The Challenge of SaaS Onboarding

The increasing adoption of software-as-a-service (SaaS) solutions by businesses doesn't automatically translate to a smooth implementation process. Many new customers report feeling unsupported after the initial sale is complete.

Introducing Onboard: A Customer Success Solution

Onboard, a startup established 10 months ago, is focused on improving the initial experience for SaaS customers. Their aim is to ensure new users are successfully integrated and derive value from their purchases, rather than becoming frustrated.

Founding and Previous Experience

The company was co-founded by Jeff Epstein, previously the founder of Ambassador, a referral and affiliate marketing software company. Ambassador was acquired in 2018, eight years following its inception.

While the financial details of the sale to West Corporation (now Intrado) were not publicly released, Epstein characterized the outcome as positive for shareholders. (Ambassador was subsequently sold again last month to a company based in Seattle.)

How Onboard Operates

Epstein explains the core functionality of Onboard as relatively simple. “Customer segments are defined first, as varying subscription levels may necessitate different implementation steps.” (This could involve utilizing an API or integrating code snippets.)

Following this, Onboard collaborates with the SaaS provider to establish a comprehensive task list, informed by insights gathered during the sales cycle. This results in a dynamic, customizable task list featuring assignees, deadlines, and automated alerts.

A Self-Service Approach

The product is primarily self-service, enhancing accountability and transparency. However, Epstein emphasizes that successful onboarding is a “shared responsibility” between Onboard and its clients. The company is also developing a more advanced notification system with intelligent, non-intrusive automated prompts.

Business Model and Pricing

Currently, Onboard is offering its services to a group of beta customers without charge. The company intends to refine the product before initiating its revenue strategy, according to Epstein. The eventual plan involves charging mid-sized businesses a monthly fee, supplemented by a per-user charge.

“We are not targeting the enterprise market,” Epstein states, indicating a preference for avoiding lengthy contracts.

Competitive Landscape

Onboard is entering a competitive market, with numerous startups addressing the challenges of SaaS onboarding. The need for a dedicated solution was highlighted to Epstein by his co-founder, William Stevenson, who previously served as Ambassador’s VP of Customer Success.

Stevenson, like many in similar roles, encountered difficulties utilizing existing tools such as Monday, Asana, Basecamp, or Google Docs to effectively manage the onboarding process.

Investor Perspective

Jonathon Triest of Ludlow Ventures, who led a $1.25 million seed funding round for Onboard alongside Zelkova Ventures and Detroit Venture Partners, shares a similar perspective.

Triest notes that Ludlow’s portfolio companies have consistently been “forced to assemble solutions or utilize tools that weren’t specifically designed for their needs,” particularly within the B2B SaaS sector.

Gaining Momentum

The question remains whether Onboard can establish itself effectively within this competitive landscape. Epstein is confident in his team’s ability to succeed. (Matt Majewski, a third founder, recently joined from Ambassador to bolster the company’s progress.)

Epstein believes his prior experience as a successful founder in Detroit provides a significant advantage. (“We benefited from being a prominent player in a smaller market,” he explains.)

Investor Interest

Epstein also notes a high level of investor engagement. “Partners from venture firms, not just associates, have been reaching out, sometimes through LinkedIn connections,” indicating strong interest in the company’s potential.

Having previously secured funding, Epstein observes that the current level of enthusiasm is unprecedented. “It’s unusual,” he admits, “but encouraging.”