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WittySparks / Business / Customer Experience / Customer Onboarding And Its Impact On Satisfaction

Customer Onboarding And Its Impact On Satisfaction

Updated: May 21, 2023 by Apoorv Bhatnagar • 3 min read

Customer Satisfaction

An average customer would generally go through four distinct stages before they make a purchase. While most companies only focused on the steps that lead to the purchase, more and more company owners are starting to realize that after-purchase service is also an essential part of the customer’s journey.

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One of the most effective ways in which you can satisfy your new customers is by Customer Onboarding. Recent research has shown that by providing just a short tutorial to your customers, you can reduce churn by almost 6%.

On this page

  • What is customer Onboarding?
  • What is expected from Onboarding?
  • Benefits of successful customer Onboardings
  • Reducing the load of customer service
  • Impact of Customer Onboarding on Customer Satisfaction
  • Who is responsible for customer Onboarding

What is customer Onboarding?

Customer Onboarding is an umbrella term that refers to the entire process users go through starting from when they are customers for your product or service and goes way beyond it. It includes various interactions and engagements with your brand. It is used mainly to enhance your users’ experience and, in turn, influence the relationship that the customer has with the brand and the products.

What is expected from Onboarding?

A few factors should determine your onboarding strategy. Firstly, your industry plays a significant role in the kind of training you give your customers. For anything technologically related, you can merely attach a how-to guide to your product. Some companies have also started including CDs that include detailed videos showing the use of the products.

However, in this case, the guide is not customized to the customers’ specific needs. Your business should be able to find a way to personalize the tutorials for the customers’ specific needs. Some industries can benefit from online tutorials; however, this is not as scalable as other industries and markets. This causes an issue when it comes to the overall customer experience.

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Benefits of successful customer Onboardings

Customer service is at the heart of customer Onboarding. However, a successful process of customer Onboarding goes a long way beyond pleasing your customers.

Here are some key benefits of having a strategic Onboarding process.

Revenue: When a customer is onboarded correctly, your customers will stick to you as long as they are given the same quality product. They will keep doing business with you, and that will result in higher revenues for your company. With a better lead-generating and Onboarding process, you can ensure that more leads are closed. You can decrease your overall customer acquisition costs by providing better content and smart engagement.

Recurring business: Once you have acquired a customer, there can be a significant loss to loss recurring revenue. A customer who goes through stable Onboarding processes can have a higher lifetime value as it saves you many customer acquisition costs. These customers can be valuable resources for your company in the long run.

Word of mouth: The more successful your customers are with your company’s products and services, the more they are likely to talk about it to others in their social circle. It is found that almost 92% of purchases are made based on good peer reviews. This shows that word of mouth and referrals can bring a lot of revenue to your business.

Reducing the load of customer service

Apart from making your customers happy, Onboarding also reduces the overhead costs related to customer service. The better you educate your customers, the less likely they will come across any issues with the product or service.

Impact of Customer Onboarding on Customer Satisfaction

There are a few different ways in which you can measure the effect of customer Onboarding on CSAT. A known effective and reliable way of doing this is by using the Net Protector Score (NPS). This is a 10-point scale that measures customer satisfaction in terms of Onboarding.

It was found that with even a single-digit improvement in the NPS reading, customer revenue increases by almost three percent. In simple terms, onboarding helps improve customer satisfaction which can ultimately result in higher revenue for the company.

Conversely, it is also true that poor Onboarding can result in lower customer satisfaction rates that can ultimately cause increased churn and lower the company’s overall revenue. It is increasingly important for a business to ensure that their customers are correctly onboarded, so they need to create an onboarding structure that gives your customer the power and the right tools that they need to deliver effective lessons whenever required.

Who is responsible for customer Onboarding

The marketing team is responsible for creating content and publishing it across the right platforms. Customer service is required to give their insights about the problems and questions that are common among customers.

Technical support provides the required documents, knowledge base, and training needed to make the customers’ self-service journey easier.

The sales, account management, and analysis teams of the company also play essential roles in the smooth customer Onboarding process.

With customer Onboarding, you will not only be able to build a company that has happy customers, but you can rest assured that your customers will stand by you and support your company, thus increasing the revenue of the company and helping it grow.

Image source: Freepik Premium

Related Topics

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  • How to track customer engagement metrics?
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Topic: Customer Experience

Profile picture for Apoorv Bhatnagar Article by

Apoorv Bhatnagar

Digital Marketer at Freshworks Inc.
WittySparks Network Contributors

Apoorv Bhatnagar is a Digital marketer at Freshworks Inc. He generally writes about software that improves your marketing, sales, or hiring process.

View all posts by Apoorv Bhatnagar

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