Is a complex onboarding flow always a bad thing, or does it filter out the wrong users?

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We spent weeks obsessing over reducing our signup steps. We removed email verifications, cut down profile setup, and made everything a single click experience certain that drop offs wese happening due to friction.

Retention barely budged. But when we actually looked at the users who completed the quick signup, they churned within 48 hours because they had no idea how to set up their workspace. Adding a bit of purposeful friction (like a quick setup wizard) actually improved our long-term retention.

It made me realize that fast onboarding isn't always better onboarding if it skips user education.

How do you strike the balance between a frictionless signup and making sure users actually understand the product's value?

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