Customer Onboarding: Top 5 Reasons You Need It

Customer Onboarding

When a new customer signs up for your product or service, it’s important to give them a great onboarding experience.

The customer onboarding process is one of the most important parts of the journey a person takes with your business.

This is an essential step, and it requires planning and resources.

Do it right and you’ll have a customer who stays with you for a lifetime.

Here are the reasons why it’s so important. 


1.  Customers Can Get the Most out of Your Product

The main purpose of customer onboarding is to make sure buyers fully understand how to use your products and get the most value out of them.

Your marketing makes promises about what your products can do.

With the right onboarding, your purchasers will get the desired results.

This is a benefit not only for your customers but for you as well because it increases customer satisfaction.

You’ll have a more engaged audience and they’ll tell others about the great value you offer.

This is social proof and it’s a powerful form of advertising.


2.  Onboarding Increases Customer Loyalty

When you buy a product and find it difficult to use or do not get the promised results, you’re not likely to buy again.

In fact, you’re more likely to give up on the business entirely and tell others about your negative experience.

On the other hand, a good experience increases loyalty. 

If the product lives up to its promise and the customer understands the unique value you offer, your audience will come to you for whatever products and support they need in the future.

Remember that it’s much more cost-effective to sell to existing customers than gain new ones. 

It costs a business six to seven times more to acquire a new customer than it does to sell to an existing one.

Plus, the probability of selling to an existing customer is 60-70 percent, while the probability of selling to a new prospect is only five to 20 percent.

Therefore, you should always focus on keeping your current customers happy and engaged—it’s simply more cost-effective in the long run.


3.  Decrease Churn Rate

Improving customer retention will decrease your churn rate.

Churn is the percentage of customers that stop using a company’s product or service in a given period.

Churn rate is important for planning growth strategies or seeking new funding because it is a measure of customer satisfaction and can be used to predict future revenue.

A high churn rate indicates that customers are not happy with the product or service and are likely to switch to a competitor.

This can be a problem for companies that are trying to grow their customer base, because they need to constantly acquire new customers to offset the ones that are leaving.

A high churn rate can also make it difficult to raise money from investors, because it shows that the company is not able to keep its customers happy.

Improving customer retention is key to decreasing your churn rate.

By focusing on creating a great customer onboarding experience, you can keep your customers coming back.

Keep your customers happy and they’ll stick around – it’s that simple!


4.  Make a Great First Impression

The first purchase a person makes from your company is very important.

It creates the first impression they will have of your business.

If the experience is positive and delivers results, they’ll know your value early on.

A smooth first experience can also help to mitigate if there are issues or products that they’re not happy with later on.

If the first experience is negative, a new customer may never give your company another chance.

By making the first purchase a positive experience, you’ll increase the chances of turning that customer into a lifelong fan of your business.


5.  Feedback from Your Target Market

The process of customer onboarding gives you direct communication with customers where you can discuss their needs and satisfaction level.

This is valuable feedback that you can use to further refine your onboarding and overall marketing strategy. 


The Steps to Creating a Customer Onboarding Strategy

How do you go about creating an effective customer onboarding strategy?

It starts with an objective.

You need to set clear and specific goals so that you know what the process will require.

Your goal might be to get the customer using the product at least once within a week after purchase.

This gets them comfortable with the product and they can understand your value early on.

Other ideas for goals might be to create a regular pattern of usage or to integrate the product with their everyday life.

You then need to map out the steps starting with the customer purchase and identify what you need for each. 

In conclusion, customer onboarding is an essential process for any business that wants to retain its customers.

By providing a great onboarding experience, businesses can increase customer satisfaction and loyalty, while also reducing churn.

Onboarding can be time-consuming and expensive, but the long-term benefits far outweigh the costs.

So if you’re not onboarding your customers yet, now is the time to start.

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Written by 

Co-Founder & CEO of Link Management Group. An Investor & Coach to Small Business Owners, for the past 30 years I have helped startup and early-stage businesses to enter new markets and achieve sustainable growth of both revenue and profits. I have experience across a diverse range of sectors including central government, information services, software, health insurance, pet products, couture fashion, entertainment and aviation.  How can I help your organisation accelerate growth and achieve its full potential? 

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