Skip to content

Adoption Flywheel: A Key Driver for Growth in SaaS Companies

In the world of software-as-a-service (SaaS), adoption is everything. When users are actively and regularly using a product, it's a good sign that the company is on the right track. But how can SaaS companies drive adoption and keep users engaged over the long term?

Enter the adoption flywheel.

Unlike the sales funnel, a flywheel can create momentum and eventually drive your business, hypothetically, without a sales team. It’s really hard to get there, but possible? Yes!

Adoption-Flywheel-Funnel-SaaS growth

What is an Adoption Flywheel?

One key way to support Product Led Growth (PLG) is through the use of adoption flywheels. An adoption flywheel is a model for driving adoption and user engagement, and it works by creating a virtuous cycle of growth where each new user drives adoption among their peers. This can lead to exponential growth and improved retention over the long term.

By integrating adoption flywheels into their PLG strategy, SaaS companies can drive even more adoption and user engagement.

Here are a few ways to do this:

  • Focus on providing value: The foundation of any successful adoption flywheel is the value that the product provides to its users. SaaS companies should regularly solicit feedback, analyze usage data, and make improvements to the product based on this information.
  • Encourage word-of-mouth promotion: When users are experiencing value from the product, they are more likely to tell their peers about it. SaaS companies can encourage word-of-mouth promotion through social media sharing, in-app prompts, or other channels.
  • Implement referral programs: Referral programs can be a powerful way to drive adoption, as they incentivize existing users to promote the product to their peers. SaaS companies should consider implementing referral programs and regularly promoting them to their users.
  • Make it easy for users to get started: One key aspect of driving adoption through the product is making it easy for users to get started. SaaS companies should focus on providing a seamless onboarding experience and ensuring that users can easily access the core features and functionality of the product.

Why is the Adoption Flywheel Important for SaaS Companies?

The adoption flywheel is important for SaaS companies because it can drive exponential growth in a way that other growth strategies cannot. With each new user driving adoption among their peers, the flywheel can quickly gain momentum and lead to rapid growth.

In addition, the adoption flywheel can help SaaS companies retain their users over the long term. When users are actively promoting the product to their peers and experiencing value from its use, they are more likely to continue using it themselves. This can help reduce churn and improve the overall health of the business.

Product-led User Experience - User Onboarding

Effective user onboarding is key to a successful product-led user experience. It should provide new users with a clear path to follow as they learn about the product and its capabilities. This can include everything from simple instructions and tutorials to more advanced features and functionality. It's important to tailor the onboarding process to the user's needs and goals, as well as their level of experience with the product.

There are several best practices for designing a product-led user experience and effective user onboarding:

  1. Focus on the product's key features and functionality: The onboarding process should highlight the product's key features and functionality and help users understand how to use them.
  2. Make it easy to get started: The onboarding process should be straightforward and easy to follow. It should provide users with the information and resources they need to get up and running quickly.
  3. Reduce the Time-to-Value period for your product by enabling your customer to realize the potential capabilities of your product within a short few clicks.
  4. Provide clear guidance: It's important to provide users with clear and concise instructions and guidance as they navigate the product. This can include tooltips, pop-ups, and other forms of in-app guidance and a good support team.
  5. Use progressive disclosure: Progressive disclosure is the practice of revealing information and functionality in a gradual and incremental manner. This can help prevent users from feeling overwhelmed and ensure that they are only presented with information and functionality that is relevant to them at any given time.
  6. Make it personalized: Personalization is key to a successful product-led user experience. By tailoring the experience to the user's specific needs and preferences, you can make it more relevant and engaging.

In short, a product-led user experience is a design approach that puts the product itself at the center of the user experience and helps guide users through its capabilities. Effective user onboarding is an important part of this process, and by following best practices such as focusing on the product's key features and functionality, providing clear guidance, and using progressive disclosure, you can help ensure that new users are able to get the most out of your product


The adoption flywheel is a key driver of growth for SaaS companies like Undaku, as it creates a virtuous cycle of adoption and user engagement. By focusing on providing value, encouraging word-of-mouth promotion, and implementing referral programs, SaaS companies can leverage the adoption flywheel to drive exponential growth and improve retention.