Management summary
Users are easily lost during onboarding if they are required to invest a lot of effort into an untested value proposition. Small steps that align effort and perceived value are state of the art.
Native app users are the most valuable customers but they are also the most expensive in terms of acquisition cost. A sound customer acquisition strategy focuses on value and cost and optimizes for life time profitability.
Cost of app installs
Native app users have the best metrics in terms of customer engagement and retention. But assuming that you get the lowest acquisition cost from forcing customers into your native app very early in their life cycle is the wrong conclusion.
Your customers typically engage with you for the first time somewhere on the web. They see an advertisement or a google search leads them to your offering. From here, it is your task to convert as many visitors to paying customers as possible. The way to track this is your cost per acquired customer or simply your spending on advertising per new customer. You will learn that a new customers costs you anywhere from CHF 500 to CHF 2000 in paid advertising. With a strong brand you will pay less because you get people to look for you, which is “free” (i.e. you don’t have to pay google to be found).
Next, you look at each step it takes a user to become your customer. Where you lose a lot of leads, you optimize.
If you do this thoroughly, you will find out that the app stores are a black hole. You send well qualified traffic to the app download and there you lose 90% of your traffic because consumers shy away from the cognitive load of downloading and installing and then finding the app on their device. There are just too many distractions available during all the steps they have to take.
The cost for traffic and the mediocre conversion work together to make it “blindingly expensive to drive native app installs.”
fidentity is here to help you with the problem of losing customers during app install. With fidentity you can perform mandatory compliance steps right in the web browser, which creates a much leaner conversion funnel for the user with no distractions. Our customers have told us that conversion has doubled with a switch to our web based KYC service. Think about the math for a moment: You can literally cut your acquisition cost in half.
And what good is it, if I have less committed leads and lose them later, after KYC? Very simple: If your onboarding journey is a journey of small steps instead of steep cliffs, you will lose fewer customers and thus your overall funnel will be more efficient. Your customer acquisition cost will go down.
about fidentity
fidentity provides software for compliant digital customer identification according to finma rules. The user just takes a selfie and scans their ID document. This can take place on any cell phone in the standard browser without app. Using artificial intelligence (AI), fidentity checks the authenticity of the documents and extracts all data. The identification is completed in real time and all relevant documentation is provided to the financial intermediary in real time. fidentity is audited according to the ISAE300 standard.
fidentity – simple, secure, flexible
