Customers are the most important element in every business, regardless of which industry you belong to or what your niche is. Even the most specialized companies need customers to stay in business. The truth is that if there are no customers, there will be no business to run. Due to this dependence, the old saying “Customer is always right” became the staple of most customer-oriented businesses. Luckily, we are slowly shifting from the mindset that customers can do no wrong, as some customers bring more trouble than benefits, such as scammers and fraudsters. But that doesn’t mean that improving customer satisfaction is any less important. According to the research, 72% of customers will share their positive experiences with six or more people. This means that almost ⅔ of all positive experiences give businesses a unique opportunity to attract new customers and generate sales.
Did you know that the onboarding process can ruin the entire experience for the customer? You could attract the customers to your site, they could fall in love with your products, but this is what can make or break the sale. Long and tedious registration or sign-up process can be enough for customers to decide it is just not worth it. This process needs to be compliant with the industry regulations and protect confidential data while at the same time being fast and frictionless.
What exactly is digital onboarding?
Digital onboarding is actually a process that transforms visitors to customers by creating user accounts and giving them access to your products and services. It means creating a user account through subscription or registration in the simplest terms. This process allows businesses to gather more information about their customers so they can offer them better service and accommodate their needs. Information you learn through the digital onboarding process can be used in the marketing and sales department to create targeted advertising campaigns, product research to see which products are under or over-performing, and even fraud prevention.
With a digital transformation of businesses from different sectors, online onboarding has become a norm throughout the industries. It just makes it easier for any company to acquire new customers without causing user friction, especially for e-tailers, e- merchants, and online-only financial institutions.
Why is online security important during digital onboarding?
Digital transformation has changed the ways businesses operate. When interacting with customers online, you can no longer see the suspicious actions and red flags that might indicate fraudulent behavior. Now you need to rely on the onboarding process and security protocols you have in place to determine customers’ intent and recognize fraudulent and malicious actions. There are five fundamental reasons why online security is not an option but a necessity when creating an account:
1. Cybercrime is on the rise
Cybercriminals do not care if you own a large or a small size company; they just care about exploiting it and making a profit. They are constantly trying to find a way to get into the systems or network and exploit the company for money. Having an insecure digital onboarding process is just like leaving doors open and inviting them in to take whatever they need.
2. It helps verify the identity of customers
It is essential to know your customers in order to provide them with the best possible service. Not only does this help prevent fraudsters from accessing your website, but it also helps you offer more suitable products and services to each customer.
3. Prevents account takeover fraud or identity theft
By maximizing the security of your digital onboarding process, you can prevent your users from becoming victims of account takeover fraud or identity theft.
4. Protects users and company’s confidential data
Using proper security protocols during your onboarding process can reduce the chances of fraudulent actors gaining access to confidential data from your company or users and using them for their malicious actions.
5. Reduces the risk of reputational damage for the company
Becoming a victim of a security breach can have other consequences than financial damage. According to Forbes, 73% of customers say a positive experience is essential to brand loyalty. Customers are not willing to do business with companies they don’t feel safe with, resulting in loss of consumer trust and current and future customers.