Which metric indicates a key performance measurement related to customer onboarding issues?

Funnel drop-offs are a critical metric for understanding customer onboarding issues. This measurement refers to the points within a customer journey—often visualized as a funnel—where potential customers abandon the process before fully engaging with the product or service. A high rate of drop-offs at specific stages can signal challenges in the onboarding experience, indicating that customers may be finding it difficult to complete sign-ups, understand the product, or see its value.

By analyzing where these drop-offs occur, businesses can identify obstacles that prevent users from progressing. For example, if many customers drop off at the account setup stage, this could mean the signup process is too complex. Improving these stages can help enhance the overall customer experience and increase conversion rates.

Other metrics listed, while still relevant for evaluating business performance, do not specifically indicate onboarding issues in as direct a way. Churn rate focuses on customers who stop using the service entirely, customer lifetime value measures how much revenue a customer is expected to generate over time, and activation rate gauges how many users successfully reach a predefined milestone. While these metrics can provide insights into the customer’s journey overall, they do not pinpoint the specific onboarding challenges like funnel drop-offs do.