There is no denying it, onboarding is a vital phase in the customer journey and experience. One wrong move and it is highly likely your prospect will jump ship to a more digitally savvy competitor. As such, it’s becoming more and more important that companies ensure their onboarding experience can keep pace with rising customer expectations.
Speed and security are the name of the game. Research shows that customer abandonment rates are rising with 1 in 5 abandonments suggested to be caused by a lengthy and complicated onboarding process. But what is causing these delays? Most regulated companies MUST verify their customer and carry out strict due diligence during the onboarding process due to money laundering regulations.
Carrying out AML and KYC checks is an obligatory stage of a regulated entity’s onboarding experience. Without the correct systems in place, this can cause a heavy admin burden that will likely result in high application drop offs.
Put yourself in your customers’ shoes
Imagine spending a considerable amount of time filling out a detailed application only to find out at the very end you cannot continue without physically sending off further identity documentation by post or visiting in person. This barrier of service is a common onboarding experience pitfall, creating unnecessary frustration likely leading to a high application drop off rate.
Adopting a digital onboarding experience can not only help speed up the client onboarding process and ensure robust compliance – it can also take your CX to new heights and ensure your ideal customers are not poached by competitors at the last hurdle.
CX booting innovation at every touchpoint
According to a recent Gartner report examining the impact of COVID-19 on the electronic identity check market, the pandemic accelerated the need for digital as ‘online ID proofing’ became ‘a core requirement for businesses to continue operating.’
Whilst this requirement is no longer necessary as face-to-face meetings are legally allowed again, the precedent and expectations still remain. There is no looking back as increasingly customers now expect a fast, digital-first approach.
Client expectations of service matter for business performance. It is therefore vital that businesses realise not only the operational benefits of digitally enhancing the onboarding experience but also how this plays into customer satisfaction, CX and ultimately the bottom line.
You need to demonstrate at every touchpoint that you are investing in CX-boosting innovation whilst avoiding costly up-front capital expenditure in developing your own systems.
The case for Digital ID Verification
Client due diligence is time consuming if carried out manually and valuable resources are wasted when cobbling together the necessary documentation to validate an individual’s identity. Even worse – relying on the naked eye to verify identity documentation is a risky strategy that is almost guaranteed to expose businesses to criminal exploitation.
Electronic verification tools can help regulated businesses to quickly yet securely gain an appropriate level of client identity assurance. With standardized measures to follow and digital compliance assistance, the client onboarding experience will inevitably become faster, more organised and efficient.
To sum up, there’s no hiding from the fact that slow and outdated customer onboarding is bad for business. In order to remain competitive, businesses need to invest in quality compliance that is designed to protect against financial fraud without hindering the CX journey.