Loom's $975M User Onboarding Secret

Why Loom doesn't care if you sign up.

My first impression of Loom was a bit weird.

Most people probably find Loom when their new colleague sends them one of those "Hey, welcome to the team!" videos. Or maybe when someone on their team explains some complex feature through a quick Loom in Slack.

But nope, not me.

I was just scrolling through X one day when I saw this random dude's tweet. He was showing off his marketing swipe files collection on Notion. Classic lead magnet move – "Hey, drop your email if you want these swipe files."

The video hooked me. I typed in my email. And yeah, I was sold right there.

Here's the thing about Loom though: it's not your typical product where people go "Let me Google for a video sharing tool today." That's just not how it works. Well, it's not Canva. Instead, Loom grows because people share it. If your teammate uses it, chances are you'll end up using it too. Before you know it, your whole company is sending Looms back and forth.

And the timing couldn't have been better.

With remote work exploding (look at Zoom's growth to over 220,400 enterprise customers by late 2023), teams were desperate for better ways to communicate. When Atlassian acquired them in October 2023 for $975M and 25 million customers, it wasn't just another tech acquisition – it was a clear signal that async video communication was becoming as essential as email.

Pretty wild for a tool that basically spreads itself, right?

But here's what really got me thinking: If Loom's growth relies so heavily on word of mouth, how do they turn those first-time viewers into active users? What happens in those crucial moments when someone receives their first Loom link?

Let's explore it together.

Loom’s User Growth Fly Wheel

The magic of Loom starts even before you create an account

Picture this: Tom is a product designer at an Agency. His colleague Wyndo (yes, me!) sends him an email explaining a few problems found on one of their clients' websites. I embed a Loom with a thumbnail and a link in the email.

This is just one-way teams use Loom. I've seen sales teams use it for personalized demos, support teams for bug explanations, and even CEOs for company-wide updates.

Here's where things get interesting: with no signup requirement or app download, Tom instantly jumps into watching my Loom video. This helps Tom reach Loom's core product value: turning a potentially long meeting into a quick, replayable video message. Think about it—a typical 30-minute meeting could be converted into a 5-minute Loom. If you are not excited about this, I don't know what will!

Loom’s Video Page

Did you notice another subtle move in the video?

By default, the video runs at 1.2x speed. This tells Tom he could have saved almost a minute by watching the video. This addresses a common objection: "I'm too busy to watch videos." This move alone helps increase the conversion rate of the video watched, which is the most important metric for the Loom team.

Highlights of Loom's video page: Engage and CTA to try Loom

While Tom is watching, he notices familiar social features like emoji reactions and comments, similar to YouTube. The screen shows two CTAs he can take: "Record a Loom" on the bottom left menu (perfect for quick responses) and "Get Loom Free" on the top right in the navigation bar (though it's subtle enough not to feel pushy).

Auto-comment prompt at the end of the video

As the video concludes, a pop-up encourages Tom to comment with a pre-loaded "Thank you, Wyndo! 🙏" message that captures his sentiment.

Loom’s contextual signup popup

By the time he clicks to comment, Boom! Loom asks him to sign up with a targeted copy to add your name.

The copy also addresses Loom's solution:

"Send a video instead of a meeting invite."

This, right here, is an "Aha Moment" trigger—that instant feeling when users truly understand why they need your product. It's like Canva's moment when you first create your social media banner. What Tom just experienced is a pure core product value.

Timing is everything here!

He came, watched, liked it, and signed up right when he was fired up about doing it.

Notice how natural the flow is!

Here's another interesting move from Loom: If Tom decides to record his Loom while watching my video, he could do it instantly without signing up! This follows the same playbook that made Zoom so successful during the pandemic – remove all friction, let people use the core feature immediately, and trust that the value will make them want to sign up later.

This will speed up the time to "Aha Moment" completely, and Tom will eventually have compelling reasons to sign up.

This flow will repeat when Tom shares it with his other colleagues. Loom grows naturally as more people use and love the products. It's part of a bigger trend in software called Product-Led Growth (PLG), where your product basically markets itself. Companies like Slack, Notion, and Figma all grew the same way – by being so good at solving a problem that users can't help but share it with others. Pretty clever way to grow, don't you think?

This, my friend, is a testament to how product-led growth should work - natural, value-driven, and perfectly timed.

Key takeaway

So what makes Loom's approach so effective? Let's break down the key strategies that any product team can learn from:

1. Time your "ask" perfectly: Loom doesn't push for signups right away. Instead, they wait until users have experienced the product's value – specifically, right after watching a video when they want to engage (like leaving a comment). This shows how crucial timing is in user conversion: don't ask users to commit until they've experienced your "wow" moment.

2. Remove all initial friction: By letting new users watch and even record videos without signing up, Loom eliminates all barriers to experiencing their product. This "try before you buy" approach follows a simple rule: let users experience your core feature immediately, without any commitment. The easier it is to start, the more likely users will stick around.

3. Make sharing a natural part of usage: Loom's growth isn't just about getting new users – it's about making sharing an integral part of the product experience. Each time someone uses Loom, they naturally expose new users to the product, creating a viral loop. This shows how building sharing into your product's core workflow can be more effective than traditional marketing efforts.

Questions to consider for your next product roadmap

1. Finding your "Aha Moment": What's the earliest point in your user journey where people truly understand your product's value?

2. Optimizing the first-time experience: What's the minimum friction needed before a new user can experience your core feature?

3. Building your viral loop: How can sharing your product become a natural part of using it, rather than a separate action?

Remember: Loom's formula works because it perfectly aligns with its product's nature. While these strategies are powerful, they need to be adapted to your product's unique value proposition and user behavior.