10 Key Elements for an Effective Onboarding Strategy
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When it comes to engaging, growing and retaining customers, Harland Clarke Marketing Services knows an effective onboarding strategy is crucial to gain an edge over the competition and win both the minds and hearts of new customers.
From the first few minutes of an account opening through the entire first year, financial institutions are faced with a make-it-or-break-it window of opportunity. Research shows that new customers are the most likely to purchase additional products and services. Paradoxically, they are also the most likely to leave.
Attrition during the first year ranges from approximately
35% to 45% — that's two times higher than the rate of
attrition among established account holders.
35% to 45% — that's two times higher than the rate of
attrition among established account holders.
Source: American Banker, June 2006
| For Every 20,000 New Account Holders | ||
| 6,000 | Account Holders | LOST |
| $1,500,000 | In Marketing Expenditures | LOST |
| $84,000,000 | In Balances | LOST |
| $2,940,000 | In Interest Income | LOST |
| $1,200,000 | In Fee Income | LOST |
| $4,140,000 | In Total Income | LOST |
Effective onboarding counters this problem by establishing an early and meaningful dialogue with new customers — enhancing and strengthening relationships from the very start to pave the way to a long-lasting, mutually beneficial relationship.
No single aspect of an onboarding program is all-important, but the most successful strategies integrate the following elements:
- A Good Account Holder Is Good to Find
- Relevant Communication, Early and Often
- Right Message, Right Channel, Right Time
- Know Thy Consumer
- Making the Most of Engagement Products and Services
- Build a Frequency of Communications
- Divide and Conquer
- Practice makes Perfect: The Art of Onboarding
- The Proof Is in the Pudding
- Provide a Single Point of Responsibility