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Boost conversion rates by tailoring the online verification process during customer onboarding

A common rule of thumb is that B2B companies should spend between 2 and 5% of their revenue on marketing. However, for B2C companies, the proportion is often higher — between 5 and 10%. According to the Gartner 2022 CMO Spend and Strategy Survey, marketing budgets increased to 9.5% of overall company revenue in 2022, up from 6.4% in 2021.

Since businesses accelerated their digital appearance and started onboarding clients online, the onboarding process has gone through alterations. Some companies have used this digitalization to increase revenue, while 90% of companies lose potential customers during online onboarding.

A crucial part of online onboarding is online verification. This process is the first impression of your brand that influences customers’ engagement with your company in the future. The image that you achieve with online verification will make your customer stay.Or leave, depending on the experience.

In this article, we will discuss the online verification pitfalls so that more companiescan increase their revenue by optimizing their clients’ digital verification journey.

Leveraging online verification solutions in a way convenient for your customers drives conversion rates and establishes digital trust between parties.

Online verification is no longer a separate event. It is a core part of the seamless onboarding process. The process that regulatory environments can complicate. They demand extra steps for authentication in some industries, like fintech businesses, BFSI, marketplaces, and cryptocurrency & blockchain service providers. Businesses must comply with government laws and regulations and adhere to guidelines set by regulatory bodies.

Besides being a compliance measure, customer verification helps reduce risks of fraud or identity theft, as well as costs and expenses arising from incorrect information provided by customers.

How does digital onboarding work?

Onboarding is the process of setting up customers with a product or service when opening a new account. It involves verifying their identity through ID verification and can include biometric measures such as selfie matching, liveness detection, fingerprints, voice recognition, and iris scans. Onboarding also includes collecting personal data such as email address, phone number, physical address, and possibly credit card information.

Digital online onboarding simply means that new customers can complete these steps without entering a brick-and-mortar store or branch.

Marketing prediction

In the next decade, most companies will face the challenge of combining user convenience and security requirements related to data transfer processing.

According to a Forrester study on digital identity verification, 78% of decision-makers need identity verification tools to balance customer experience and security.

For different sources and channels, users are often uncomfortable providing details for screening purposes. Often basic credentials such as name, address, and official ID number are not enough to recognize a person and develop relevant profiles. Therefore, to gather relevant data, service providers need to act responsibly and make identity verification processes more transparent.

BFSI, marketplaces, cryptocurrency, and blockchain service providers often view online verification as an obstacle. For example, the fintech and e-money customer onboarding benchmarking report states that:

• 14% of firms see the most dropout when customers need to provide name, address details, and address document

• 50% of firms see the most dropouts when the customers need to provide an ID document

• 14% of firms see the most dropouts when customers need to give an address document

• Over 13% of online customers abandon their purchases due to poor and lengthy customer verification procedures.

However, if businesses optimize the authentication process, this so-called liability will become become a conversion asset.

Companies can spend time & resources on creating their own soft or find a partner provides identity verification as a service and integrate it into their product via SDK or an API. Using a third-party provider has significant advantages. The company constantly works on the product to make online verification run as smoothly as possible.

Secondly, you save money on CAC. Most online verification providers structure their pricing plans to decrease the price for one customer with the increase of your customer base. The cost per verification will decrease, thus directly affecting CAC. In allPass we charge the customer only after a user passes successful verification. So if for some reason, the user fails to complete the process, you won’t be expected to pay.

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How to Increase Your Conversion Rates during Identity Verification

Make your soft convenient for users worldwide

• Ensure that the verification process can be conducted in multiple languages. Find a tool that offers customizable language support for your users wherever they are from and languages they speak.

• Choose a high-precision document tool for customers’ identification. Most providers have AI-based document type detection technology that identifies a specific document by comparing it to its database. So pay attention to the number of documents that can be read by the soft. allPass’s database features 12,161 documents and counting.

• Onboard Every User, Every Skin Tone. Studies conducted by the National Institute of Standards and Technology have found that the algorithms have a more challenging time recognizing people with darker skin. Inclusivity will directly influence your brand’s image and make it possible to reach more customers worldwide.

Utilize images from extreme scenarios

Requiring users to take photos and send them across networks can become a verification barrier.

Most users complete the verification process using mobile devices. To complete this process, a verification provider must supply a mobile SDK integrated into the clients’ app. The mobile SDK instantly increases the size of an app. As a result, it slows down the downloading and requires a more stable internet with a high-speed connection. So what about users who only have access to the 2-G zone? For cases where providing a good internet connection is impossible, allPass can provide a lightweight custom SDK that works smoothly even on the oldest devices and unstable Internet connections.

This means that the app is smaller, and customers can verify themselves, even if they must complete verification in extreme conditions.

Cooperate with governmental services to speed up the verification process

Governments worldwide are trying to create digital ID verification platforms, offering citizens secure access to public services. Primary concerns regarding implementing such services are the security and protection of personal data.

A paperless doc check is available to Ukrainians via a governmental online public service provider, DIIA. The app does not store personal data. It only displays information from the registers in response to a request from fully identified users.

As an online verification provider, we can integrate any governmental service like DIIA into your verification process. This significantly simplifies the verification procedure for both parties.

Create UX that builds trust

To make the registration and identity verification process as painless as possible for your consumers, you should provide clear instructions on how to solve any potential occurring problem.

For instance, before taking a photo with a document, we provide users with clear instructions like “Make sure the camera does not cut your face, hair doesn’t cover your face, and you don’t wear sunglasses”. Be there at every stage of the process.

If the customer still needs to complete the process, you can send them reminders and information about the steps they must take to complete it. In addition, build trust in the registration and verification flow by providing information about the company’s regulations and privacy policies.

For your users to understand that verification is a part of your company’s process, you can add the info about it to the FAQ section. This will prevent confusion and establish more trusting relationships between your product and them.

Take care of the UI

The verification process should no longer be a separate event. It is a part of coherent customer onboarding that should not stand out from the overall experience. That is why allPass verification flow can be modified to suit the needs of our clients.

For example, our product allows clients to customize the design of the verification section, so you can blueprint it according to your brand book and keep the identity of your product. Add animations and elements according to your UI, so the user remains “inside the product” during onboarding.

Additional features to minimize client’s effort

These tools are obligatory for your provider since they directly improve your conversion.

• Dock photo frame, which shows how to take a photo of a document.

• Automatic photo when the dock hits the frame.

• Passive liveness. It determines whether a single frame in a captured and submitted selfie is genuine.

Acquiring a new customer is one of the most expensive elements of your business. So don’t let a lousy verification process cost you them.

Seamlessly integrate elKYC in your onboarding flow. Verify ID Documents, match selfies, and perform liveness detection from anywhere in seconds.