E-commerce: optimize your conversion rate by streamlining your payment process – Imagem

Last stage of an online purchase act, payment sometimes alienates customers without explanation. But how to remedy this avoidable situation?

German philosopher Friedrich Nietzsche is credited with the expression “the devil is in the details”. It is still current, especially in the field of e-commerce. A few years ago, Google’s development teams had to test as many as 41 shades of blue, one by one, to find the best performing color for links in commercial search content.

All these efforts have only one objective: to influence consumer behavior on the Internet and trigger a purchase act. The stakes are worth the effort: increasing conversion rate by 0.1% can have a considerable business impact on a merchant’s bottom line. Marketers around the world spend huge sums, on the order of 100 billion dollars a year, to test and optimize the web pages of commercial websites.

Specialized agencies, technicians, coders and designers share the cake, but often forget a final but crucial step: payment.

According to a study carried out by Edgar, Dunn & Company on payment procedures in 2022, 87% of Europeans abandon the basket during the purchase, most of them at the time of payment. The reason is simple; payment is often very complicated to get. Some companies forget to offer a numeric keypad on the cell phone. Therefore, it is difficult to quickly enter a payment card number. Others do not show VAT, or even delivery costs, before the final stage. Still others pay little attention to building their customers’ trust, forgetting to include a reassuring message like “Verified by Visa” (or otherwise).

Considering the dimension of e-commerce worldwide, losing up to 1% of sales translates into an evaporation of 55 billion euros in turnover. Attrition reduces the conversion rate and this is not good news for e-merchants, who are facing a slowdown in their activity after 2 years of euphoria. Simplifying the checkout process is a good way to protect margins and get closer to a 100% conversion rate.

Today, marketers need to think about conversion across the entire customer journey: from Google search to checkout. If your mobile app or website makes it even harder for your customers to pay, you will lose sales. To avoid this, here are five best practices to implement ASAP:

1. Optimize payment for all devices: tablet or smartphone. A page that does not adapt to the user’s screen makes payment difficult. 15% of customers say they will abandon a transaction if it is not suitable for their device.

2. Let customers pay however they want, otherwise they risk going elsewhere. Offering the right payment methods, including local payment methods and mobile wallets, can significantly increase your market opportunity.

3. Let customers pay when they want. Some want to use the deferred payment offered by providers like Klarna, Clearpay or Alma. Enabling this leads to an increase in conversion and revenue of over 20% on average.

4. Make it easy for customers to enter personal information and shipping address to reduce friction at checkout. Each additional step adds friction and reduces conversion. An auto save and fill feature makes future purchases a lot easier.

5. Increase average order value on checkout page. Up-selling and cross-selling are not intrusive if the products offered are relevant. Think about the last time you added a magazine or candy to your shopping cart while waiting in line at the supermarket checkout.

Over time, implementing these best practices should spark some interesting conversations among your marketing managers, payment managers, and eCommerce website developers. Every nuance, tested and then approved, can have a positive impact on your income statement.

(The published forums are the responsibility of their authors and do not involve CB News).

Leave a Comment