You probably already know that effective onboarding is key to customer retention and a successful business. More and more companies are putting in the effort to develop strategic onboarding plans that will satisfy your customers.
No matter where you are with your customer onboarding strategy, we want to outline a few factors for you to consider in order to get the best possible results.
What is onboarding?
First things first, we should probably explain for those who don’t know what onboarding is!
The term pretty much covers the interaction between your business and a newly acquired customer. A realisation that many brands are coming to is that the onboarding strategy does not end when the sale is confirmed and the customer/client is finalised.
Instead, effective onboarding needs to set the tone for the whole of your future relationship with the customer. You need to be ensuring that your brand is delivering an effective customer experience. In turn, this will determine whether they will churn or return to you in the future.
Why does onboarding matter?
Onboarding matters primarily because customers have higher and higher expectations when it comes to their contact and relationship with a company. It’s up to you to make sure the whole process from the first contact to the final step is as optimized and rewarding for the customer as possible.
Bearing in mind that the goal is to encourage repeat purchases, reduce churn and increase customer lifetime value, a good onboarding strategy will confirm the buyer’s good choice in selecting your brand or service.
Therefore, if you are nurturing your customers effectively, they will be pleased with your brand. This will increase the likelihood of them sharing their experience with others and the chances of getting you more customers.
If you are still on the fence about the importance of onboarding, consider this for a moment:
“Depending on which industry you’re in, acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one.”
Harvard Business Review
How to perfect your customer onboarding?
So from the facts above we know that the key here is ensuring a great customer experience. As well as this, the strategy should plan ahead of simply the first interaction, but continue nurturing throughout the customer journey.
1. Keep them up-to-date.
Increasing customer retention rates means keeping them engaged and interested in your product or service.
This means your onboarding strategy should include outreach that keeps your customers informed about their progress and usage of your brand. Consider possible issues and painpoints before they arise and bring their attention to achievements, offers or new products.
In short: Ensure they are happy with your service. Happy customers = repeat business.
This is perhaps the most important point here. Taking the time to listen, engage and communicate with your customers gives huge benefits. It means you can personalize the onboarding experience for your customer, in order to make them feel appreciated.
- Be proactive by answering questions they might have.
- Outline the product/service to which they have committed – and the value it brings them.
- Invite them to reach out, show them you appreciate their custom.
3. Engage through video.
Video is a fantastic tool for onboarding as it delivers important information in an engaging, educational way. As mentioned, you want to provide your new customers with all the answers and key info from the moment they make that purchase decision.
Therefore, reaching out via a means that will draw attention while outlining important information is crucial to a successful strategy. By predicting questions, issues or demands your customer may have through your video output, you can also minimize the costs of lengthy customer calls and back-and-forth emailing.
The great thing about developing a customer onboarding strategy in this way is that it benefits both your business and the customer. By nurturing and building a relationship you are increasing retention rates and building revenue. Meanwhile, the customer is feeling valued and is much more in-the-know about their progress in the customer journey.
If you already have an onboarding strategy in place – think how it could be improved. Ask yourself if you truly understand what it is your customers want, and if you are evolving with their needs as they change.