A lot of effort goes into getting customers to the checkout page. Marketing, advertising and SEO optimization get customers to the ecommerce site.
Great site UX and UI make it easy for customers to find the products that they want. Clever offers, discounts and deals incentivize customers to go ahead and make the purchase. If, after all this effort, customers drop off at the final step, the payment stage, then merchants suffer lost sales and revenue, not to mention the potential impact on customer satisfaction that results when people are unable (or unwilling) to complete a purchase.
Ingenico ePayments market research shows that 60% of orders are abandoned before the payment stage is completed. That means three out of every five customers add something to their basket but don’t complete the purchase. Of course, we’re not the first to try and understand how many customers abandon their shopping baskets. Hundreds of pieces of research into this area have been conducted, and the Baymard Institute even reviewed 41 different cart abandonment studies to calculate an average rate of 69.57%.
And if we just look at the payment stage, further research by Ingenico ePayments found that one out of every five customers leaves the payment page for one of the following reasons:
- Payment options – The customer’s preferred payment option wasn’t available
- Security – The customer wasn’t convinced that their payment data would be secure
- Technical problems – For example, a website error or a crash during the payment process
- Too many steps – The process was too long, with too many pages or form fields
- Personal information – The customer didn’t feel comfortable sharing some of the requested personal information on the payment page
- Can’t find credit or debit card – The customer was unable to locate their card to enter their details
And while it’s useful to know the common reasons why customers abandon the payment page, it only goes so far. All merchants are different. The reasons why customers fail to convert will be unique to each business and there is no one-size-fits-all approach to optimizing the payment funnel.
Which is why access to payment data can be a total game changer.
A data-driven approach to optimizing payments
With payments data, merchants can make better decisions about what is happening with their customer transactions. With access to comprehensive, aggregated payment data on all transactions, merchants can easily monitor and identify the reasons why customers fail to complete their purchases and make the changes needed to optimize their payment funnel for more successful sales and greater revenue.
Clear, actionable payment data can help merchants spot opportunities to streamline the payment experience and delight customers. It can also act as an early warning system, allowing merchants to spot issues causing failed payment and rectify them.
Let’s take payment method as an example. Selling online means you can sell to anyone in the world. But if you don’t let a customer pay with their preferred payment method, they won’t convert. And while credit cards are still dominant as a payment method globally, every market has a local payment method that buyers prefer.
Beyond the aforementioned reasons customers might abandon the payment page, there are numerous reasons why a transaction can fail even after the customer submits their payment details. Consider the authentication stage, in which the buyer has to prove they are who they say they are, an additional step that adds friction to the customer experience. Then there are the fraud prevention measures performed by issuers and acquirers that in some circumstances reject genuine transactions. Not to mention simple things like the fact that issuing banks will decline a transaction if the customer does not have enough funds in their account.
Along all these steps in the payment chain, an optimized configuration can make or break your customer’s experience and your business’ success. Clear, insightful payment data can help you identify the reasons why transactions are failing, what stage of the payment funnel the issues are occurring and, most important of all, how to remedy it so your customers can successfully complete their purchases.
In order to effectively identify and rectify issues with the payment funnel, payment data needs to be aggregated, collected in a single place and organized in a transparent way that makes it easy for merchants to derive actionable insights.
Ingenico’s Business Intelligence tool MyPerformance platform provides simplified insights into transaction data across the payment process, using intuitive dashboards to display key payment performance metrics over time. It gives you instant access to key metrics like location, average transaction value, conversion rates, and many, many more.
Armed with this data, you can understand the aspects of your payment funnel that aren’t working for customers. It can help you identify where to focus your optimization efforts, so you can streamline conversions and drive more sales. Once you know what the problem is, solving it becomes much easier.
To learn more about how to can use data-driven insights to optimize conversions, discover our experts’ video here.
Or join us for our exclusive webinars:
October 13th - Performance des paiements : La clé pour optimiser votre business e-commerce (FR)
October 27th - A Data-Driven Approach to Maximize Payment Conversion (EN)
October 29th - Een data-driven aanpak om je betaalconversie te maximaliseren (NL)
This article was originally published on blog.ingenico.com. Since October 28, 2020, Ingenico has joined Worldline.