4 Benefits of Customer Onboarding That Companies Need to Know
One element of a successful business is continuous profit from period to period. However, to achieve continuous profit, companies need to acquire and manage customers, both existing and new, effectively. One fairly effective way to do this is through customer onboarding. This is because customer onboarding is a crucial stage in determining whether customers engage in business transactions or not. Therefore, companies need to optimize their customer onboarding process so that transactions can occur. By implementing customer onboarding, companies can increase retention and sales growth.
So, what are the forms and benefits of customer onboarding? Before delving into that, you need to understand in detail what customer onboarding entails.
What is Customer Onboarding?
Referring to HubSpot, customer onboarding, or commonly known as customer orientation, is the activity of introducing customers to various products owned by the company. Onboarding is the initial process that customers must go through before becoming loyal customers. If one were to compare customer journey with customer onboarding, customer orientation is actually part of the customer journey. This is because onboarding is the initial interaction between customers and the company. Therefore, onboarding is important and serves as the primary foundation for the company's relationship with customers before progressing to higher levels. If companies fail to do this effectively, the potential for customers to switch to competitors is highly likely. The utilization of customer onboarding is not only to provide engagement between the company and customers but also to enhance brand image, brand authority, and brand loyalty.
Forms of Customer Onboarding
There are various forms for companies to conduct customer onboarding, namely:
- Welcome emails
- Registration form filling
- Product usage tutorials
- Correspondence via telephone
It is advisable for companies to use one or even all of these methods to convince customers that the company's products are truly of high quality.
Benefits of Customer Onboarding
As mentioned above, customer onboarding is part of the customer journey. Therefore, implementing customer onboarding is imperative for companies. Moreover, customer orientation brings many benefits, including:
1. Enhancing Customer Loyalty
If customers are not familiar with the products offered by the company, it is highly possible for them to leave. Therefore, companies need to conduct customer onboarding to gain customer loyalty. If many customers are loyal to your brand and products, it will impact customer retention. One thing companies need to know is that retaining existing customers is more effective than acquiring new potential customers. When companies can retain them, the opportunity to acquire potential customers becomes easier. This is because they will recommend the brand to close friends, and currently, this method can be considered effective.
2. Increasing Revenue
The second benefit that companies can obtain is increasing revenue. When able to retain existing customers, what happens is an increase in sales growth. Existing customers are more likely to engage in business transactions because the crucial point is that the company does not need to incur significant promotion costs. Existing customers also understand the brand value of the company, which is clearly advantageous for the company.
3. Word of Mouth Marketing
One form of marketing strategy is word of mouth, also known as word of mouth marketing. This strategy is also part of customer onboarding. The presence of word of mouth will increase engagement between the company and customers. If customers already like the company's brand, they will indirectly provide reviews or testimonials, which can lead to increased revenue opportunities.
4. Reduced Role of Customer Service
The fourth benefit that companies can obtain is the reduced role of customer service. This is because customers are already familiar with the brand and products of the company, so they do not need much time to transact. Additionally, companies will find it easier to obtain feedback from customers. Feedback is beneficial for company evaluation, enabling them to identify areas for improvement and formulate business development strategies for the next period.
By conducting customer onboarding, companies can more easily generate better profits. To ensure effective customer data management, Brick offers the best solution for your business. Brick's API Verification will assist you in automatically verifying data, making your business operations more efficient.