We assume a prominent return policy, site security badge, and shorter checkout process will lead to an increased conversion rate, but is this truly the case? Many online retailers are both time crunched and resource strained. They are unable to legitimately test which tactics do and do not work. Unfortunately, when determining which best practices to adopt, decisions are often based on hunches and not fact.
A new report evaluates the checkout strategies of the Top 100 Internet Retailers and seeks the correlations between the checkout tactics and success rates. The Ecommerce Checkout Report observed top performing online stores for 23 specific checkout characteristics affecting the customer experience in three categories 1) speed and ease of use; 2) security and confidence; and, 3) profit enhancement.
The report attempts to answer questions like: Does a shorter checkout process really decrease shopping cart abandonment? Should you use an order confirmation screen? Does live chat improve conversions? Study samples included a variety of vertical market groups including apparel and accessories, computers and electronics, and both high and low ticket value product retailers.
Interesting findings within the report:
- Conversion rates were nearly double at retailers selling high ticket priced items when coupon code entry was not available.
- Conversion rates were a full 40% higher where Top 100 retailers did not request a CVV (Card Verification Value), yet over 55% of them do.
- 36% of Top 100 retailers offer alternative payment options such as PayPal, Bill Me Later, or Google Checkout, but conversion rates were convincingly higher at retailers who did not offer alternative payment types - more than double at retailers selling high ticket value items.
Principal report researcher, Jason Billingsley of Elastic Path Software -- an ecommerce software vendor, explains, "Our goal with this report is to give online retailers a yardstick for comparing the effectiveness of their own checkout strategies. Hopefully, it will give them incentive to start testing tactics that seem to be most effective for increasing conversions."
Beyond the complimentary report, readers can hear anecdotal commentary at an upcoming Webinar on May 17 at 12 p.m. ET with panelists Jason Billingsley and noted industry expert Stephan Spencer of Netconcepts. Webinar registration is free and the format will allow for questions to the experts. The collected conversations will form the basis of a follow up prescriptive report including objective recommendations for improving conversion rates in specific industries.
Read The Ecommerce Checkout Report and companion blog series (no registration is required):
Ecommerce Checkout Report and companion blog series
Sign up for the interactive webinar:
Ecommerce Checkout Report Webinar
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