Customer onboarding. You’ve probably heard of this term before stumbling upon this article, which makes sense, given it’s importance. Matter of fact, it’s proven that companies with good onboarding strategies have a higher rate of success because of their increase of customer retention.
The basis of effective onboarding is understanding your customer. When you understand your clients, you can give them a better experience, which eventually leads to customer retention. New York Times Business best-selling authors, Emmett and Mark Murphy, state that increasing your customer retention by just 2% impacts your business the same as decreasing your costs by 10%.
Nowadays, delivering a great experience isn’t based on service-alone. You have to go the extra mile to satisfy your customers. In this article, we’ll dive into what customer onboarding entails and how to make the most out of it. So let’s get right into it.
What is customer onboarding?
Customer onboarding is basically the initial process between you, as a brand, and a new acquired customer. It consists of making the first experience with your brand as seamless and helpful as possible for your new customer. It’s a common misconception that your onboarding strategy ends once the sales process is finalised.
However, signing the dotted line means you’re only half-way there.
Essentially, this would be the time when your onboarding strategy really takes off. The first interaction can very much set the tone for your future relationship. This can be the first email, the first log-in or the very first moment they use your product. Furthermore, it’s how you deliver the customer experience that will determine whether they’ll come back for more.
Why is customer onboarding so important?
Customers have high expectations and it’s up to you to meet them from the first moment of interaction with your service to the final step of the onboarding process. This on-going process consists of the steps your new customer is going to take in order to get acquainted with your product or service. Within this process, it’s very important to not underestimate the post-purchase moment. Buyer’s remorse is common in all humans because of the physical mechanism in our brain. It’s important to be present and fortify their decision. The way you’ll do so can increase customer lifetime value and prevent customer churn.
An efficient onboarding strategy leads to long-term success. “Your clients are the key to profitability and faster revenue growth, and nurturing long-term customer relationships is critical to the success of your business.”
Increasing customer retention is what any company wants; for their customers to stay and for them to be loyal to your brand. If your customers are happy, it will be more likely for them to share their experience with others and eventually get you more customers. All in all, you are bound to have an overall increase of revenue in the long term. Research by Bain & Company also states that increasing customer retention rates by 5% increases profits by 25% to 95%.
How to improve your onboarding strategy?
The heart of customer onboarding is customer experience; and how a successful onboarding strategy goes beyond the first interaction. Let’s see how to make the most out of it.
To conclude this article, it’s safe to say that implementing a customer experience-based onboarding strategy seems to benefit both, you and your customer. If you haven’t already, do so; And if you already have one, there’s always room for improvement. As stated above, understanding your customer should be a priority, providing all necessary information along the onboarding process as well. As your business evolves, so do your customers. It’s important to see them as one of your own. You want to onboard them as you would onboard a new employee. Make your strategy fit to what you wish you would want to experience, that is key.
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