Client retention is a key aspect of the growth strategy for solution providers. Not only is it far more effective to retain clients than acquire new ones, but loyal clients become your biggest advocates. They’re more likely to leave positive reviews that boost your image, as well as refer you to others through word of mouth.
All that being said, you can’t talk about client retention without talking about onboarding. There’s an intrinsic link between onboarding and retention statistics — a connection that we’ll explore in more detail here.
Think of client onboarding as the foundation of a new home you’re building with a client. A structured onboarding process is the framework that ultimately shapes how stable and long-lasting the end result will be. A stronger foundation lends itself to fewer cracks and long-term durability.
The retention and onboarding statistics speak for themselves.
A seamless client onboarding experience provides clients with the support system they need. That's why when deciding to subscribe to a service or purchase a product, 63% of customers say they take the onboarding period into consideration, according to Wyzowl. Additionally, a poor onboarding experience ranks as the third most important factor leading to customer churn, following wrong product fit and lack of engagement, according to a Precursive report.
Client onboarding programs that improve retention have a significant impact on the organization's bottom line. Increasing customer retention by just 5% can boost profits by 25% to 95%, according to a study by Bain & Company. This is because loyal customers tend to buy more, refer more, and cost less to serve. In fact, repeat customers spend 67% more than new customers and they are 50% more likely to try new products or services from the same brand. On top of that, loyal customers are more likely to provide positive feedback and testimonials, which can help attract new customers and boost brand reputation.
So, how do you make sure you offer an effective onboarding program? It all starts with the sales-to-implementation handoff. Through detailed documentation and streamlined collaboration, onboarding teams can capture all the key information they need to ensure the client onboarding process aligns with their expectations and needs. This alignment helps clients get the most value out of your solution and build trust with you.
Once the client onboarding process begins, transparency is critical. With access to an onboarding project timeline and relevant tasks that need to be completed, clients can have clear, realistic expectations for the project and are less likely to be disappointed. This transparency also creates a dialogue where clients can check in with questions or share concerns, which can make them feel more valued and supported and makes for a good onboarding process.
Wondering just how much of an impact client onboarding can have on retention rates? Statistics show that an in-depth onboarding program can improve customer retention by 25%.
While a strong onboarding process sets the stage for high client retention rates, retaining clients is also a matter of continuing to deliver on promises made in the formal onboarding program.
Consider this: If you use personalized onboarding, there is an 80% greater chance that users who complete onboarding will be retained. But what if that personalized support falls off post-onboarding? If you’ve made that pledge to offer timely, responsive support in the onboarding process, following through is key to maintaining client satisfaction and loyalty. Build this level of customer support and care into your company culture.
One of the ways to deliver that support is through regular check-ins. While proactively reaching out to clients demonstrates that you value their feedback, it also allows you to make sure your solutions are still meeting their needs. As needs evolve, you can use this as a way to upsell or cross-sell services that boost your revenue and increase the lifetime value of your clients. This is particularly important for remote onboarding, where communication challenges are more prevalent.
What if you had a single platform that could make onboarding faster, consistent, and more engaging for your clients? Enter Setuply, an all-in-one client onboarding solution.
Setuply supports a well-defined onboarding experience that is tailored to individual client needs and preferences. Replacing manual tasks and paperwork with automation reduces frustrations for clients and onboarding teams, while automated communication keeps clients well-informed and engaged through the onboarding process.
Think of our platform as what helps you get off on the right foot with clients and sets the foundation for making sure all of your clients’ needs are met in the short- and long-term.
Your journey toward better client onboarding awaits. Request a Setuply demo!