Transforming into a Business for the Future Generations, Today

Transforming into a Business for the Future Generations, Today

A recent study based on a challenge conducted among college students in the United States showed that younger generations, particularly those in the last tail of millennials and the beginning of Gen Z, are struggling with their financial literacy and the current onboarding abilities provided by financial institutions to enroll for their services through apps or online. Though this focuses on the financial sector, the truth is that many businesses across the board have to take a hard look at their digital onboarding practices because they might not be as effective or intuitive as they may think. 

Let’s start with some of the statistics of the study to better understand the areas of improvement: 

  • 40% of young users abandoned the onboarding process when applying for a bank account.
  • Banks rejected students without providing an explanation of the denial.
  • Students were directed to a website or a branch when trying to apply in the mobile app.
  • Students felt the chatbots did not properly guide them through the process.
  • Students reported the process taking longer than the application promised.

When almost half of your prospects give up on your onboarding process, this is a clear sign that it’s too complicated. Though millennials and Gen Z-ers tend to get a bad rap over many things, technology is usually their area to shine. Roughly half of Gen Y-ers and all of the next generation were the first to grow up with devices in their hands, and thus they’re known as the digital natives. Technology comes easy to them and so when the generation that intuitively knows how to navigate the web or mobile apps can’t quite figure out what’s next… there’s a problem. 

Another of the problems mentioned in here is about being redirected to another channel. As much as this may sound like a “first world problem” of the younger generations, this is basically the same as when clients get redirected multiple times during a phone call, or made to wait at the franchise and state their issue multiple times to different people. This isn’t exclusive to digital onboarding though. On social media, for example, native videos (meaning, those placed directly on the feed that can be seen on the same platform) perform much better than a link out to YouTube or any other video hosting site. Everyone is saturated with their time, and anything that is not convenient or makes them spend more time than anticipated is not likely to get seen or receive positive feedback. This is a key aspect we wanted to mention because as we’ve said before, it’s important when designing a digital onboarding experience that everything be integrated in one place. If your customer needs to exit out and use another link, page, app, etc. to complete the process, they’re likely to deduct positive points from the experience. Whether you’re focused on the online or app front-facing process, make sure it’s 100% achievable within that channel. 

When it comes to chatbots, the jury is still out on how customers feel about them. In general, the veteran generations still prefer to talk to a human, while the newer generations don’t really want human interaction and are perfectly comfortable dealing with a robot, as long as their issue is fixed correctly, If you’re leveraging virtual assistants for your digital onboarding experience (and you should), you need to ensure that they guide the customer to the right place, or risk them possibly leaving negative reviews or abandoning the process altogether and going to a competitor. 

It’s abundantly clear by now that if as a business, you’re trying to attract, engage, and retain younger customers, your company needs a digital front that works for those customers and that provides the right experience for them. Oftentimes businesses only get one opportunity, a first impression, to enchant and earn a customer’s patronage. This is a lot of pressure, especially in such a competitive landscape, but you don’t have to endure it alone. At Lagash, we specialize in crafting processes and systems end-to-end, and our team of experts is equipped to help you create the best possible experience for your customers, regardless of their generation. It’s time to take advantage of technology and the latest innovations to help you foster amazing customer experiences, and we have the tools to make it happen. Contact us for a consultation.