Every step between a customer and his or her intent to purchase entails “friction,” and business logic dictates that less friction generally means more purchases. The idea behind friction-less platforms is to eliminate as many of those steps to purchase or register as possible.
Online consumers are faced with several different decision-making opportunities: the more they have to make, the closer they are to experiencing decision fatigue. In other words, preventing them from feeling overwhelmed will avoid the fact of them leaving the site or app without taking action because they don't know what they want, which leads to cart abandonment.
What does friction look like for consumers?
Speaking about the fintech ecosystem, a potential user is faced with different stages to complete the registration process, including identity validation and in some cases, credit score verification. For some specific situations, this bureaucracy can take up to several days before confirmation and is one reason why more than 80 percent of potential users “drop-off,” especially if they have to do all this from a platform they are not familiar with.
Other reasons that I'm aware of, thanks to our customer feedback, are:
- Customer service: poor experience when help is needed, including problems with services offered;
- Product descriptions: insufficient details about features or lack of images of the good to be purchased;
- Security: concerns about reliability, especially about the payment process.
So, what type of experience converts potential users?
The challenge is to strike a balance between convenience based on quick-and-easy access and adequate controls that provide a guarantee of security.
However, companies must now recognize that there is a gap between security measures valued by customers and onerous financial regulatory controls that create friction and, therefore, make for an unsatisfactory customer journey.
Generally speaking, unsatisfied journeys are caused by poor user authentication and complicated, lengthy or difficult-to-navigate security measures. With multiple hurdles to overcome, customer experiences can be inadequate.
According to Experian's Global Fraud Report, 42 percent of millennials would transact more online if there weren't so many security barriers. The percentage falls to 30 percent for those 35 and older.
This means that the first step on this path is finding a regtech that cares about providing a frictionless customer experience, means and increasing potential customer engagement and organizational revenue.
At Truora, we have worked hand in hand with more than 100 fintechs in Latin America, helping them to grow with solutions focused on their specific needs. From our experience, the best development was the integration of processes, such as background checks and identity validation, with secure and familiar chat platforms that have also achieved great acceptance among the population, such as WhatsApp (the No. 1 messaging app in Latin America) and Telegram.
This has helped them to increase the number of potential converts by up to three times, for an acquisition value two times less. Check this case of study here as an example.
Employing solutions adjusted to digital security, with a high degree of automation, means verification will not be an inconvenience for your potential users.
It is possible to acquire more users at less cost, recover unfairly blocked users and reconnect with your users in real time through chat platforms that already have up to 90 percent conversion rates, in a practical, efficient and safe way.