According to Thomson Reuters, 89% of clients go through an onboarding that creates friction and frustration, and as a result, 13% choose to switch for a competitor. These numbers might sound shocking, but research and evidence show that most companies lose clients before acquiring them.
According to research by McKinsey & Company, every one-point increase in customer onboarding satisfaction on a 10-point Net Promoter Score (NPS) scale equaled a 3% increase in customer revenue. That’s huge.
What makes a good customer onboarding process, what are the challenges, and why do companies keep on underperforming in this specific part of their customer acquisition? Let’s shed some light.
- Information Overload
It makes perfect sense that when you are onboarding a new client, you have a lot to tell them, show them, and share with them. Do not let your eagerness share all the exciting things about your product/service be the reason people jump off the onboarding ship.
Keep in mind that people can lose their concentration and can get overwhelmed very quickly. Dropping a ton of information might be an attempt to help and educate them, but the way you share that information can be crucial in whether it has a positive or negative impact.
For instance, according to Wyzowl, 97% believe video is an effective tool to welcome and educate new customers. Pack a lot of information into video content, or even use video as one of the KYC steps necessary to onboard clients. It’s easier, faster, and as research shows, it is highly effective.
- Inaccessible Customer Support
Customer support is often associated with existing customers. The truth of the matter is that people trying to become customers and are going through the onboarding process need help and assistance as much, if not more, than existing customers. Any difficulty in accessing customer support can create reasonable frustration.
Easy access to customer support can prove to be pivotal during the onboarding process.
- Long, Arduous Process
Onboarding duration is critical in the decision-making process of a prospective client. The longer it takes, the greater are the chances that someone will drop out. How do you cut this process short? How do you optimize it?
- Be digital-first - Eliminate all manual processes. People should be able to start and complete the onboarding process digitally. It’s fast, it’s accessible, and it takes a fraction of the time.
- Use simple language - Avoid jargon, corporate lingo, and talk to people directly and conversationally. Get them to act instead of scratch their head.
- Give them feedback during the process - Interacting with people who complete the necessary steps is essential in urging them to take another action forward. Offering advice, pointing mistakes, and clarifying different sections can fast-track a person’s journey and cut the total time significantly.
- Make sure they interact with your product, not simply create an account - Onboarding should have a clear finish line, and that line should be when the new customer interacts with your service. Going through the KYC process, account verification, and profile creation should not count as a successful onboarding process.
Choose Identomat For A Smooth Customer Onboarding
Our team here at Identomat is at the forefront of modern onboarding solutions that ensure you stop losing customers and, instead, increase retention and traction. Feel free to reach out, and inquire about our solution, the features, the technology, and areas we can help you with.