How can a good KYC process boost conversion rates?

Protecting a company against fraud is critical nowadays, but also reducing friction in the KYC (Know Your Client) process for new customers. Establishing the correct KYC process can positively impact your business as it speeds up the onboarding process and engages your customers with a pleasant experience.

This means that during the registration, the user should only need to provide basic information like name, age, gender etc. Once registered, the user will be guided to the KYC process where the rest of the information will be gathered as easily as possible. Finally, once all the information is provided, the user will be allowed to access the account. 

So what is this Conversion Rate Optimization all about?

It is the practice of increasing the percentage of users who perform a desired action on a website. These actions include purchasing a product, clicking 'add to cart', signing up for a service, filling out a form, or clicking on a link. CRO can turn website visitors into customers, helping you take advantage of a new influx of traffic to your site by making free trials, purchases, and signups attractive to your users.

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Some ideas to improve the CRO:

• Include social proof: A study commissioned by Trustpilot found that  49% of consumers consider positive reviews one of their top three purchase influences. Having presence in social media and opinions from previous customers will help, without a doubt, your conversion rate.
• Have a strong CTA (call to action): It is a very important part of the conversion rate. An example could be an option to subscribe to a newsletter, a post shared in social media, a pop up chat offering a call etc.
• Live chat: Whenever a new user arrives at your website, they may have some questions to ask. Providing the option of a quick reply to those questions with a live chat will definitely help you with the conversion rates.
• Communicate your product goals: having a landing page where you can clearly communicate your value proposition is also the key to improve the CRO.

Designing the KYC

During the verification process, some tips should also be followed to avoid users leaving the platform.

• Inform the users before the identity verification begins

Giving users as much information as possible will boost their chances to move through your conversion funnel. One idea is a quick video demo with the steps the user will need to follow before the process begins.  Another idea is to write a small recap about the importance of identity verification. 

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• Give feedback during the verification process

Sometimes, users may not understand a step of the process if the information is not clearly provided. For instance, if the user needs to upload a quality-picture, they might have a different idea of what that means. So if they upload a picture that is not valid for your system,  you will need to go back and ask the user for a reupload, this will definitely create friction. Consequently, users may give up before they get to the end.

Try to provide instant feedback to the users by providing onscreen messages about the picture they are uploading. This will allow them to complete the verification process at their first try.  Let the user know how much longer the verification process will take. This will help the user to continue avoiding frustrations. 

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• Send reminders for users that have not finished their verification

Sometimes a user can be registering on your website while working or traveling by train. Consequently, the KYC verification cannot be done at such time. Send a  reminder to the users that have not completed the verification process... 

• Inform your users after verification

After the users have provided the information required, always let them know the status of their account. It may be approved, declined or under review but in any case, the reason needs to be explained. 

In Conclusion 

Security is vital but to improve the conversion rates, you also need to focus on the customer experience. Reducing friction and understanding the needs of the users will help improve their KYC journey experience.

To summarize, advanced security features and methods, regulation compliance, and a seamless customer experience come together in creating a great onboarding and identity verification solution. Achieving  the right balance is essential to the best possible customer conversion rates.