According to a Deloitte study, 38% of new bank customers abandon the account creation process if it is too complex or requires too much information. And yet, optimized customer onboarding can significantly convert visitors into new customers for a business establishment, and thus boost sales.
Here are 9 easy-to-follow tips to improve your remote customer onboarding process.
Remote customer onboarding and conversion rates: definition and challenges for your company
What is customer onboarding?
Digital customer onboarding, also known as remote relationship entry, refers to all the steps and procedures implemented to welcome and integrate a new customer into a structure via online tools and platforms. This process aims to simplify, secure and optimize the customer’s experience when registering or interacting with a company’s services for the first time.
In today’s age of digitized services, an effective digital customer onboarding process is vital to building a lasting relationship of trust with your customers. It generally consists of several key stages: personalized welcome, collection of personal information and verification and validation of the user’s identity.
What is a conversion rate?
The conversion rate, or transformation rate, is a key performance indicator (KPI) that measures the percentage of users who have carried out a specific action, be it a purchase, a registration, or the downloading of content on a given website or application.
In the context of customer onboarding, the transformation percentage measures the percentage of users who have completed the remote subscription procedure and thus become customers of the company (or, as an existing customer, have subscribed to another service). In this context, the KPI is strongly correlated with the concept of customer retention, i.e. a company’s ability to keep users within the customer journey: the longer they stay, the greater the likelihood that they will convert.
Find out more by downloading our free replay of the Webinar entitled “Webinars & Replays”.Customer onboarding: what can be done to boost conversion?”
What is a good conversion rate in customer onboarding?
How to measure your customer onboarding transformation rate
To measure the transformation percentage of your customer onboarding, you need to follow these successive steps:
- Use an analytics tool/software to track the user journey from onboarding to purchase/subscription.
- Retrieve the data corresponding to the number of users who started the procedure and the number who completed it.
- Calculate the transformation percentage by dividing the number of users who have completed the customer onboarding process by the number of users who have started it.
To improve your onboarding process, you’ll need to identify exit points, i.e. the phases where users leave the onboarding process without completing it.
Example: Let’s say that over a given period, 300 people started the process of opening a current account with a bank, but only 220 completed it. In this case, the conversion rate is 73.3% (CT = (220 / 300) x 100).
What is a "good" conversion rate for customer onboarding?
In reality, the answer to this question depends on many factors, such as the sector of activity, the product or service offered, the target market (B2B, B2C…), the type of company, etc. A customer onboarding KYC procedure, with its compulsory addition of remote identity verification steps, will therefore necessarily be more restrictive for a user than a more conventional procedure. Depending on the situation, the dropout rate may be higher.
To give you an idea, at Netheos we consider that the conversion percentage of a customer onboarding is considered “good” from :
- 55% for KYC procedures
- 65% for conventional procedures
For information, the average transformation percentage for a customer onboarding process is 20-30%. By way of comparison, Netheos customers record percentages of up to 87%.. Let’s take a look at how to boost this figure and get your sales off the ground.
Make an appointment with one of our experts to find out how Netheos solutions can help you verify the identity of your users, securely and without loss of conversion.
Customer onboarding: 9 tips to boost your conversion rate!
Here is a list of our recommendations for optimizing your customer onboarding and gaining in transformation:
Simplify the registration process: The fewer barriers there are to registration, the more likely customers are to complete the process. Make sure your registration form is simple, intuitive and asks for only the essential information.
Optimize for mobile: With the ever-increasing use of smartphones to access online services, make sure your onboarding process works perfectly on all mobile devices in terms of both design and functionality.
Use progressive authentication: Start by asking for basic information so as not to discourage potential customers. You can always ask for more details once the user has started to engage with your service.
Personalize the experience: Use the data you already have to personalize the onboarding steps. Welcome messages, product recommendations and relevant user tips can strengthen customer relationships.
Integrate fast, secure identity verification: Identity verification is a necessity, but it doesn’t have to be a burden. Integrate fast, effective remote identity verification solutions that secure without slowing down the process.
Provide clear help and guidance: Step-by-step guides, detailed FAQs, tutorial videos or a live chat service are ways of assisting customers during onboarding, increasing their confidence and reducing abandonment.
Encourage action with incentives: Offer promotions, free trials or bonuses to motivate new users to complete their registration and start using your service.
Ensure post-onboarding follow-up: Send e-mails or notifications to remind customers of features they haven’t yet explored, or to ask for feedback. It shows that you care about their experience and stimulates engagement.
Continuous analysis and optimization: Use customer data and feedback to constantly improve your onboarding process. Rigorous analysis of friction points helps refine the onboarding experience and increase conversion rates.
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