Customer onboarding is a vital element of business — if you don’t prioritise it, you’re going to be left behind. But what does it mean, exactly? Customer onboarding refers to the process that optimises the initial stages of customer acquisition. It offers content that enhances the customer experience, gives instructions, and provides support.
With innovative software and apps, the implementation of such a tool is more convenient and streamlined than ever. Precursive, for example, has proven that its software reduces onboarding time by half! Not bad. Anyway, enough introduction. Let’s discuss three tangible benefits you will see from utilising a top-quality customer onboarding experience.
1. Better loyalty
A great onboarding process teaches the customer how to use the app or software properly. This is vital because, according to TechRepublic, 80% of people delete an app because they don’t know how to use it properly. If your customer continues to hit barriers as they try to come to grips with their new investment, they are only going to become more and more frustrated. Don’t wait for your customers to come to you for support, as the chances are they won’t. You will have lost the opportunity to win them over as a loyal, returning customer.
With a great onboarding experience in place, you can ensure that your customers gain the most value from using your product or service as possible, without having to jump through multiple hoops. They’ll appreciate the smooth experience and are more likely to remain a loyal customer for some time.
2. Decreased acquisition costs
Acquiring new customers is much more expensive than retaining existing ones. Customer lifetime value (LTV) is how much revenue a business makes from a customer throughout the entire period of a relationship. If customers stay loyal and have a longer LTV, you won’t have to pump resources into attracting and converting new leads each month to hit targets. Instead, the budget can be distributed to grow at a healthy sustainable rate, with more focus on improving the product or service rather than convincing people to buy it.
With this in mind, it’s worth investing in an effective onboarding process that boosts customer retention. First impressions count, so ensuring the initial stages of a customer’s interaction with your brand are perfect will increase the likelihood of their long-term stay, and thus long-term business. Your increased LTV of existing customers will help drive further company growth while maintaining profit margins.
3. Reduced customer queries
When things go wrong or if customers have a question, you want to be there to limit their dissatisfaction and protect your brand’s reputation. If you can solve their problem with efficiency, it might even enhance your reputation and their trust in you, even though they initially came to you with an issue. Each query is an opportunity to display your empathy for them as customers and a chance to build on existing brand affinity.
A comprehensive onboarding process is one way to do this effectively. Understand the common questions your customers are likely to ask and have the answer appear before they even need to contact your customer service team. This, of course, makes a drastic reduction in the number of messages received by your support team. Not only does this reduce costs, it helps to free up your team to deal with other, more complex customer queries. Plus, your customers don’t want to wait around in a queue for a live chat or spend time on the phone waiting for the answer to a simple set-up question. You are putting out the fire before it even starts: that’s top-notch customer service.