Simplifying the customer onboarding process for faster payments

The customer onboarding process is a slow and complex procedure. Even in today’s highly digitalized and connected environment, fast, painless and efficient payment methods are struggling to reach general acceptance. The main reason used to be security. With the advancement in technology, faster payment methods are slowly but surely becoming more popular. 

Every business has taken on the responsibility to speed up the process of collecting customer payments without compromising security. It is another way to stay competitive in a business environment with decreasing margins and substantial competition. Your business lives by the amount of cash being able to come in. It stands to reason that the process needs to be as fast, secure, efficient and painless as possible. Here are some of the ways you can make this happen.

The importance of speed

Today, customers and businesses use the power of the Internet for all interactions with the banks. Certain websites are used to compare features and pricing. That is the very first step as it is painless, convenient and can be done from the comfort of your home. Differences in fees, rates and between the competition is apparent and easily comparable. 

Using these online platforms, there have been many efforts to make the client onboarding process as streamlined as possible. It makes a positive first impression and increases the chances of your customers choosing you over everyone else. 

Payment up front

Customers do not actually mind paying up front for a service or product. This especially holds true for tried and confirmed brands that have a reputation for delivering on their promises. As for the companies, the biggest obstacle is to close the sale.  That is why it stands to reason that once you provision the cost, customers can plan and adjust. 

It is much more likely for them to accept the idea of paying half in advance or maybe even the entire sum. If you can prove that you have upfront financial obligations to meet in order to fulfil their needs, people will be much more understanding.

The onboarding program

A successful onboarding program consists of three basic elements: people, processes, and products. People are where the demand is created. They need to know who they will be interacting and working with. As for your own people, they can be instructed and trained in referencing articles and talking points. 

The process is where you need to establish a commitment. Begin with identifying the customers and gather as much information as possible. Be sure to discover the customers’ preferred payment methods as well as the payment solutions that are on the rise such as tap-and-pay prepaid cards in order to make payments as seamless and stress-free as possible for the customer. This will ensure that the customer will pay for your products or services without hesitation or apprehension.

Finally, the product itself is for the customer to figure out. Maybe it can be utilised in more ways than one. Some parts might work for some people and some might not for others. Helping them figure it out is done with a combination of CSM, training, FAQs and other. Because remember: the onboarding process needs to be tailored to the customer.

Credit cards

Merchant fees often need to be paid out of your own pocket. Customers can be habitually late on their payments, so one solution to that would be to charge their credit cards. Businesses have accounting systems that allow them to keep all the relevant data regarding credit cards so that they can be charged each month. This way, the transaction is always on time. 

There is one obvious downside, though: the service of delayed payment itself has an overhead, a small fee. It is up to you to watch out for exorbitant merchant fees. These financial obligations can go well into single digit percentages that become your fees and responsibilities. It might not sound like a lot but it ads up over time. At the end of the fiscal year, you will be looking at large numbers of unnecessary expenditures that could have been avoided.

Following up

Even with customers that are in good standing, it can happen that they get behind their payments sometimes. It is usually because your invoice did not make it all the way through using the standard payment channels. The first invoice is usually the hardest to complete from start to end. The reason for that is that you are not in their system yet. 

Once the first one passes, it becomes routine, though. Some companies and customers have special requirements usually in the form of paperwork that needs to be filled out before they pay you anything. Make sure to meet them halfway on this as it will make life easier for everyone. When an invoice is past due, try and see what they can do to lead it through their system. Usually, it comes down to a single person holding up the chain of approvals and needs a bit of reminding to keep everything moving.

In closing

Speed is crucial in order to increase the onboarding process, reduce customer uncertainty, and manage expectations. Thanks to the advancements of technology and online platforms you have an automated customer onboarding solution at your disposal. The benefits these solutions bring are easily measurable and comparable. Onboarding is an art and a science. It comes down to a well-balanced ratio between creativity, quality content, and solid data. It is the single most significant contributor to business success and deserves your special attention and dedication.