While many of us have heard and used the term onboarding many times, it’s still somewhat loosely defined and often means very different things. It’s telling that a keyword search for “onboarding” using dictionary.com or merriam-webster.com comes up empty.
At a very basic level, onboarding refers to the process of bringing new customers “into the fold” — providing details around any next steps they need to take, important information about the organization they are doing business with, additional/complementary services they might be interested in, etc. Onboarding can be thought of as a welcome packet, but often one that is delivered in sections over time rather than a single piece.
Financial institutions often miss the mark (or part of the mark) in onboarding programs by becoming overly focused on a single objective, such as the cross-sell component. Neglecting the other key elements of effective onboarding can have a trickle-down effect that negatively impacts the cross-sell objective these institutions are driving toward. Let’s look at a few examples of how this can happen.
Ill-Timed Cross-Sell
Whether it’s based on a buyer propensity model or simply a clear relationship between complementary products, suggesting additional services to account holders as part of an onboarding program is viewed as a critical component by many financial institutions, and rightly so. However, the focus on getting the right products/services in front of the right account holders is often based on basic profile data and information supplied during the account opening process, which doesn’t take into account the mindset of the individual post-account opening. Attempting to cross-sell account holders who were anything less than satisfied with the experience of working with your institution is not only unfortunate timing, but it creates the wrong perception during what should be a period of relationship building.
Making It All About You (Not Them)
An account holder makes the choice (yes, it’s a choice) to engage with a communication sent by your financial institution, and what do they see? Chances are, it’s something presented as being valuable to them (e.g., Don’t Miss Our Lowest Interest Rates Ever!) but in reality, it holds more value to their financial institution if action is taken. What type of information is being provided to truly help the account holder?
Providing financial education resources is a great way to give account holders information that they can put to use in their everyday lives, and it’s the type of content that demonstrates value in the communications sent from a financial institution. Establish that value and remain consistent to create an audience of engaged recipients who will be much more likely to pay attention to your promotional messages.
Forgetting to Onboard
Are you saying “thank you” just for the sake of saying it? If treated as nothing but a formality, an onboarding program is a missed opportunity. Even a simple welcome letter holds enormous potential — to have an account holder’s attention for even a few seconds, and not do anything about it, is a shame. Ask account holders about their experience while it’s fresh in their minds, and reach out if any issues are reported to make it known that you’re listening. Provide useful information, such as support hotlines or other resources where they can turn for assistance. Give them information they can use, and give them time to get acclimated. Cross-sell messaging is a natural next step after the initial onboarding process has taken place, but both phases are very important. Effective products can solidify relationships, just as solid relationships can open up opportunities for additional products to be sold.
Harland Clarke Digital believes strongly in the role of onboarding for new account holders. Our SpringBoard program combines content marketing, email communication, survey distribution and ongoing data analysis to help financial institutions make the most of the opportunity to connect with, learn from and extend the relationship with new account holders. Learn more about SpringBoard.
