Reinventing business onboarding: Tracking metrics to unlock visibility and performance

We see how companies spend thousands of pounds every day to attract new prospects and customers, only for a high-percentage of them to drop out of the process during onboarding. 
Here is how.

Traditionally, companies do not have clear visibility over how effectively they are running their KYB (Know Your Business) onboarding processes. Onboarding was viewed through a simplistic lens - often focusing solely on getting customers signed up, with compliance checks in place, and systems set up. The process was seen to hold no wider value, which companies are now realising is to their cost.

The onboarding process for new clients and customers is a critical first step that can set the tone for all future interactions. Efficient business onboarding, when done right, provides a competitive advantage; the quicker you onboard a customer the sooner they generate revenue for your business.

Today, we're at a turning point where tracking specific metrics during the onboarding phase can reveal invaluable insights and significantly improve the overall client experience.

‍

Why metrics have been overlooked

The oversight of metrics in the business onboarding process can be attributed to several key factors. First, onboarding wasn't digital. Many companies relied on manual processes that were difficult to track and analyse. This lack of digital infrastructure made it difficult to gather, store, and review data systematically, resulting in little visibility over the effectiveness of onboarding procedures.

Additionally, implementing metrics requires specific frameworks that can capture, analyse, and interpret data. Without these frameworks, collecting meaningful feedback and actionable data is challenging. Many businesses have lacked the commitment to develop these systems due to perceived complexity and resource demands.

Lastly, as alluded to earlier, onboarding has not been seen as a priority area within the broader business strategy. This underestimation has led to insufficient attention being paid to refining the onboarding process. Without recognizing onboarding as a critical operation there has been little incentive to measure its performance rigorously.

‍

The transformative power of metrics

Introducing metrics into the business onboarding process marks a significant shift from a purely operational focus to a performance-driven strategy. This isn't just about making sure all the boxes are ticked; it's about ensuring that each step in the onboarding journey adds value, protects all parties and enhances the customer experience.

By measuring specific aspects of onboarding, companies can streamline processes, reduce customer churn, and accelerate time to revenue , ultimately driving greater satisfaction and loyalty. Tracking the right metrics can provide a detailed picture of how well the onboarding process is functioning and where it can be optimised. Here are some critical metrics that businesses should consider:‍

Time to value/revenue
What is it? How long it takes from the customer’s initial engagement until they start to receive value from it & that your company receives revenue from them.
Why track it? Reducing this time can significantly enhance their experience, satisfaction and retention while also improving cash flow.

Completion Rate
What is it? Tracking the percentage of new clients who complete the onboarding process successfully.
Why track it? Lower rates indicate issues in the process, such as overly complicated procedures or poor support.

Drop-off rate
What is it? On the flip side of completion rate, drop off rate measures the users who don’t finish the process. But more importantly, it monitors where they drop off. Drop offs can occur if a section is confusing, too difficult or irrelevant.
Why track it? High areas of drop off highlight specific areas that need to be improved. By monitoring these stages, targeted improvements can quickly be made.

Customer satisfaction score
What is it? Scores collected via feedback that provide insight into the user’s experiences and perceptions.
Why track it? Helps to identify strong points and pain points and informs necessary adjustments. It also keeps the customer central rather than basing it wholly on internal performance metrics.

Compliance adherence rate
What is it? When operating in a highly regulated environment, the rate of adherence to the necessary compliance checks during onboarding is critical.
Why track it? Ensuring compliance not only mitigates legal risks but builds trust with new customers.

Compliance review efficiency
What is it? How quickly the compliance team can complete their review of an onboarding company.
Why track it? Much like time to revenue, a shorter review time indicates a smoother process. Additionally, the compliance review is often a source of frustration due to bottlenecks and lack of visibility so understanding the efficiency of this process helps to alleviate these concerns.

There are, of course, a host of metrics that can be monitored to improve onboarding and the priorities of the company and the setup of their onboarding processes will dictate the specific set of metrics used.

Implementing a metrics driven onboarding process

Adopting this metric-focused approach to business onboarding involves several strategic steps:

Establish clear benchmarks: It's essential to define what success looks like for each stage of the onboarding process. These benchmarks will guide the measurement and evaluation of onboarding effectiveness.

Use the right tools: Investing in the right technology is crucial for accurately tracking onboarding metrics. Automated tools can help capture data efficiently and provide actionable insights through analytics.

Regularly review and iterate: The key to a successful metrics-driven approach is continuous improvement. Regularly reviewing the collected data to understand the effectiveness of the onboarding process and making iterative changes can lead to substantial improvements in customer experience and business outcomes.

Reinventing business onboarding

In a world where first impressions are crucial, and competition is fierce, the ability to effectively onboard new clients is more important than ever. By embracing a metrics-driven approach, businesses can not only gain deeper insights into their onboarding processes but also enhance client satisfaction and loyalty, paving the way for sustained success. This isn't just about keeping pace; it's about setting the pace, redefining how businesses welcome and integrate new clients into their ecosystem.

Detected is reinventing KYB business onboarding by providing a metrics-driven approach as a core element throughout the whole platform. When using Detected’s modular onboarding flows, user behavioural analysis is provided to inform clients which stages are causing friction and how to make improvements. Detected’s intelligence engine also takes a metric-driven approach with high company match rates alongside global data coverage. The case management system allows for an efficient compliance review with all the information acquired from onboarding and data sources displayed in a single company profile which can be linked to existing systems and CRMs.

For more information about how, with Detected, you can improve visibility over your onboarding process and boost its performance get in touch here.