Consumers Want Convenience: How To Optimise Your Online Payment Journey
We live in a fast-paced world where time is in short supply, so convenience is the one trend that is outshining everything and consumers don’t want to wait to pay.
According to the most frequently updated study in online marketing from Baymard, cart abandonment rate is at 69.23%, based on an aggregate of 37 other widely cited studies.
Why Customers Give Up
People abandon the checkout process when it takes too long. On average consumers stay on a webpage for under a minute, not long to maximise the customer experience and conversion. Too many entry fields – especially on mobile devices – and consumers give up. The majority don’t come back, associating the brand that took up too much of their time with delays and a poor user-experience. Most of the time, they turn to a competitor or try another way to accomplish what they need.
Unfortunately, one bad checkout/purchasing experience can weaken that customer relationship for months, even years to come. Hence the drive towards ensuring online shopping, mcommerce and the overall checkout experience is as frictionless as possible.
Make sure your customers don’t need to fill out lots of details: Create a checkout experience that involves as few clicks as possible, remembering previous visits or pulling the relevant data from social media authentication (for guest customers) to reduce friction and increase the chance that they will complete the purchase.
Take everything into consideration. From the position, size and colour of call-to-action (CTA) buttons to the images and copy used to sell products or services; everything must drive customers through the sales funnel to the checkout.
After the Purchase
Convenience and a frictionless payment journey, throws up some unique challenges for merchants.
Once a customer has clicked ‘Buy Now’, in this frictionless future, they need to be certain they are happy for the money to leave their account. A frictionless payment journey could potentially be forgotten by the customer just as quickly as it happened. This can be particularly challenging for merchants selling digital products or services as the customer may not have anything tangible to remind them of their purchase.
Therefore merchants should be mindful of chargebacks. These can occur when a customer sees a transaction on their bank or card statement that they have no recollection of. With many people banking through apps and online – not just younger generations anymore – transactions show up quickly. The problem is when people don’t know who or what the payment is for, they tend to want that money back.
A chargeback can cause cashflow stress and other problems for anyone that sells products and services online. Too many chargebacks can also result in fines from card schemes, banks, and even cause merchant acquirers, payment providers and processors to close accounts, cutting off businesses and organisations from online revenue.
Here are a few ways to optimise your online payment process to avoid chargebacks:
#1: Automate the post-sale process. Send an automatic email, confirming the order and value. Ensure they know how – if there is any cause for ambiguity – the transaction will appear on their bank statements.
#2: Automatic delivery and receipt tracking. When an order is physical, you need to know a customer has received it. Building processes into the delivery model so that signatures are recorded makes it a lot harder for some customers to commit ‘friendly fraud’: claiming a package was never delivered, thereby asking for a chargeback.
#3: After-sale service. Check the customer is happy. Send an email with a request for a review, or simply asking if they are happy with the goods/service they have received. This is a way to stop customers asking for refunds whilst offering a good service.
#4: Make transaction details clear. When consumers check their bank or card statement and see transactions with companies they do not recognise, a chargeback is likely. Merchants can ensure that the details recorded reflect the website and brand the consumer bought from. If the brand forms part of a larger group or holding company, make sure the transaction information reflects the brand, not the parent company.
Online sales should involve the minimum amount of hassle and stress for customers. But making the checkout process too easy comes with other risks, such as chargebacks. Make sure people know they have completed a purchase. Remind them of the order, amount and how it will appear on statements, then check they are happy with the goods or service.
Not only will these actions reduce the risk of chargebacks, but you are also delivering excellent customer service as part of the experience.
For more advice on customer conversion read this post – The Online Payment Journey Starts On Your Home Page