The Ultimate Guide to Client Onboarding

24 April 2018 Amelia Henderson Best practices

Effective client onboarding processes are imperative for creating a positive first impression on new customers, facilitating the onboarding of multiple clients at one time and meeting necessary compliance regulations. These efficiencies in your customer onboarding process can save your business valuable time and money.

Companies can use DueDil to conduct customer identification checks, find historical credit records and identify sanctions against potential customers as part of their KYC processes.

Read on to find out more about client onboarding, or find out how DueDil can help your company’s client onboarding process.

What is client onboarding?

Client onboarding is the induction process a company undertakes when it brings on a new customer. Customer onboarding takes place at the initial stages of a customer-business relationship and is a crucial stage of the KYC process.

The importance of effective client onboarding

An inefficient and drawn-out client onboarding process can cause customers to become frustrated, and may even resulted in them switching to a competitor. An effective customer onboarding process:

  • Ensures the company is meeting compliance requirements
  • Accelerates the onboarding process, enabling companies to onboard more clients
  • Provides a positive user experience for clients, boosting customer satisfaction
  • Creates greater efficiencies and improves sales effectiveness
  • Reduces the number of customers who drop out before client onboarding is complete

Client onboarding process

  1. The first stage of the client onboarding process involves collating data and identification documentation on the customer.
  2. In order to verify this information, the second stage involves conducting a series of background checks. These customer identification checks uncover related entities including beneficial owners, parent companies and portfolio companies.
  3. Companies may also run historical checks at this point in the onboarding process to identify any fraudulent activity involving the client or sanctions against them.
  4. This information is then analysed to determine whether the client is a high or low risk customer.
  5. If the client is deemed to be a low level risk customer, business can then commence.

Client onboarding best practices

  1. For successful onboarding of new customers, it’s essential that companies maintain frequent communication with their client. Customers who feel neglected during the initial onboarding stage are much more likely to drop out, so regular communication is critical to keeping the number failed client acquisitions low.
  2. To ensure that companies comply with the relevant KYC and AML requirements, it’s critical that they collect the necessary data. Not only does collating the relevant information help companies with compliance measures, but it also helps them to truly understand who their customer is and what their needs are.
  3. Companies must have access to a reliable source of data for customer identification checks. DueDil provides the latest company information for over 40 million companies, time-stamped company records and historical credit reports. This helps companies to get a detailed and holistic view of their customer.
  4. It’s important that companies define their client’s goals and understand their reasons for coming onboard with their company early on. That way, companies can set expectations and manage the customer’s experience to ensure that they are working to the same goal.
  5. Gathering regular feedback from the client about their experience is another great way for companies to understand where the weaknesses are in their client onboarding process. Rectifying these issues can help companies to improve their customer onboarding practises and ensure that customers don’t drop out before onboarding is complete.

How DueDil can help

Automate onboarding
DueDil can be used to automate customer onboarding, enabling companies to streamline and shorten the process for new customers and ensure accuracy throughout the KYC process.
Monitor for risk
Businesses can use DueDil to conduct thorough customer identification checks to verify their information. Companies can also locate historical company records and uncover sanctions against a customer.
With DueDil, companies can monitor their customers on an ongoing basis and set up alerts for any changes to their credit score, financials or ownership. This ensures that they can stay informed about any new potential risks.
Find new prospects
Using DueDil, businesses can identify new and existing clients that meet their ideal customer profile and provide their sales and prospecting teams with in-depth data to inform their approach.