51% of Consumers Will Abandon Online Products or Services in the First Month after Purchase, Highlighting Importance of Onboarding Strategies
New data on digital product abandonment and consumer preferences reveals that customer onboarding strategies are integral to businesses’ abilities to retain customers. Businesses need to design onboarding strategies with a long view to support users throughout their journeys.
WASHINGTON, April 6, 2021 /PRNewswire/ — Consumers are just as likely to abandon products within the first month of use (51%) as they are in the months following (49%), according to a new report by The Manifest — a business news and how-to guide.
Companies providing digital products and services will need to craft customer onboarding strategies that support consumers throughout their entire journeys to retain them.
Bruce Hogan, CEO of the technology research firm Software Pundit says, “The single most critical thing that your onboarding process must do is get [users] to experience and understand the value of your product or service.”
A successful onboarding strategy should enable customers to realize value from their purchases, whether it’s the first or fifth month after their initial purchase.
Onboarding Experiences Influence Consumer Spending
A successful onboarding process would increase 46% of consumers’ likelihood of spending more on a product or service.
Companies foster more value by helping new customers successfully onboard to products or services, which means enabling them to familiarize themselves with their new purchases.
To promote greater investments in their products or services, businesses should design an onboarding experience around consumers’ needs.
Ethan Taub, CEO of a financial goal mall — Goalry — recommends that business leaders think like customers when building their customer onboarding strategies.
He suggests asking, “What would make it better for you?”
Businesses can realize greater financial success by building an onboarding experience that sets customers up for success.
Research Precedes Consumers’ Purchases
A majority of consumers (70%) conduct research before purchasing a product or service online, which suggests that customers already have some understanding of features and benefits.
By designing an onboarding experience that attends to customers’ expectations and knowledge base, businesses can generate greater satisfaction.
Although most customers do research prior to making a purchase, it’s important for companies to meet customers where they are.
Szymon Golyski, chief marketing officer at Channels, a phone solutions company, said: “Don’t assume it’s easy to use your product because it’s easy for you to use it.”
Businesses should take into account the research conducted by consumers prior to buying products or services in their onboarding strategies.
The Manifest’s 2021 Customer Support Survey included 502 U.S. consumers. For questions about the survey, comments on the findings, or an introduction to the sources included in the report, contact Kate Russell at firstname.lastname@example.org.
Source: The Manifest
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