The Wild Digital SEA 2021 conference kicked off online again and we had the privilege of learning how online sellers can improve their sales conversion rates. This panel is extremely relevant as it comes at a time when many businesses, large and small, are operating online.
In an approximate 30-minute seminar by Sarita Singh, Stripe’s regional growth manager, she shared her thoughts on some common but often overlooked mistakes made by online sellers.
These pitfalls are usually a direct cause of customers abandoning their shopping cart at checkout, preventing companies from claiming their participation.
8 out of 10 sales fail on the checkout page
The rise of e-commerce amid the pandemic presents a huge opportunity for businesses in the online space. But it also pushes them to capitalize on this potential and deliver the best customer experiences. This is all the more true as the online world becomes more and more competitive and crowded.
“Businesses like yours spend a lot of time and money building brand awareness, driving website traffic, and optimizing product pages, all with the goal of getting people to perform. a purchase on your site, ”said Sarita. As a result, ad spend in APAC is expected to reach US $ 229 billion.
However, 8 out of 10 sales fail on the checkout page. So, for many companies, most of these investments go up in smoke at the last minute due to poorly constructed funds.
To identify these oversights, research by Stripe and Edgar, Dunn & Company was conducted to analyze the payment flows of the top 500 ecommerce sites, based on 26 different criteria.
They also surveyed 500 consumers across the region to uncover insights into current buying behaviors and trends, payment preferences, and other factors that may affect payment experiences.
Their analysis showed that 95% of checkout pages had 5 or more basic errors causing unnecessary friction and lost sales, and all of these errors are preventable as well.
During her seminar, she explained that the optimization of the payment flow of a site can be considered in 3 key areas: the design of the payment form, mobile optimization and localization.
1. Make the UX on a payment form as transparent as possible
Designing a website’s payment form can either bring customers to the point of sale or push them away. Almost a quarter of Stripe’s research customers abandoned their carts from endless checkout forms.
Therefore, it is essential that the user experience of the checkout process is as smooth as possible. Buyers want a quick click-to-pay to be the last step in their buying journey, and don’t want to go through a checkout form over and over to correct basic errors.
Therefore, displaying a real-time error message indicating that a customer’s card was invalid or expired when the card number was entered could increase dunning rates up to 3.5%. Even small changes like the error message itself saying “Your card does not have enough funds” or “Your card does not have enough funds, try another card”, makes a difference.
To add, supporting autocomplete for details like a customer’s address can increase conversion rates by 0.8%.
“And that translates into more money for you and better customer satisfaction,” added Sarita.
She summarized this section with some best practices that online sellers should note when designing high performing checkouts:
- Highlight payment errors in real time with visual clues like a green check mark or red exclamation point;
- Use descriptive and specific error messages to clearly identify the error;
- Accept autofill information stored in browsers so customers don’t have to re-enter their details;
- Automatically display an icon for the card brand after entering the card number.
“These individual differences may seem quite small, but can add up quite quickly, especially for e-commerce companies with high transaction volumes or medium order sizes,” Sarita encouraged.
2. Make it fit on smaller screens
With over 50% of e-commerce traffic coming from smartphones, the need for an optimized and seamless mobile experience is of the utmost importance.
“If your page is not adaptable to a smaller screen, there is a greater chance that people visiting your site from their phones visiting your site will not make a purchase from you,” Sarita warned.
One of the ways to seamlessly manage mobile purchases is to display a numeric keypad that allows shoppers to add their card information from their phone.
In addition, support for global and regional e-wallets such as GrabPay and Alipay can improve the overall mobile shopping experience.
E-wallets give businesses the ability to deliver a fast one-click checkout experience, which is on average 3 times faster than forcing buyers to manually enter their payment information, Sarita said.
Before moving on to her last point, she once again listed the points for optimizing a mobile buyer’s experience:
- Test a mobile version of your site on the most common devices in your target market;
- Offer e-wallet payments and guest payment experience;
- Display a numeric keypad.
3. Locate the viewing experience
Given the diversity of the APAC region, delivering a localized payment experience is essential.
“At the bare minimum, you should display a translated checkout page based on the buyer’s country, and you should also display the items in their local currency,” Sarita explained. Thus, customers avoid the hassle of converting numbers into their currency themselves, making the shopping experience easier.
Additionally, having a thorough understanding of customer preferences and local payment methods is especially important in a region. Indeed, 46% of online payments are made with electronic wallets, against only 30% with cards.
Sarita pointed out that 13% of consumers surveyed by Stripe said they abandoned a purchase in the past year because their preferred payment method was not available. “So remember that the preferred payment methods, especially cardless payment methods, vary depending on the country you are selling to,” she said.
For example, the popular cardless payment method in Singapore is GrabPay and PayNow. While in a country like Australia, buy now, pay later (BNPL) options such as Afterpay and Zip Pay are in high demand. Not automatically showing these payment methods can be a missed opportunity for businesses.
“In one study, we piloted to run the most popular Dutch payment method, iDeal, for a number of Hong Kong companies that sold in the Netherlands. After activating iDeal, these businesses saw a 79% increase in payment volumes, including minimal cannibalization of their existing card volume, ”said Sarita.
Again, she concluded this section with the main takeaways about localizing an ecommerce platform based on a customer’s region:
- Identify the countries you want to sell to and make sure you locate the checkout page by translating the page and displaying its local currency;
- Dynamically display the right payment methods based on where your customers are or what device they’re using;
- Edit the payment fields to capture the correct information for each country.
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It’s no secret that online business in the world is booming, and it’s no different in APAC. Sarita said that by 2023, online sales in APAC are expected to be higher than the rest of the world combined.
61% of APAC consumers have increased their online purchases in the past year, at least ⅓ double.
So, for online businesses to get a piece of this pie, it would be worth investing in these small and effective solutions to further improve their customer conversion rates.
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Image Credit Featured: Sarita Singh, Head of Regional Growth at Stripe
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