Reducing Customer Churn With Better Customer Onboarding
Attracting new customers to your business is only half the battle; figuring out how to get those clients to stay is even more important. Retaining an existing customer is far more cost-effective than attracting a new one, so reducing customer churn is critical as much as possible.
Unfortunately, customer churn can happen very early in the onboarding process. If your customers have a frustrating or unpleasant onboarding experience, they may decide to leave before they can even experience the full benefits of your products and services. As such, reducing customer churn is a critical factor in your company’s ongoing success.
What is Customer Churn?
Simply put, customer churn is the rate at which customers leave your business. It’s usually discussed in terms of customer churn rate, which is the number of customers who leave your business divided by the total number of customers you have. You can measure churn rate over any period of time; most businesses look at monthly, quarterly, and/or yearly churn rates.
Customer churn happens in every industry; there’s no way to stop it entirely. However, there are many things you can do to mitigate customer churn and increase the number of clients who choose to stay with your business long-term.
Why is it so important to address customer churn? For one thing, it’s expensive. Most studies estimate that the cost of acquiring a new customer is at least five times more expensive than the cost of retaining an existing customer. And that figure doesn’t factor in the revenue loss that occurs when a customer leaves.
For example, suppose your business earns an average monthly recurring revenue (MRR) of $500 per customer, and your monthly churn rate is 10 percent. In that case, that means customer churn could cost your business $50,000 per month! And a 10-percent churn rate isn’t exceptionally high; some industries see customer churn rates as high as 25 percent!
How Can a Positive Customer Onboarding Experience Prevent Customer Churn In Your Industry?
To grow your business and protect revenue, it’s imperative to reduce customer churn as much as possible. One of the best places to start addressing churn is in the onboarding process!
A poor onboarding experience can negate a customer’s desire to continue working with your business. However, an excellent onboarding experience can significantly increase the chance that a customer stays with your company, even if there are minor hiccups down the road.
The average customer churn rate in SaaS is approximately 5 percent. Customer churn in this industry is often caused by poor customer engagement and/or customer service, especially during onboarding. That’s the only chance you have to make a strong first impression on new clients. You can improve that first impression and reduce the risk of churn by streamlining the process and improving communication during onboarding.
SaaS providers need to minimize the time it takes to implement and train users on their software. The sooner your customers can start to use your software, the faster they can see a return on their investment and the less likely they are to think about moving to one of your competitors.
Client trust is imperative for a FinTech provider. It’s essential to show your clients how much they can trust your company from the very beginning of your working relationship. That means the onboarding process must be transparent and predictable.
Oftentimes, customers don’t have a clear view of the onboarding process. Unless you show them, your customers can’t know what’s going on during the onboarding process. Are your team members working on their tasks? When will they be completed? Is there information or feedback your team needs from the customer to continue moving forward?
Answering those questions clearly and honestly can significantly improve a customer’s onboarding experience and reduce the churn rate for your FinTech company.
As the healthcare industry continues to embrace new technology, HealthTech providers have a chance to give their clients priceless tools and resources. However, implementing new technological solutions can be a complex process, especially if your clients are large organizations with multiple facilities and many stakeholders.
During onboarding, it’s crucial to ensure that your customers can see every step of the process and know what’s coming next. Fast scaling capabilities are also important; automating project management tasks can ensure that onboarding stays on track even if there are significant personnel changes within your organization or your client’s.
Teamwork and transparency define success in the EdTech industry. Your education technology clients want an onboarding “syllabus” they can reference to understand each step of the process.
Additionally, time is crucial for many EdTech customers; there are hard deadlines that they must meet. As such, your company must ensure that your clients have a clear view of onboarding from start to finish as well as a reliable way to track the process and know precisely when they can expect to reach certain milestones.
What Are the Key Features and Benefits of a Customer Churn Solution?
- On-time delivery: A comprehensive customer onboarding platform keeps projects on schedule and makes it easier for everyone to complete their portions of the onboarding process.
- Automated task management: With GUIDEcx, tasks are easier to assign and track, including those that the customer must complete. All stakeholders can see pending tasks and responsible parties, which reduces the risk of bottlenecks and increases on-time delivery from your team members.
