onboarding process and identify opportunities to reduce costs.

When it comes to tenant onboarding in SaaS, there’s no one-size-fits-all approach. The right strategy depends on your product’s complexity and the size of your customers. Let’s explore the most common ones.

Self-service onboarding is an approach where the customer takes the lead in the onboarding process, guided primarily by the product itself. In-app walkthroughs, documentation, and automations make it easy for users to configure settings and reach value without much human assistance. This model scales efficiently, especially for smaller customers, making it a good choice for low-touch SaaS businesses.

Managed onboarding is an approach in which your team, or sometimes a partner, guides the customer through the onboarding process. It often includes personalised training, hands-on configuration, and support for custom integrations tailored to the tenant’s specific needs. This approach works best for complex products or enterprise customers who require more guidance and alignment with their specific workflows.

Concierge onboarding provides a white-glove experience where every step of the onboarding is personalised and closely managed by your team or a partner. It goes beyond standard setup by deeply understanding the customer’s goals, tailoring configurations, and handling most of the technical and data migration work on their behalf. This approach is better suited to high-value enterprise customers who expect premium, end-to-end service and a seamless transition into the SaaS product.

In reality, you don’t have to stick to just one onboarding type. You can mix and match approaches based on customer tiers, for example, offering self-service onboarding for lower tiers and a more hands-on, managed experience for higher-tier customers.

To create an onboarding process that fits your business model, start by asking yourself a few key questions. Your answers will guide you toward the right approach and decisions.

How many customers do you aim to onboard annually?
Knowing how many customers you plan to onboard annually helps to determine the scalability and level of automation needed in your onboarding process. If you plan to onboard thousands of customers annually, you’ll need a self-service onboarding process with a high level of automation and strong in-app guidance. But if you expect to onboard only a few high-value enterprise customers annually, a managed or concierge approach makes more sense.

What steps are included in your onboarding process?
Understanding the steps included in your onboarding process helps you identify which parts can be automated, standardised, or require human involvement. It clarifies the customer journey from sign-up to first value and highlights any bottlenecks or gaps. A fully documented onboarding process is essential to creating a consistent and scalable onboarding experience that aligns with your SaaS model and meets customer expectations.

What customisations do your customers require?
Knowing what customisations your customers typically require helps to determine how flexible and configurable your onboarding process needs to be. Heavy customisations may require a managed or concierge onboarding approach. In contrast, if customisation needs are minimal, focus on standardisation and automation to accelerate onboarding at scale.

What metrics do you track to assess onboarding success?
Knowing which metrics to track for tenant onboarding helps you assess how effectively your process guides new tenants to value. It also highlights where users might struggle or drop off, providing clear direction for improving the customer experience and increasing retention.

The tenant onboarding process is when new customers experience your SaaS product for the first time. A well-designed onboarding process sets the foundation for the entire customer relationship. Whether automated or hands-on, effective onboarding turns signups into satisfied, long-term customers.