Advantages of Online Customer Onboarding

online-customer-onboarding-advantages

Online customer onboarding is a need of the hour. In today’s day and age, not only is it necessary to have a great product, but it is equally important to keep the customer engaged. Statistics show that engaging with customers equals 40% more revenue per person[1]. In addition to having a customer support team, organizations now have customer success teams – which take care of online customer onboarding. The online onboarding process is all about delivering value to the customer no matter how short or long in duration, it is. Online onboarding is delivered through various onboarding software which ensures that the onboarding is an organized process.

Online customer onboarding aims to

  • Make buyer accustomed to a particular product and reducing customer effort[2]
  • Share tips and tricks for the best and various uses of a product
  • Give coupons for future purchases
  • Offer feedback
  • Email newsletters, updates about the product
  • Create a digital channel of sales

The process of online onboarding of a customer is completely different from the traditional marketing of a product to customers. In traditional marketing, the purchase of the product triggered the onboarding. Free sampling and survey post the purchase was a complicated and a lengthy process. In online customer onboarding, the organization may reach out to the customer even before the customer buys a product but the onboarding process is triggered by a purchase.

Benefits of Online Onboarding:

The traditional customer onboarding employed a tremendous amount of time and cost. It included educating the client about a product either by sending salespersons to demonstrate a product, sending brochures and manuals, giving some discount or offering an additional product for free with the purchased product – was a tactic to positively engage the customer in buying again and again from the company.

In online customer onboarding, the aim is the same – it is to engage the customer – but online. The process starts with the subscription/purchase of the product. Online onboarding is popular as it is a time, cost and effort saving method and that there is a need for it as most product buys are happening online. A report from LivePerson[3] backs it up with data saying that 71% of visitors expect help within five minutes when making a purchase online.

Online customer onboarding has become a preferred way to connect with the customer because of the following reasons:

  1. Establish two-way communication – The customer can reach out the organization and vice versa in a matter of minutes. Accenture reports[4] that 89% of customers get frustrated because they need to repeat their issues to multiple representatives. Addressing complaints and conferral of rewards is instantaneous. The digital medium is hassle-free, and that is how most people prefer to get notified of any purchases made online. Cost wise, this is much more easy on the organization’s pocket. Also, communication may be automated (chatbots) or scheduled by the marketing/success teams so that emails flow in continuity and go out regularly.
  2. Cost-effective measure: You do not have to print expensive pamphlets, or hire door-to-door salesman or any other method to reach out to your customer. In the digital world, setting up a social media page to communicate with its prospective customer comes at zero cost. For example, generating leads, obtaining a good ROI, and ensuring customer retention have never been easier for organizations to manage.
  3. Generate Leads: Once the customer subscribes or purchases a product, customer onboarding helps in lead generation and to make most of this opportunity, marketers must offer training, how-to-use manuals and case studies and how it has benefitted others.
  4. ROI and customer retention: Online onboarding, with its crucial stages, can prove beneficial to the companies to retain customers by offering improved customer experience. A Bain and Company research[5] substantiates this by suggesting that a mere 5 percent increase in customer retention leads to more than 25 percent increment in ROI.
  5. Heightened customer experience
    Specific data points in the direction of how vital customer service is to customer experience:
    • “82% say that getting their issue resolved quickly is the number 1 factor to the great customer experience.” – LivePerson[6]
    • “Maximizing satisfaction with customer journeys has the potential not only to increase customer satisfaction by 20% but also to lift revenue by up to 15% while lowering the cost of serving customers by as much as 20%.” – McKinsey & Company[7]
    • “87% of customers think brands need to put more effort into providing a more consistent experience.” – Kampyle[8]
    • Thus customer service and customer experience are sides of the same coin. While ensuring that customer onboarding process progresses smoothly, one must factor in the customer service and experience in their customer satisfaction strategy.

  6. Testing and Analytics: Various permutations and combinations of emailers and a customer database (based on multiple parameters, such a gender, location, etc.) are used and results of which can help marketers to make better decisions about how to approach/change customer onboarding for their customers. Metrics such as open email rates, image click rates among many others increases the value of online onboarding as in the traditional onboarding; such data was difficult to gather before. Testing and analytics also become a feedback mechanism for the marketing and customer success teams.
  7. Eco-friendly: Fueled by accessibility, online customer onboarding is also eco-friendly. In an age of corporate responsibility, switching to a paper-free, green alternative is much advisable. It presents a hassle-free option to customers, too. They may, without the bulk of hard copies, get details, fill applications and seek solutions online. Online customer onboarding is, thus, an ideal green alternative to physical on-boarding. Statistics say that an organization may save $80 per employee annually[9] (expenses related to paper, ink, toner, storage, and postage).
  8. Uninterrupted customer feedback for improved operational efficiency: Feedback is beneficial for the service providers as it helps them improve their operational efficiency and make appropriate alterations to the services. Additionally, when they offer timely solutions, they naturally stay ahead of their competitors.

    An intriguing data on Twitter is that ‘customer service interactions over Twitter have increased 250% in the last two years’. Since everything is online and publicly available, the responses of customer service executives’ may be directly rated by the customers, further increasing the credibility of the business and conversion numbers.

  9. Increased revenue: Millennials are the most prominent segment of spenders who buy products totaling $200 billion. Engaging them should be of paramount importance as data points to this: 54% of millennials said they stopped doing business because of poor customer service. Furthermore, 50% of Gen Xers and 52% of baby boomers felt the same way. – Conversion[10].

    The result of all the advantages of online customer onboarding is reflected in monetary terms. Successful customer on-boarding automatically follows financial success. With each retained customer and every referral made, the revenue of the service provider increases. American Express data[11] points to ‘One happy customer can equal as many as nine referrals for your business.’

Conclusion:

Engage your customer in novel ways and ensure that the support services do not disappoint the customer. Online onboarding is the new way to keep customers hooked to your product and services.




References
[1] https://www.garyefox.com/ultimate-list-customer-experience-statistics-2017/
[2] http://www.conversocial.com/blog/the-7-most-important-customer-service-stats-for-2017
[3] https://pr.liveperson.com/index.php?s=43&item=371
[4] https://www.ameyo.com/blog/customer-experience-statistics
[5] http://www.bain.com/Images/BB_Prescription_cutting_costs.pdf
[6] https://www.liveperson.com/connected-customer/posts/ideal-online-experience-what-it-takes-consumers-click-not-abandon
[7] http://www.mckinsey.com/industries/retail/our-insights/the-three-cs-of-customer-satisfaction-consistency-consistency-consistency
[8] http://www.kampyle.com/optimizing-omni-channel-experiences-customer-feedback/
[9] https://missouribusiness.net/article/reasons-to-go-paperless/
[10] https://www.emarketer.com/Article/Customer-Service-Channels-That-Frustrate-Consumers/1013637#sthash.eqmbhVQA.dpuf
[11] http://about.americanexpress.com/news/pr/2011/csbar.aspx

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Content Specialist at WizIQ. 'Live to write and write to live' is her motto. Passionate about life and living it up!

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