Checkout and Payments How to remove 40% of checkout frustration with one solution Last updated on July 10th, 2024 At GENE, we’ve developed (pun intended) a reputation for being the Checkout & Payment Experts – whether it’s through our work with PSPs like PayPal and Adyen or integration projects with US payment giants Shift4. These projects, coupled with over 10 years in ecommerce, have given us access to a wealth of data and insight that we’ve put to good use with extensive research and innovative checkout solutions. Whether it’s buy now/pay later or pay by bank, we’ve optimised every step from the basket through to a successful order. In this blog post, we explore one of our most impactful solutions, and the research that led us there. And if that’s not enough insight for you, then checkout our other blog posts in this series; 5 simple ways to improve your checkout and Cart abandonment: Explained Firstly, lets delve in to the data and understand the problem… Top 10 reasons for checkout abandonment Extra Costs Too High (Shipping, Tax, Fees) – 48% High shipping costs, taxes, and additional fees can come as an unpleasant surprise to customers, leading them to abandon their carts. The Site Wanted Me to Create an Account – 24% Forcing customers to create an account can be a significant barrier. Many shoppers prefer a quick and seamless checkout experience without the hassle of registration. Implementing a guest checkout option can help reduce abandonment rates by making the process more convenient. Delivery Was Too Slow – 22% Speed of delivery is a critical factor for online shoppers. Long delivery times can deter customers from completing their purchase. Providing various shipping options, including expedited shipping, and clearly communicating delivery times can improve customer satisfaction and reduce abandonment. I Didn’t Trust the Site with My Credit Card Information – 18% Trust is paramount in online transactions. Customers need to feel confident that their payment information is secure. Displaying security badges, SSL certificates, and offering secure payment options like digital wallets can build trust and encourage customers to complete their purchase. Too Long/Complicated Checkout Process – 17% A lengthy or complicated checkout process can frustrate customers. Simplifying the steps, minimising form fields, and offering one-click payment options can streamline the process, making it more user-friendly and reducing the likelihood of abandonment. I Couldn’t See/Calculate Total Order Cost Up-Front – 16% Hidden costs that only become apparent at the final checkout stage can lead to cart abandonment. Providing a detailed breakdown of the total cost early in the shopping process helps set clear expectations and can improve conversion rates. Website Had Errors/Crashes – 13% Technical issues like website errors and crashes can disrupt the shopping experience and lead to abandonment. Ensuring that the website is stable, well-maintained, and optimised for performance can minimise these disruptions and keep customers on track to complete their purchase. Returns Policy Wasn’t Satisfactory – 12% A clear and customer-friendly returns policy can influence purchasing decisions. Customers want to know that they can easily return or exchange items if necessary. Highlighting a hassle-free returns policy can increase trust and reduce the fear of commitment. There Weren’t Enough Payment Methods – 9% Offering a variety of payment options is essential to cater to different customer preferences. In addition to traditional credit and debit cards, integrating digital wallets, Buy Now Pay Later (BNPL) options, and other alternative payment methods can enhance the checkout experience and reduce abandonment. The Credit Card Was Declined – 4% Payment failures due to declined credit cards can be frustrating for customers. Providing alternative payment methods, such as digital wallets, and clearly communicating the reasons for payment failure can help customers complete their purchase without unnecessary friction. Next, we explore how to solve 40% of checkout frustration with one solution… Reducing friction with digital wallets. Data without insights is meaningless, and insights without action are pointless. Which is where digital wallets come in. Digital wallets have transformed how businesses, both online and instore, handle transactions. They offer customers seamless, secure, and rapid payment options which has resulted in the likes of ApplePay, Google Pay and PayPal becoming a checkout staple. In fact, of the top 10 reasons for checkout abandonment, 40% can be solved by the introduction of digital wallets, removing: account creation frustration, trust issues, lengthy forms and limited payment options. But the real power comes when you add payment wallets to the top of the checkout – reducing the payment process from an average of 80 touches to just 2! By introducing wallets up front you’ll create a smoother and more seamless checkout process – further closing the gap between mobile and desktop conversion rates and boosting revenue. This approach allows customers to bypass the standard checkout flow and expedite their purchase, leading to improvements in mobile conversion of anywhere between 8-15%. GENE Commerce: The checkout experts. When it comes to checkout success and the world of online payments, our experience does the talking. If you’re struggling to understand your customer behaviour, or effectively prioritise your roadmap – we can help.