- More revenue: Reducing the time it takes to onboard a client lessens the chance they will leave and also allows you to start billing for your services faster. Together, these two factors can significantly increase the amount of revenue your company earns from each customer.
- Transparency: Often, customers feel frustrated when they don’t know what’s happening during onboarding. With our platform, every stakeholder can access a clear, easy-to-understand overview of the process. Team members and customers can see what’s happening and know what to expect next. As task visibility increases, so does the chance of those tasks being completed correctly and on time.
- Communication: Managing customer communication manually is extremely time-consuming and prone to human errors and misinformation. Our onboarding platform automates key notifications so your customers stay informed and your team can focus on their work instead of providing updates, sending reminders, and completing status updates.
- Time-to-value: A faster, smoother onboarding process significantly reduces your customers’ time-to-value and helps them see a return on their investment sooner.
How to Evaluate Customer Churn Solutions
Once you’ve determined that you need a customer churn solution, how can you choose the right one? Several options exist but don’t offer the same tools, services, or experience.
When evaluating a customer churn solution, you must consider the benefits for your company and your clients. An effective customer churn solution should enable your company to improve the experience for your customers. Additionally, it should simplify things for your team members and enable your company to take on more clients.
- Efficiency: Slow, inefficient onboarding is a key factor in customer churn; look for a solution that significantly reduces onboarding time.
- Efficacy: To be effective, a customer churn solution should measurably reduce your company’s churn rate.
- Support: Choosing a solution that offers excellent customer service is crucial so your team can get the answers and resources they need to support your customers effectively.
- Customization: Every industry has unique aspects that affect customer churn, so it’s essential to find a solution designed specifically for your industry.
- Scalability: A good solution must be able to scale quickly and reliably so that you can continually grow your client base without having to expand your team first.
- Price: Finally, you must look for a solution that fits your company’s budget and offers a reliable return on investment.
The Benefits of GUIDEcx’s Customer Onboarding Solutions
GUIDEcx offers effective customer churn solutions that address the problem from the very beginning: onboarding. Our customer onboarding platform significantly increases efficiency and improves the experience for your team and your customers. With GUIDEcx, you can quickly implement an efficient, consistent onboarding process that keeps your customers informed and significantly reduces their time-to-value.
With GUIDEcx, offering your customer better service is simple. Integrated task management tools keep all stakeholders up-to-date on the process. Everyone can see the status of all tasks, including those that your customers are responsible for, and that level of transparency encourages everyone to complete their tasks on time. Finally, our software automatically sends notifications and status updates, eliminating the need for your team to manually track progress and spend time answering frequent requests for status updates.
How GUIDEcx Onboarding Features Reduce Churn
CSAT (Customer Satisfaction Tool)
Use automated surveys to gather valuable insight into each customer’s onboarding experience. Customer service managers can use this information to identify and address onboarding issues encouraging customers to look elsewhere.
Automated White-Label Emails
Gain and keep your customers’ trust with automatic update emails sent from your domain.
Workflow and Task Management
Streamline the onboarding process and reduce time-to-value with automated task management tools and templates that reduce errors and eliminate bottlenecks.
Easy Access From Any Device
Make it easy for your customers to access their project or onboarding guide via a no-login email link, web portal, or mobile app.
Real-Time End Date Updates
GUIDEcx automatically updates the forecasted completion date based on completed or delayed tasks, so you can keep customers apprised of progress and timelines.
The Compass Experience
Give your clients one-click access to a personalized dashboard that includes critical information. Customers can see their responsibilities and feel involved without getting lost in overwhelming project management details.
GUIDEcx Empowers Our Customers To Realize:
Reduction in Onboarding Time
Increase in Project Manager Capacity
Fewer Onboarding Meetings
On-time Delivery Rate when 5+ Users are Invited
Don’t Take Our Word For It. Hear From Our Customers
Talk With A Guide Today!
Discover how GUIDEcx can help you improve efficiency by reducing your customer onboarding timeline and increasing the capacity of your project managers. Our industry-leading customer onboarding solution is supported by our unparalleled professional resources and unwavering commitment to excellence.