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Customer retention is a key growth lever for any product software company. Yet, many still struggle to keep users engaged beyond the first few months. While there are several contributing factors, two mistakes stand out as particularly common, and avoidable.
Onboarding is your customer’s first real interaction with your product. If this step doesn’t help them clearly understand how to use it or how it solves their problem, they’re likely to drop off early.
Too often, onboarding is rushed, inconsistent, or completely missing. Whether it’s automated, done by hand, or a mix of both, onboarding needs to guide users through the core value of your product. This isn’t just about showing them features. It’s about connecting those features to the outcomes they’re looking for.
In short: a user who doesn’t understand how to use your tool effectively won’t stick around.
A well-designed onboarding process helps new users find value quickly. It builds confidence and increases the likelihood of long-term engagement. Without it, you risk churn before a customer has a chance to see what your product can really do.
The second major mistake is not listening to customer feedback.
When users take the time to share their thoughts, they’re giving you something valuable: insight into what they need, what’s not working, and what could be better. Failing to capture and act on this feedback sends the message that you’re not listening — or worse, that you don’t care.
Customer feedback should be a structured part of your operations, not an afterthought. You need a clear process to collect, assess, and respond to it. And you need to communicate with users about what happens with their feedback. Will their suggestion become a new feature? Is it going on the roadmap? Or is there a workaround available today?
Even when the answer is “no,” acknowledging the input shows users that their voice matters.
This two-way communication builds trust. It shows customers that your team is invested in continuous improvement and genuinely interested in helping them succeed.
Fixing onboarding and feedback loops won’t guarantee perfect retention, but they will dramatically reduce early churn and increase user satisfaction.
Want to learn more? In our article on how to measure and improve customer retention, we walk through practical ways to track retention rates and increase them over time.
