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To help your business keep customers on the road to purchase, we’ve identified the prime reasons for abandoned checkouts and provided recommendations on ways to address these issues.
Customers don’t all agree on what’s most important to the shopping experience. To get ahead of competition, retailers need to know their customers well enough to meet their individual preferences throughout the shopping journey. By tuning into the unique needs and nuances of smaller but meaningful segments of customers, businesses can identify incremental improvements and capitalise on marginal gains.
It’s an inspiring time to reimagine the future. New technologies – like virtual reality and artificial intelligence – are redefining the shopping experience. And brands are finding new, creative ways to deepen their customer connections via strategic use of personalisation, social platforms, and sustainable brand initiatives.
These developments run in parallel with increased consumer expectations regarding choice, convenience, and frictionless checkout experiences. Consumer expectations remain high – even as inflation, supply chain disruptions, and other macroeconomic factors pose considerable challenges. But resilient, successful businesses continue to navigate the rough waters by keeping the customer experience at the forefront.
“Consumers shop with their wallets, but they also shop with their hearts. When purse strings are tightening everywhere, it’s important to focus on making your brand memorable – and build unique connections that help encourage conversion and drive loyalty.”
-Dr. Tiffany Raymond, Head of Global Customer Advocacy, PayPal
Our top 10 practical tips can help you build trust across checkout and general operations.
Each tip is designed to help you:
Create a frictionless checkout experience that helps drive customers across the finish line to complete their purchases.
One of shoppers’ biggest barriers to completing a purchase can be not knowing the final cost prior to checkout. Roughly one third of global consumers say “Not knowing what the final cost will be before getting to the checkout page” is what frustrates them the most about their ecommerce shopping experience.1
Customer-centric programs and transparent communication can help shoppers overcome the uncertainty around shipping costs and drive conversion.
Returns are a natural part of the retail experience – both online and off. Online shoppers buy multiple items with the intent of returning what doesn’t fit or is no longer wanted. As online sales have exploded, so have returns.
In 2019, online returns as a percentage of online sales were 9.6%, and in 2021, this number more than doubled to 20.8%.2 To top it off, consumers expect to be able to return their items for free. In fact, 78% of shoppers agree that free shipping on returns is essential or nice to have.3 Customers want options when shopping, and also when returning, so it’s critical to get it right.
Buy now, pay later (BNPL) continues to be popular with consumers. Offering this option lets customers split the cost of a purchase into several instalment payments over time. It’s a great way to help purchases become more affordable and for consumers to stay in control of their budgets. You get paid upfront, while they pay later.
Actively promoting BNPL choices can also help increase conversions, as consumers paying with buy now, pay later are up to 3x more likely to complete a purchase after browsing.4
People connect to purposeful brands with values that reflect their own. Now more than ever, consumers are seeking out businesses that are making strides to combat climate change, and there’s nothing more inclusive than taking care of the earth, the biggest thing you share with your customers.
Upscaling and highlighting your sustainability efforts can help enhance customer loyalty, and in some cases could be the reason a customer chooses you over another brand. But be careful when approaching sustainability as solely a branding issue. Consumers, investors, and employees are savvy. They want to see tangible efforts – efforts that many consumers reward by paying a premium. For example, 73% of consumers worldwide are willing to pay more for eco-friendly packaging5 and 82% of global respondents say they expect CEOs to take a public stand on climate change.6
Shoppers are becoming increasingly interested in the metaverse and virtual spaces as places to explore goods and services. 50% of consumers 18-75 years old are either current metaverse participants or are considering testing it out.7
Virtual spaces can provide an immersive, engaging environment for a customer to truly experience a brand. This is your opportunity to design a world where you can best tell your brand story, and how you go about it is limitless.
Use virtual spaces to learn more about your customers and understand how to tailor engaging experiences for them. Don’t let competitors get the virtual edge. Retailers have found that users are spending an average of 14 minutes interacting with virtual showrooms, compared to two minutes in 2D stores.8 26% of respondents to a global consumer insights survey said they have participated in metaverse-related activities in the last six months for entertainment, virtual experiences, or product purchases.9
Creating a customer connection to your brand – whether that’s via social, deals and offers, or virtual spaces – can encourage consumers to think of you instead of your competitors when they want to shop. Ensuring the process is as frictionless as possible can help increase conversion and instil trust – further cementing their bond with your brand. The retail basket abandonment rate in 2022 was 71%, but recommendations can help reclaim that abandonment and grow your customer base.10
With more than 400 million active global accounts in 200+ markets, PayPal understands consumer preferences, shopping behaviours, and checkout optimisation – and can help tailor your online experiences to get customers to complete purchases and keep them coming back.
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