Simple but Effective Checkout Optimisation

Simple changes to the payment stage of checkout could boost conversions and customer loyalty, as Moshe Winegarten, Chief Revenue Officer, Ecommpay explains.

When it comes to e-commerce conversions, there is always room for improvement. But it’s not always easy to see where to start, or what will be the most efficient and effective changes to make. The first step is to understand why drop-offs occur.

The latest Ecommpay study, which we conducted with IMRG and its diverse retail community, investigated exactly this. Designed to help online retailers optimise the checkout process and improve the customer journey, the results have been published in a report, 'eCommerce Checkouts: UK Retailers Reveal Their Checkout Strategy and Performance', which provides actionable advice to help payments professionals enhance their customers' purchasing journey, reduce basket abandonment, and boost conversion.

During our research we found that the average conversion rate is just 58%, leaving plenty of room for improvement. It was interesting to see the difference between multi-page and single-page checkouts, where average conversion rates sit at 56% and 61%, respectively. Clearly simplicity and efficiency are key, but what are the main friction points merchants need to address to get more conversions?

To find out, there are a number of key metrics merchants should track, so they can pick up and rectify problems early:

• Conversion rate - The percentage of users who finalise a purchase after starting the checkout process. This figure helps ascertain how well the checkout experience supports transaction completion.
• Cart abandonment rate - The percentage of users who add items to their cart but leave before completing the purchase. Reducing abandonment is key to improving conversion rates.
• Conversion funnel - The customer’s journey is tracked throughout the checkout process, from adding items to completing payment. Analysing drop-offs at different stages helps identify any friction points.

Painful payments

Our study found that, on average, checkout abandonment occurs at nearly 90% of the typical length of time it takes to complete a payment. When a customer has taken time to input their data and abandons the purchase at such a late stage, there is clearly a significant barrier that must be addressed.

Some of the most common reasons for cart abandonment include:

• Unexpected costs, such as high shipping fees or taxes appearing late in the checkout process
• Complex checkout process, including complicated forms, multiple steps, or account forced creation
• Limited or lack of suitable or familiar payment options
• Concerns about security
• Slow website speed and a sluggish checkout experience
• High shipping costs or long delivery times
• Change of mind or losing interest before finalising at checkout

Focus must be placed on improving the payment experience if conversions are to increase. One simple but effective change is to add tools like ‘try again’, which can save consumers from restarting the checkout journey in the event of a declined transaction. From our experience with Ecommpay clients, we know that this increases conversion from 2% to 4%.

Simple steps to optimise payments

The key to optimising checkout conversion rates is to simplify the process, increase transparency and provide a smooth user experience. A streamlined, efficient, user-friendly checkout can bring significant improvement to the bottom line. Below are some of the key strategies e-commerce businesses can use to optimise checkout and improve conversion rates:

• Simplify – A simple, streamlined checkout process reduces friction and helps users finalise and complete their purchase(s) with minimal effort, reducing cart abandonment.
• Single-page vs. multi-step - Consolidating all checkout elements (billing, shipping, payment, and review) onto one page, when possible, minimises clicks and effort, providing a faster and more positive experience.
• Enable guest checkout – Forcing customers to open an account increases the chance of drop-off, and with 59% of orders coming from guest customers it could make a big difference to profits. A ‘guest checkout’ option eliminates this barrier so customers can check out quickly.
• Reduce data entry – Filling in personal details is one of the biggest checkout pain points, especially for mobile users. Keeping the number of fields to a minimum and enabling autofill options can help speed up the process, create a smoother checkout experience and improve conversions.
• Express checkout - Offering express checkout options such as digital wallets (Apple Pay, Google Pay) or Click to Pay reduces friction by allowing users to complete their purchases in just a few clicks.
• Usability and accessibility - A checkout must be easy to navigate and accessible to all users, including those with disabilities. Download our guide to digital accessibility for more information and practical tips.
• Manage expectations - Visual cues, such as a progress bar, inform users where they are in the checkout process and how many steps remain, managing expectations and making users more likely to complete the checkout.
• Branded checkout - Using highly customisable hosted payment pages can improve the user experience by offering a seamless, branded checkout without redirecting customers.
• Optimising for mobile users - Ensure your checkout is responsive, with large buttons, minimal data entry fields, and autofill features to boost mobile conversion.
• Try again - Payment authorisation failures can cost you sales. Implementing a “try again” feature allows users to switch to an alternative payment method if their first attempt is declined.
• Think currencies - If you operate internationally, displaying prices in local currencies reduces confusion and helps customers understand costs, improving their checkout experience.
• Payment options - It is essential to cater to a diverse customer base. Popular options like credit cards, PayPal, and BNPL (Buy Now, Pay Later) solutions such as Klarna appeal to different types of shoppers.
• Optimise for trust - Display security badges, SSL certificates, and familiar payment options like Visa and Mastercard helps reassure users, and be transparent with shipping costs, taxes, and other upfront fees.
• Partnering with the right payment provider - A good payment provider will offer seamless integration, support for multiple payment methods, and features like fraud prevention and payment authorisation optimisation. Working with a provider that offers expert support can help continuously improve your checkout process - and keep you ahead of the competition.