Six Ways to Drive Conversions and increase revenue at check-out
With all the important benefits that marketing, the management of inventory, as well as employees provide to businesses but without a proper checkout process, sales can't reach the top of the pyramid.
Astonishingly high numbers of online shoppers get through to the checkout page, but then abandon their shopping carts. There are a few variations in the research, but it happens around 70 percent of the times. 1.. If you were able to cut this down to even 50% what revenues would your company earn?
PayPal found that a typical large ecommerce site could increase their conversion rates by 35% by implementing a better checkout system and that this could be worth around $260 billion in the US as well as Europe. This represents an incredible possibility for you to increase sales by just improving this one part of your site.
Let's take a look at the how you can boost your revenue and drive more sales by optimizing your online checkout process.
1. Offer one-click checkout
People abandoning their shopping carts for all sorts of motives. A common reason is that the process is too time-consuming or complicated.
Eliminate any unnecessary actions. Remove requirements to create an account during the checkout flow. Eliminate fields that you do not need.
2. Optimize the mobile shopping experience
The study previously mentioned revealed that, even though the majority of internet browsing occurs through mobile devices, mobile conversion rates are much lower than tablet computers or desktops. Why? There's more to it than small screens, which render it difficult to read and contrast items, as well as navigate through pages. Mobile conversion rates also decrease due to slower load time, the overflow of areas, limited possibilities for payments, and perhaps most of all, fears regarding security.
42% of users do not feel satisfied with shopping on mobile devices, in part due to misalignment between consumer expectations on checkout pages and merchants' features. Merchants face challenges with abandoning checkout because of poor user experience. 2
Security is an essential factor too, which is one of the reasons why so many people like to shop via their mobiles and make purchases later. It is four times greater likely 3 to return when you provide a great shopping experience. Create a simple experience to them, and they could earn more than a one-time customer.
So, what are you able to do to improve your shopping experience using mobile devices?
Accept different payment methods. Reduce load time by eliminating the use of plugins, ads and images. Accelerate the process of checkout by using PayPal as it will auto-fill address and payment information, which is often a issue on mobile.
In speeding the process and cutting out the necessity of an actual credit card individuals may feel less concerned about security.
3. Offer and promote "buy today, pay later" as payment options
Customers want choices. They are looking for flexibility. And they want the ability to spend the money they require while also managing their budgets. If you give them that kind of flexibility during the checkout process, your customers are more likely to make a purchase.
Offering them the option to buy today and pay over time is a great way to deliver this financial flexibility.
The good news is that PayPal Pay Later choices are included in PayPal Checkout without additional cost:
- Pay later offers temporary credit option that allows customers to pay for purchases in interest-free payments, while businesses get the money up front. 4
- PayPal Credit 5 (U.S. only) is a special type of financing that can be used for purchases of larger amounts. Customers are able to pay in installments while businesses get paid up upfront.
Businesses that promoted PayPal Credit via their site had a growth of 21% in sales compared to those that did not. 6
When using PayPal Credit messaging on their website, businesses experienced a 56% increase in the average PayPal order amount. 7 That's massive!
PayPal pay later can also help boost sales for stores. 64% of consumers believe they are more likely to purchase from a store that offers interest-free payment options. 8
That could mean more sales conversions and greater profits.
4. Offer subscription and recurring payment services
By the end of 2020, subscription-based ecommerce revenues reached around twenty billion dollars 9 in the United States alone and sales will likely to increase to over 30 billion in 2024.
McKinsey discovered three different types of subscription models. Find the one that makes the most sense for your business:
- Replenishment - sell commodity things like razors, pet food.
- Curation - offer great variety and a wide selection of items to our members. This is especially useful in clothing, beauty, and food items.
- Access - make a club or exclusive opportunities and discounts.
In terms of marketing replenishment, it appeals to the "save time as well as money" impulse almost everyone shares. Curation is a way to experience the joy of being surprised and delighted by the diversity and novelty of items. Access is a way to feel unique.
5. Offer upsells and add-ons
Making suggestions for relevant products gifts, ideas for gifting, accessories, and other relevant offers that are timed well on the checkout page are an excellent way to conclude the sale and potentially boost the size of your order.
6. Enhance security and trust
82% of consumers think that security of their payment data is very important when considering the best method to pay for an online or mobile buy. 8
It is important to choose your words carefully. "Secure checkout" is better than just "checkout." It is a way to "verify" your email address, but not "re-enter" it. Seals of trust, badges and return policies, as well as guarantees They can help in winning confidence as well as giving customers confidence regarding the safety of your site's checkout process.
Making it easy to upgrade your checkout process
Customers can pay with one click without leaving your website in 26 different currencies. Additionally, it offers pay later options like PayPal pay later and PayPal Credit.
Using PayPal is a great way to enhance the shopping experience as well as reduce cart abandonment. This can lead to an increase in revenues.
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This article is for informational purposes only. It is recommended to seek out independent advice on tax, business as well as financial opinions before making any business decisions.
- Us Retail Ecommerce Performance Metrics Salesforce Commerce Cloud, eMarketer Insider Intelligence July 2020. accessed December 09 20th, 2020.
- Study conducted on commission by Forrester Consulting on behalf of PayPal, September 2020.
- Navigating a New Era of payments, Ipsos MORI Conjoint Research, accessed Dec 09, 2020.
- Information on Pay Later (Pay within 4 days in the U.S.) A consumer are charged a late fee for missed payments and varies by consumers' state of residence. Credits for California residents are made or approved under the California Finance Lenders Law License. PayPal, Inc. is a Georgia Installment Lender Licensee NMLS #910457.
- PayPal Credit is subject to credit approval by consumers.
- Average annual incremental sales based on PayPal's analysis of internal data from 210 medium and small market merchants with annual online sales up to $37MM with buttons and messages against a broader category of retailers that did not, with 24 months. continuous DCC volume from January 2016 to November 2019. Then, the /em>
- The average lift in the overall PayPal AOV for merchants with PayPal Credit messaging vs. the ones without, in 2019 PayPal internal information.
- A study online was commissioned by PayPal and conducted by Logica Research in May 2020 with 2000 US users, half of them of them were PayPal Credit users, and the other the other half weren't PayPal Credit users. May 2020.
- U.S. Subscription Ecommerce Sales, eMarketer Insider Intelligence, March 2020, accessed Dec. 09 in 2020.