The final step in an online purchase, payment, sometimes drives customers away without explanation. But how can this avoidable situation be remedied?
The German philosopher Friedrich Nietzsche is credited with the expression “The devil is in the details”. Especially in the field of e-commerce, it is still up to date. A few years ago, Google’s development teams had to test up to 41 shades of blue in order to find the best-performing color for links in commercial search content.
All these efforts have only one goal: to influence consumer behavior on the Internet and trigger a purchase. The stakes are worth the effort: a 0.1% increase in conversion rate can have a significant commercial impact on a merchant’s revenue. Marketers around the world spend huge sums, on the order of $100 billion a year, to test and optimize merchant site websites.
Specialized agencies, technicians, programmers and designers share the cake, but often forget one last but crucial step: payment.
According to a study by Edgar, Dunn & Company on payments in 2022, 87% of Europeans will abandon their shopping cart while shopping, a large proportion of them at checkout. The reason is simple; Payment is often too complicated to achieve. Some companies forget to offer numeric keypad for mobile phones. It is therefore difficult to quickly enter the number of a payment card. Others fail to state the VAT amount or even the delivery cost before the final stage. Still others pay little attention to building trust with their customers, forgetting to include a reassuring message like “verified by Visa” (or others).
Given the size of e-commerce worldwide, a loss of just 1% in sales means a loss of €55 billion in sales. Friction decreases the conversion rate and this is not good news for e-merchants who are facing a slowdown in activity after 2 years of euphoria. Streamlining the checkout process is a great way to protect margins and get closer to a 100% conversion rate.
Today’s marketers need to think about conversion across the entire customer journey: from Google search to checkout. If your mobile app or website makes it just that little bit more difficult to pay your customers, you’re losing revenue. To avoid this, here are five best practices to implement as soon as possible:
1. Optimize payments for all devices: tablet or smartphone. A page that doesn’t adapt to the user’s screen makes it difficult to pay. 15% of customers say they abandon a transaction if it doesn’t work for their device.
2. Let customers pay how they want, otherwise they risk going elsewhere. Offering the right payment methods, including local payment methods and mobile wallets, can greatly increase your market opportunities.
3. Let customers pay when they want. Some want to use installment payments from providers such as Klarna, Clearpay or Alma. Approval leads to an average increase in conversion and sales of more than 20%.
4. Make it easy for your customers to enter personal information and shipping address to reduce checkout friction. Each additional step adds friction and reduces conversion. An auto save and fill feature makes future purchases much easier.
5. Increase average order value on checkout page. Up- and cross-selling are not intrusive if the products offered are relevant. Think about the last time you put a magazine or candy in your shopping cart while waiting in line at your supermarket checkout.
Over time, implementing these best practices should lead to some interesting conversations between your marketing managers, payment managers, and ecommerce site developers. Every nuance, examined and then approved, can have a positive impact on your bottom line.
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