A company guides its customers by making its product important in their life. This process of nurturing the new and existing customers is called customer onboarding. The company makes customers feel attached and dependent on its products through customer onboarding. Customers at the beginning can feel uncomfortable switching products. This discomfort compels the customers to try new brands. This may lead to termination of the subscription or stop starting a new one.
The churn rate is a measurement that concludes the annual rate of cancellation or non-renewal of a subscription. The churn rate acts as cancer for any start-up business. It increases the cost per acquisition and reduces the lifetime value of a customer. A significant share of revenue is earned from loyal and existing customers. Nurturing the current customers is cheaper and easier than getting new customers.
How Customer Onboarding helps Growth in Business?
The following are why customer onboarding is essential for making your business successful.
- Marketing with Word-Of-Mouth:This means of marketing is an achievement for any business. It is an earned media for the brand. This marketing is done by the existing customers who are satisfied with the products and services. These customers praise the brand to their peer groups and invite more people. Therefore if your customer onboarding process is successful, it can spread widely. A suitable client onboarding procedure also increases authority. This further can encourage customers to support your business longer.
- Shorten the Time to Value (TTV):Time to Value or TTV is a metric. It measures the time required to explain the product’s value to a new customer. If a company fails in TTV, they lose a customer at a faster rate. The customer needs to realize what they can get from your product. The approach should never be what the company wants to have the customer from their products.
- Lower the In Churn and make Revenue Recurring:Recurring revenue is significant for a start-up business. The recurring revenue makes the company more robust and stable. It finances the business by itself. Again, a higher churn rate will weaken your customer base and reduce revenue earning. Therefore taking care of the customer and effective marketing is crucial. Increasing the lifetime value of every customer is inevitable for any business.
Making the Customer Onboarding Smooth
- Help the customer to understand the outcome they can get. You can set a milestone for them regarding the products as well.
- Customizing the process of customer onboarding is a good idea to smoothen it. This would help the customers have a better experience too.
- The company must allow the customers to access and import information. They can integrate the data with different tools and invite team members.
- There should be a section based on the knowledge of your product. The business should update this section regularly and keep it glitch-free.
One of the most crucial phases of the client life cycle is the onboarding process. It establishes the tone of the relationship with the company. It refers to the procedure the company wants the new users to follow for using your product. If the customer onboarding process is done correctly, it shows your product’s value. This process also empowers your consumers and boosts retention.