Costly Mistakes & Recent Findings
Counted among our 5 Most Costly Ecommerce Mistakes of 2017, payment method optimization is a must. Over the past year, we’ve seen a big push towards Apple Pay, PayPal Express, and even Venmo becoming “must-have” holiday payment methods for online stores. The reason? Customers that can click-and-go are more likely to convert.
With this in mind, we recommend reviewing what ways your site can keep gift-giving second-guessing to a minimum. In our mobile conversion optimization report, we found a few simple tweaks to reduce checkout abandonment and increase the likelihood of customers converting. If you don’t have time to review the full report, here’s our 3-minute breakdown as our gift to you.
Holiday Payment Hack #1. Zip-Code-First
On almost every site, the checkout form is the same, always starting with the customer’s first name. Sure, the name, phone, and email address areas might auto-fill based on browser settings, but location information isn’t always part of the one-click equation. Working with one of our clients, we found that a simple re-stacking of the typical model can cause checkout disruption to the tune of a 4.6% conversion rate lift (across all devices). Placing the zip-code first triggers browsers to auto-populate the country, city, and state data, making your checkout faster. In our report, we found that this simple change can yield conversion increases of 1.48% for desktop, 8.14% for smartphones, and a whopping 18% increase for tablets. Put this on your holiday upgrade wish list.
#2. The Card-Detecting Checkout
As the second test in our study, Redstage’s developers created a credit card checkout form that automatically detects the type of card entered based on the first 4 card numbers. I know, I know, you have that already, but what you don’t have is a checkout form that uses this data to automatically adjust your checkout form into the layout of the customer’s credit card. Different cards have their numbers, expiration, and even security codes in different areas, making the typical credit card form a little lacking in the CX department. Imagine a new customer with their card in one hand and their phone or tablet in the other. Now imagine them fumbling as they try to figure out how to enter their info… don’t let this be an opportunity for them to abandon the sale. Our smart bit of code automatically matches the form to the card in-hand, making it easier to fill out. Remember, the less friction, the better.
It might seem like a negligible CX change at first, but for phones and tablets, this smart checkout option drove a 3.7% and 6.1% conversion rate lift, respectively. The test didn’t add so much for traditional online checkout, only increasing desktop conversions by 0.4%… but every little bit counts right? How much extra joy would these numbers add to your holiday return?
#3. The Big One: PayPal-First
For the third and final portion of this 3-step study, Redstage analyzed what happens when we place a “PayPal Express Checkout” button above the traditional “proceed to checkout” button on the product page… The results were astounding. This change led to a 10.3% decrease in checkout abandonment across devices. That’s right. Simply putting the PayPal checkout option first on the page led to a 8.7% decrease in abandons on desktop, 11.2% less abandonment on smartphones, and shockingly, a 30.7% decrease in abandonment on tablets.
With so many payment options out there, it’s easy for the simplest conversion enhancements to go overlooked. Remember, it’s not just how customers can pay, it’s “how quickly” customers can pay. Want to get these holiday payment upgrades and more for free? Join round 2 of our conversion study now! Sign up here to see if you qualify for this round, and don’t forget to subscribe to receive the results of our next conversion report 2 weeks before anyone else!
With every new store display that goes up both in the physical and online stores, we are reminded the holidays are here. Online retailers put in a lot of effort to prepare their store for the holidays because of the potential increase in purchases (especially last-minute). The increase in customer traffic means there are potential increase in challenges; how you effectively deal with these challenges, can either make or break you to cement your online presence. Here are some of the challenges that you may face and how to address them:
#5: Increased website traffic
This is a great part of the holiday season but could have a negative effect on your store. It’s good because increased traffic can convert to increase in sales, however, unpredictable traffic could mean surges which may make your store go offline, something you obviously do NOT want to happen. To avoid this coordinate with your hosting company and your technology partners to ensure your disc space and bandwidth are increased appropriately. There are cloud hosting options and many other solutions to ensure that your store stays up and running during the holiday rush.
#4. Shipping Demand
The last thing your customers’ need to worry about is whether their items will be delivered on time. Not meeting your delivery schedule results in an unhappy customers who could take theirs and other business elsewhere. Evaluate your shipping options to see where it lacks and ensure it meets all potential customer demands. Any and all logistic issues with shipping products also increases your customer service requirements and taxes your staff causing mistakes and furthers the discontent of your customer base.
This doesn’t only effect small or medium sized ecommerce businesses. Just recently, we heard an internal story of a holiday related snafu with regards to Walmart. Their system shipped out a product incorrectly and it took a Redstage staff member 3 lengthy customer service calls to get it sorted out! This type of customer experience is why sites lose customers and what can stifle growth. Make sure your systems are running smoothly and your staff is trained to avoid these types of problems.
#3. Bad User Experience
Customer expectation for the look and ease of use of your online store can be very high. It is important to exceed this expectation to ensure that the user experience (UX) for the customer is memorable but most of all easy to use. Your products should be easy to find via navigation or search and contain enough product information to convince the customer to complete their purchase. Mobile optimization for your store is especially important in this day and age since a large percentage of shoppers use their mobile devices to shop online. Work closely with your web team’s designers and developers to optimize your store’s UX.
#2. Payment Fraud
The increase in online purchases during the holiday season also means you and your customers are more at risk to be victim to payment fraud. It is important to your customers to know that your website is secure since their card and bank information can be easily stolen if a merchant does not take the proper security measures. According to the National Retailer’s Federation, the average retailer loses 0.68 percent of revenue to fraud. This does not include the cost to you for fees, time and overhead and the loss of customer trust. Customer trust can cascade exponentially to ruin your brand and lose you much more than the industry average over time. To effectively manage this risk ensures that your store is in Payment Card Industry Security Standard Council (PCI) compliance, monitor customer daily transactions to look for any red flags in customer spending, use the address verification system and the Credit Card Verification Value (CVV).
Also, make sure that your software platform is up to date – We’re looking at you Magento 1.7 users! The security issues that can arise from out of date software need to be fixed immediately to protect you and your customers from hacking and fraud.
#1. Stock Control
It’s important to have sufficient stock to meet customer demand for the holiday season, it is also just as important to ensure you are not left with a large amount of holiday stock going into the new year. Make sure to monitory inventory ensure you have adequate amounts of stock for potential orders and storage is not an issue. Pull a report on your best-selling items in the last few months to ensure you’ve ordered the appropriate stock levels in time for Christmas. If you’re running any flash sales or pushing deeply discounted loss-leader items, you should have the data to support the inventory levels and not run low or end up with massive overstock.
Overall, these challenges aren’t impossible to overcome. If your company is facing any of these holiday difficulties or in general need any help or support with your store, please get in touch with Redstage anytime. You can reach us at 1-888-335-2747 or email us at [email protected].
Discover the top trends, insights, and strategies from the 2018 holiday season here!