What is Customer Onboarding?
Customer Onboarding is all about the user. From the moment a customer begins their journey with your company’s product or service, the onboarding experience helps them find their way. The process is focused on offering great customer service, thereby creating a favorable experience and opening the door for a long-term relationship to be forged. Getting your customer onboarding experience right is critical for the long-term success of your company.
Because customer onboarding is about the customer’s experience and fostering relationships, its methodology can be applied to any subscription-based business. A successful plan will include familiarizing customers with the products you offer as well as demonstrating how the product can positively impact their lives.
When Does Customer Onboarding Come Into Play?
If you have just started a new business, you may wonder when the customer onboarding process comes into play. To understand this, you need to think about the fundamentals of your company.
You started your company because you were inspired to offer a product or service to the public. Once your product was created, you had to get the word out that it was available. To do this, you created a great marketing campaign to advertise the product. You may even have created fantastic landing pages that were all set up to convince visitors that you have the product for them. The end result of this hard work is the visitor deciding to convert themselves into a customer. Congratulations!
At this point, you may be thinking that you have created a great system and you are able to sit back and relax. The truth is, however, that the work is only half done. Once someone has converted themselves into a customer, your customer onboarding process kicks in.
Why is Customer Onboarding Important?
A growing problem in the digital services sector is that customers are signing up to receive a product or service, only to never visit that site again. In fact, a 2017 study on mobile app users found that 24% of users never come back after their first visit. The same study also found that 63% of users will visit an app only 10 times. These statistics are astounding if you are interested in customer retention.
A growing problem in the digital services sector is that customers are signing up to receive a product or service, only to never visit that site again. Click To Tweet
It’s interesting to examine why customers may abandon sites at the beginning of the relationship. Common reasons include:
• No explanation on how the product/service works
• Expectations on what the product/service does are not managed
• No reason to use the product/service regularly
• The value of the product/service is not explained
If your site does not address these issues, you may be facing similar challenges with customer retention.
Benefits of Customer Onboarding
While onboarding is focused on customer satisfaction, the customer is not the only one who benefits from this process. When the customer is happy, the company ultimately benefits. Here are some benefits of a properly executed customer onboarding plan.
Increased Customer Loyalty
J.D. Power conducted a study to look at how onboarding affected customer satisfaction. They found strong onboarding processes resulted in improved retention, increased sales and more referrals.
Increased Revenue
It takes a lot of time, effort and money to try and win over new customers. You first need to convince them that you know what you are talking about, and then you must convince them that your product is what they need.
Existing customers, on the other hand, have already been won over. If they have had a good experience with your company, there is an increased likelihood that they will buy from you again. When 80% of a company’s future revenue can come from 20% of its existing customers, this is a group that your company should not neglect.
Therefore, if you create a positive experience for customers at the beginning, you may be able to have them purchase from you again. With some great customer service, you can increase your revenue with little cost to you.
Reduced Overhead Costs
Part of a great customer service experience is the ability for a customer to learn more about a product and to be able to troubleshoot basic problems themselves. This not only helps them appreciate the product more, but also allows them to obtain information on demand.
For companies, a well-educated customer base has a different benefit. With customers encountering fewer issues, your company can reduce the amount of overhead it has in this area.
Final Thoughts
Customers expect convenience, and when a company takes the time to enhance their customer’s experience, it benefits both the customer and the company. A properly executed customer onboarding experience can result in loyal customers and increased revenue. If you have not formulated an onboarding plan for your company yet, there’s no better time than now to start one today.
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