Your users are leaving before they've even started.

There's a growth playbook that almost every B2B SaaS team follows. It goes like this:

Spend money to acquire users. Watch the signups come in. Celebrate the metrics in the Monday standup. Then quietly wonder why the revenue isn't following.

The dashboards look healthy. Traffic is up. Signups are steady. But somewhere between "create account" and "become a paying customer," most of those users vanish.

They don't complain. They don't leave angry feedback. They just stop logging in.

The default response is almost always wrong.

When growth stalls, the instinct is to spend more on acquisition. Run more ads. Publish more content. Hire another Sales Rep. Pour more water into the bucket.

But the bucket has holes in the bottom.

Every dollar spent on acquisition is wasted if users leave before they experience the thing that would have made them stay. And in most B2B products, that's exactly what's happening.

This isn't a churn problem. It's not a pricing problem. It's not a feature problem.

It's an onboarding problem wearing a different disguise.

The Bad Onboarding Death Cycle

Here's the pattern I've seen play out hundreds of times across 20 years of working with SaaS products:

1. Users sign up but don't stick. They create an account, look around, and leave before they find value.
2. Growth flattens. The team sees the numbers plateauing and panics.
3. The response: acquire harder. More budget for ads, more content, more outbound.
4. New users arrive, and the same thing happens. They leave too, because nothing changed about the experience that was losing them in the first place.
5. Repeat.

This is the death cycle. It looks like a growth problem from the outside, but it's a retention problem caused by a broken first experience.

The clearest signal: if users who make it past 90 days tend to stay, the problem is almost certainly in how new users experience your product, not in the product itself. Churn in that window is rarely about features or pricing. It's about users never finding their footing.

Why "more features" won't save you

I've sat in rooms where teams are planning their next quarter of product development, and the roadmap is packed with new features. Meanwhile, 70% of their trial users never completed setup.

New features are built for people who already understand your product. They don't help the user who signed up yesterday and couldn't figure out where to start.

The problem isn't what your product can do. It's that new users never get to the part where they see what it can do for them.

The promise-delivery gap

There's a moment in every user's journey that determines everything: the gap between what they expected and what they experienced.

Your marketing promised a transformation. Your sales team painted a picture of a better workflow, a more efficient team, a problem finally solved.

Then the user logs in for the first time.

And they see a blank dashboard. Or a 12-step setup wizard. Or a product tour that explains features instead of outcomes. Or nothing at all: just the product, unguided, waiting for them to figure it out.

That gap between promise and delivery is where users decide whether to invest more time or cut their losses. Most cut their losses.

The real metric that matters

Most teams track the wrong things when it comes to onboarding. They count how many users completed the product tour. How many clicked through the welcome email. How many filled out their profile.

None of that matters if the user didn't experience value.

The metric that actually predicts whether someone will stick around, pay, and grow with your product is this:

What percentage of new users reach repeatable value within a defined time window?

Not "used the product." Not "completed setup." Reached repeatable value: they accomplished something meaningful, and they know how to do it again.

That's your North Star for onboarding. Everything else is a vanity metric.

Onboarding is not a straight line. It's a loop.

Here's where most people get onboarding wrong: they think of it as a linear path. User signs up, goes through setup, hits a milestone, and they're "onboarded." Done.

But that's not how it works in practice.

Great onboarding is a loop: a self-reinforcing cycle where each win creates the momentum for the next one.

Think about it this way:

The Activation Loop: A user reaches a meaningful outcome in their first session. Not a completed checklist. An actual result. That result creates enough pull to bring them back for another session, where they reach another outcome. Each loop builds confidence and investment.

The Retention Loop: Users who found value once learn to find it again, and again. Each cycle unlocks new capabilities, celebrates new milestones, and deepens the habit. The product becomes part of their workflow not because you told them to use it, but because each loop made the next one easier and more rewarding.

The Upgrade Loop: Users who are genuinely getting value don't need to be sold on paying more. Each loop through deeper features and expanded use cases creates a natural moment where upgrading is the obvious next step. Not because you pushed; because they pulled.

These three loops feed each other. Successful activation loops compound into retention. Strong retention creates natural upgrade moments. And upgrades unlock new activation loops; new features to learn, new value to discover, new wins to achieve.

That's The Onboarding Loop. It's the framework I built after watching hundreds of products struggle with the same problem: treating onboarding as a one-time event instead of a continuous cycle of value delivery.

What this looks like in practice

One of the clearest examples I can point to is Heatmap.

When I started working with them, they had a familiar problem: signups were healthy, but users weren't converting. The product was powerful: it could show you exactly where revenue was happening on your website, down to the pixel. But new users weren't getting to that insight fast enough.

The onboarding was a straight line that asked users to do too much before they saw anything valuable. Setup took too long. The first experience was overwhelming. By the time users could have had their "this is incredible" moment, most had already left.

We redesigned the entire first experience around the loop. Instead of a linear checklist, we focused on getting users to one meaningful insight as fast as possible: their first activation loop. Then we designed the experience so that insight naturally led to the next one, and the next one.

The result: 250% growth after the onboarding redesign.

Not from spending more on acquisition. Not from building new features. From fixing the experience between signup and value.

The uncomfortable question

Here's what I want you to sit with after reading this:

What percentage of the people who sign up for your product actually experience the thing that would make them stay?

Not "use the product." Not "complete onboarding." Experience the transformation: the moment where they think, this was worth my time, and I want to come back.

If you don't know that number, that's the first problem to solve.

If you do know it, and it's below 40%, onboarding is almost certainly the reason.

The good news: this is fixable. And when you fix it, everything else gets easier; retention improves, expansion happens naturally, and acquisition spend actually converts into revenue.

The rest of this master class is about how to think about that fix. Not the tactics: the thinking behind it. The frameworks, the mental models, and the principles that separate onboarding that works from onboarding that just exists.