The digital transformation of HR operations is undeniable. Recognizing the power of HR technology to automate routine tasks and deliver actionable insights, companies are rapidly adopting digital HR tools to manage their workforce. This evolution has given rise to new HR technologies, making the market increasingly crowded and competitive.
Looking at the future of HR technology, providers have to find ways to differentiate themselves that goes beyond the software they offer and looks at the client experience. Part of that experience — what can be described as a new client’s first impression — is client onboarding.
The Impact HR Tech Client Onboarding Has On…
Retention Rates
Upon completion of the onboarding process, clients should feel confident about their ability to use an HR technology’s features and functionality to their full potential. It helps them see value from their investment faster, which sets the stage for increased satisfaction and the greater likelihood of a long-term partnership. This has big financial implications since — as one industry leader notes — it can cost a SaaS provider four to five times more to acquire a new client versus retain an existing one.
Referral Business
When clients have a seamless onboarding process, they are inclined to talk about the experience with their professional network. This positive word-of-mouth can ultimately lead to referrals, as HR professionals value the opinions of industry leaders they trust. Alongside a formal client onboarding process, HR tech providers can establish a formal referral program that incentives clients with discounts and rewards to share their stories.
Cross-selling & Upselling Opportunities
In a survey of 500 sales professionals, 72% who upsell and 74% who cross-sell said it drives up to 30% of their company’s revenue. By establishing trust with an HR client, a good client onboarding process helps open the door to conversations about additional services or upgrades. At the same time, providers are more in tune with a client’s HR challenges and goals, which makes it easier to recommend services and upgrades that are relevant to their needs.
Product Adoption
Providing thorough training and educational resources to clients during onboarding can significantly impact how likely clients are to embrace the HR technology in their daily work. The same can be said for the level of support provided in these initial stages. If a client deals with a technical roadblock in the onboarding process and promptly receives support, it establishes a sense of confidence that makes clients more inclined to use the technology without hesitation.
Speed of Revenue Recognition
The faster a client is successfully up and running on HR technology, the faster clients can start to use the technology in their daily HR operations and pay for these services. While effective client onboarding supports this short-term win, it also minimizes the risk of client churn in the long-term. Fewer delays and difficulties in the onboarding process help preserve revenue from the initial sale and a healthier bottom line.
Profitability Metrics
Did you know improving the client experience can increase sales revenues by up to 7% and profitability by up to 2%? By decreasing the likelihood that clients will churn, a good client onboarding experience enables a recurring revenue stream while saving HR tech providers the time and cost of having to replace lost clients. Well-structured onboarding also reduces a provider’s operational costs as fewer resources are needed for support.
Business Expansion
With less client churn and more opportunities for cross-selling, upselling, and referral business, HR tech providers with a seamless client onboarding experience are positioned to drive organic growth. While fostering a loyal client base, providers have the means to reach new markets and industries to support business expansion. These opportunities give providers a leg up on the competition in a time it’s needed most.
Invest in Your Future: Invest in Client Onboarding
The verdict is in: when it comes to the future of HR technology, client onboarding is an indispensable tool for success. With all that’s on the line — client retention, revenue, referral business, etc. — it makes sense for HR tech providers to consider investing in solutions that support a more seamless and effective onboarding experience for clients.
Setuply is that solution. Our onboarding automation platform reduces the time and effort it takes to get clients up and running on HR tech while providing clients with the tools to customize workflows, maintain project visibility, and access support during onboarding. So while you can improve capacity management, your clients will feel more empowered.
Prepare to experience the future of HR technology onboarding. Request a Setuply demo!