How Can You Make Your Onboarding Process Cost-Effective?
The customer onboarding process can cost your business a fortune if it is complex. In the modern era, consumers expect a seamless way of becoming a part of your company. How can you expect them to not abandon your brand if the process depends upon traditional methods? Well, it is the digital era and you need a cost-effective and frictionless way of onboarding customers. Different studies have revealed that living up to high customer expectations requires a hefty investment in the onboarding process. As unfavourable as it sounds, the investment is one time and rest assured, you get a lot of customers in no time.
Let’s take a look at how you can make your onboarding process cost-effective.
Customer Onboarding – The First Hello to Your Business
The initial interaction of customers with your business is of substantial value when it comes to the customer onboarding process. Your consumers solely consider the process or method you follow to get in touch with them. This process is the first time a customer interacts with you and the slightest discrepancy can result in great losses for them. Did you know that 74% of customers are likely to leave you because of the tedious verification or onboarding process? Moreover, getting new customers is 25 times more costly than retaining your existing customers. The customer onboarding process being the “first impression” of your business must be perfect at all costs. Manually getting a customer is no longer the game because the process consumes hours for completion.
So, what about an automated onboarding process that lets you acquire legitimate clients and that too within seconds? That sounds like a good deal.
Areas Where Onboarding Process Can Cost Your Business a Fortune
Certain areas or stages of the onboarding process are of a great deal to customers. Here are the top three areas where your induction process is eating up millions every year.
1. Manual Processes
Your business is still living in the 19th century and customer acquisition relies upon conventional methods. The manual procedure is cumbersome and requires a lot of time. Apart from time consumption, it needs a team of experts who can complete the process. Here, you are going to face the most difficulties because getting an entire team of highly-skilled people to onboard customers is not a piece of cake. Ready to face another consequence of the manual process? Well, it is prone to errors and you have no onboarding status either. Did you onboard legit customers or there was some error while verifying the identity and you have an imposter on the loose?
The digital world has numerous automated solutions to help you onboard the right customers at the right time without any errors.
2. High Abandonment Rate
As mentioned earlier, you are losing a significant number of customers every year because of the complex and tedious onboarding procedure. According to a study from Harvard Business Review,
“An increased focus on onboarding offers a significant or moderate positive impact over the life of the contract for revenue, client renewals, and client referrals.”
Your customers are craving for a frictionless way to be a part of your business. All you need to do is come up with a solution that can verify your customers and effortlessly induct them. During the onboarding process, the verification measures consume most of the time. Waiting for a long time to get themself verified frustrates customers and leads to an increased abandonment rate. By law, you cannot give up on the identity verification process but you can automate the procedure to make it less of a hassle.
3. False negatives
Since identity validation is essential for businesses during the acquisition process, you must know the fine line between flagging illegitimate clients and flagging the majority of them. As per the law, you have to combat fraudulent activities, which does not mean identifying the majority of the people as high-risk who interact with your business. Here’s what goes wrong without an automated verification process:
Your system might be identifying false negatives or false positives.
False Negatives: Wrongly flagging a legit customer as a fraudster
False Positives: Fraudsters are making their way into your business because verification lacks robustness.
In either case, you are responsible which not only results in high revenue loss but legal penalties as well.
Ways to Improve Your Onboarding Process
There is never a deadlock in such situations and you have tremendous methods to get rid of all the aforementioned areas of the customer onboarding process.
Automate What You Can
At some point, you do need a little human intervention because the manmade intelligence may not suffice for the needs every time. So, you can digitise a few stages of the process. For instance, you have AI-powered OCR technology for effortless data extraction. Through automated OCR software, all it takes is a few seconds to extract data from the identity documents and populate the KYC form.
Incorporate Digital Solutions
ID verification being mandatory for businesses leads us to incorporate digital identity verification solutions that can verify your customers in seconds. Shufti Pro’s identity verification system deploys thousands of AI models to help you get legit consumers in 30 to 60 seconds. From document verification to face verification and consent verification, the artificially intelligent solution from us can help you reduce the drop-off rate.
Make the Process Interactive
The user interface is everything for a business. If it is not interactive, you are likely to lose more consumers. Sometimes, individuals do not get a clear idea about the process and how to respond, so they prefer abandoning businesses. Enhanced UI with simple yet interactive instructions can ease the ID verification process for customers. What’s in it for you? More customers, higher revenue and sound brand reputation.
It All Boils Down To…
Customers in the digital world have many expectations from a brand’s onboarding process. Henceforth, businesses cannot rely on conventional procedures for getting clients onboard. The process must be seamless and interactive for consumers so that they do not leave your business in the middle of the process. One way of achieving this goal is to incorporate Shufti Pro’s digital identity verification solution. The automated solution is capable of verifying your clients in a few seconds with 98.67% accuracy.
You can learn more about the solution from our experts.