April 19, 2021
Building a long-term FinTech business takes time and effort. The most critical parameter that determines any startup’s success is the number of customers it acquires and retains. But let’s face it, bringing new customers is no easy task.
FinTechs tend to spend much time, effort, and energy in drawing customers to their platforms and applications only to realize that their efforts have been futile. Furthermore, with increased competition, it has become even more challenging to attract and then onboard customers. With all the money spent, tracking customer acquisition costs has become one of the key metrics closely inspected by FinTechs.
FinTechs focus on extensive marketing, which involves efforts and high costs. However, customers look for a product/service that fits their needs while also providing them with convenience, minimum interaction, and quick resolution through digital mediums. And things tend to take a turn for the worse when a customer goes through the final application process/onboarding process; this is where most startups fail to convert. To put things into perspective, the abandonment rate across all digital industries was as high as 79.17% in 2018.
For any business, losing a potential customer is one of the greatest threats to revenue. In the digital-first world, customers’ impatience with application experiences is negatively impacting startups from e-commerce, financial, healthcare, and insurance, among other industries. The more the customers need to interact during the checkout, onboarding, or application process, the lower the conversion ratio. As a result, money pumped into marketing is driving startups’ customer acquisition costs. According to a study by Wolfgang Digital, customers who had to click only once on any platform had a conversion probability of 40%; as the number of clicks increased, the probability of converting potential customers decreased.
In the real world, startups need to gather information on their customers for security reasons, such as fraudulent account openings and onboarding spams, which, if ignored, would lead to a bad reputation, making it even more challenging to attract customers in the long run.
The good news is that Prove Pre-fill™ removes the customer burden of application data entry by populating applications with verified data and delivering authenticated digital identities to quicken the process, thereby offering a better customer experience.
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