RetailTechNews’ weekly roundup brings you up-to-date research findings from around the world. In this week’s edition: Long Online Checkout Costs Revenue; Confirmation Page Can Drive Further Sales; and Retailers Struggle to Innovate.
Long Online Checkout Costs Revenue
Almost nine-in-ten (87%) online shoppers will abandon their carts during the checkout process if it is too long or too complicated, according to a recent survey by monthly instalment payment solution Splitit.
Retailers should be even more alarmed to hear that 55% of consumers would not only abandon their carts, but also never return to that retailer’s site. With cart abandonment rates hovering at about 70%, and the success of e-commerce businesses at stake, e-tailers must continue to invest in the online shopping experience, providing an efficient checkout process to ensure customers remain loyal and revenue continues to grow.
While 83% of millennials would not complete a long or complicated checkout process, 90% of those aged 55+ said they would not follow through with a lengthy checkout. What’s more, 12% of millennials also reported that they would exit a lengthy checkout, but return to the site later, compared to only 7% of those over the age of 55.
Millennials were less bothered by ads, with only 19% reporting that too many ads during the checkout process would cause them to abandon their cart. This contrasts with 28% of those aged 45+, who would abandon their cart if they felt there were too many ads.
Confirmation Page Can Drive Further Sales
The confirmation page is the number one overlooked opportunity for e-commerce executives to drive further revenue and improve the buying experience, according to Rokt.
The company’s ‘They click buy. Now what?’ report uncovered that only 2% of e-commerce executives ranked the confirmation page as the most important stage of the customer purchase journey when, research would suggest consumers feel otherwise. A recent study revealed that 74% of consumers agree they are happiest when shopping online – more specifically immediately after completing a purchase.
“The discrepancy between the potential of the confirmation page, and the reality of how e-commerce executives are utilising it, is substantial”, comments Ant Hearne, chief commercial officer at Rokt. “Over 1.6 billion people bought goods or services online last year, making the confirmation page the single most neglected piece of online real estate.”
Most e-commerce executives prioritise highest immediate revenue opportunity, with 66% labelling this as the number one priority when allocating resources. Additionally, customer experience remains an important focus, with 45% of e-commerce executives acknowledging it as high-priority.
Half (50%) of e-commerce executives agree their organisation finds it difficult to balance this tension between driving incremental revenue and preserving the customer experience. Lack of business resources (45%) is the highest noted barrier to prioritising the confirmation page. If barriers were removed, personalisation (67%), feedback opportunities (57%), and internal offers/marketing initiatives (50%) were considered the most interesting additions.
Retailers Struggle to Innovate
Keeping up with technology advancements is the biggest challenge for retailers, according to data from RBTE. According to the study, 35% of retailers cite this as their biggest obstacle.
Issues around meeting customer experience expectations is cited by a quarter (25%) of retailers as the greatest barrier facing their organisations, while driving and retaining customer loyalty (6%) and delivering personalised services for shoppers (6%) are also obstacles.
Concerns around competition and saturation of the retail market were also cited by 10% of the retailers polled, which also reflected uncertainty around the changing role of retail stores and retailers’ operations.
Matt Bradley, show director at RBTE, said: “Innovation is king in the retail industry – and business leaders must now, more than ever, define and prioritise driving digital transformation into their own strategies, whether through omnichannel customer service, payment options, product access, or clever shipping opportunities.”
“The evolution of technology within retail is shaping how consumers behave and interact with brands. Retail technology has become central to retail and continues to shape the future of the sector – and it’s our role to showcase the most innovative, new, and exciting retail technology products, services, and solutions crucial to the success of modern multichannel retailing” ,he concluded.