Frictionless customer onboarding is the ability for enterprises to bring on a client in a minimal amount of time, with the least possible effort. The longer the onboarding time is, or the more complicated it is, the higher the cost of onboarding per customer and the greater the customer attrition.
"The theory in the marketplace goes that if you can say yes to a customer in three minutes, they'll always respond with a yes; if you wait five minutes, you lose a certain percentage; if you wait seven minutes, you lose a larger percentage. If you make them wait 10 minutes, you'll never get them onboarded," noted Rob MacColl, Chief Commercial Officer at Markaaz.
Today's small business client is used to downloading apps on their phone and being able to start using the app immediately. This puts companies that need proper onboarding procedures at a disadvantage, for example, lending companies, insurance, banking, and more, because their potential customers are used to immediacy.
"The whole point of the Fintech revolution is speed and agility. You need to bring customers on in a way that is not too burdensome. If a small business customer has too many clicks and must provide too much information when being onboarded, they're just not going to buy the product," explained MacColl.
The quicker and more agile your business onboarding is, the better your retention rates and product uptake is. The frictionless customer onboarding premise is that multiple technical onboarding processes are done in the background as the potential customer fills in their information. So, while the customer experience is seamless and frictionless, the back end is incredibly complex.
"In the current world, a business may have to go back three or four times with more documents to get underwritten for a bank account. In this new world, the process would be very tight and automated, and the business can get access to the services they need without much time and effort," stated MacColl.
Frictionless customer onboarding is a no-brainer for enterprises; they can scale up more quickly, onboard more clients in a shorter timeframe, provide a better customer experience, less risk, lower the cost of onboarding through fewer resources, and ultimately bring in more revenue. However, getting to the point of frictionless customer onboarding is still not easy, and only a few companies are truly addressing the problem in a simple way.
"If you can create a frictionless, well-communicated way of onboarding your clients, it means less cost to the enterprise. Frictionless customer onboarding can also ease regulatory burdens by automating or reducing touchpoints of documentation as well as ensuring client access is minimized. So, you need to develop a tool that enterprises can show to their regulators that indicates that they're doing the right thing from an oversight point of view," explained MacColl.
Frictionless customer onboarding applications must be able to create a positive experience for the consumer that signing up for a product or service is simple. In the background, the processes that make it seem simple might be complicated. The internal team might have done five or six document checks and then cross-checked them. If something came up incorrectly, they went back and asked for more information. However, what you want to see for the consumer is an easy experience.
"Credit cards are a great example of the seamlessness needed in onboarding. With your credit cards, you go into a store, swipe, you take home your goods. That's all you know. In the background, transactions are going back and forth. There are authorizations clearing the settlement. A lot is going on in the background to make that happen. But for the consumer, it's just great and simple," stated MacColl. "Markaaz is a great example of what's out there in the frictionless customer onboarding space. It's a great solution because we give you better information from the start of the interaction between the enterprise and the small business. So, that is why the Markaaz Dashboard is so cool."
Simplification and ease of onboarding are what the enterprise Fintech sector needs to take its customer acquisitions to the next level quickly.
The Markaaz Dashboard is where small businesses can easily store all the correct business information they need to be onboarded and directly access the enterprise services they need through applications embedded in the Dashboard. This is designed to provide a seamless and frictionless onboarding experience for Markaaz's partners and its small business Members. It also helps build a strong, ongoing relationship as business owners’ needs evolve and they require new services.
We have also developed low-code, automated APIs to help you verify your customer lists and help you onboard faster.
Talk to our team to learn more about our customized frictionless customer onboarding solutions and become a partner.
To keep our enterprise partners in the loop, we have developed a new enterprise-focused newsletter, Markaaz Moments. If you are interested in receiving our monthly newsletter featuring exclusive Markaaz updates, news, views, and global enterprise interviews, sign up here.
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