Optimizing Payments for the Holiday Season

OPTIMIZING PAYMENTS FOR THE

HOLIDAY SEASON

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MEET THE PRESENTERS

PHILLIP JACKSON

Sr. Interactive Programmer

Something Digital

MICKEY WINTER

Creative Director

Something Digital

JON HIGBY

Sr. Solutions Engineer

PayPal

HOLLY DAVIS

Partner Marketing Manager

Magento/eBay Inc.

AGENDA

Overview Form Optimization Traffic Considerations Soludos Case Study Get Prepared Conclusion Q&A

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3 TAKE AWAYS

• Optimize the User Experience

• Provide Multiple Payment Methods

• Make it Easy

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OVERVIEW

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OBVIOUS WINS 6

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• UX review • One time login • Limit clicks to convert • Product diversity • Upsells / crossells

PAYMENTS 7

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• Choice • Security • Repeat customers

FORM OPTIMIZATION

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MOBILE FIRST 9

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*http://www.statista.com/statistics/249855/mobile-retail-commerce-revenue-in-the-united-states/

2x mobile revenue is expected to

double by 2017*

Design with the mobile experience in mind from the beginning, not as an afterthought.

LIMIT STEPS 10

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5-6 steps avg.*

It’s not the number of steps but, what is asked of the customer during those steps and how you ask them.

* youtube.com/watch?v=6wwKZDzJEnM

SHOW ONLY NECESSARY FIELDS 11

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Provide additional information to help relieve privacy concerns and indicate or hide what is not necessary.

61% of sites ask for a phone

number without saying why*


DON’T ASK TWICE 12

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Pre-fill information for returning customers and provide the ability to use the same info from step to step. 50%

of sites ask for the same info during checkout*


STACK FIELDS & LABELS 13

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Inline labels cause interaction issues that lead to errors and are not ADA compliant.

PROVIDE GUEST CHECKOUT 14

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Prominently place guest checkout and allow for customers to create an account after they complete their order.

60% of customers overlook the

guest checkout option*

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http://baymard.com/blog/visually-reinforce-sensitive-fields

REINFORCE SECURITY

Encapsulate credit card fields and provide visual cues to help provide a sense of security.

89% of sites do not encapsulate credit card

fields*

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MAKE ERRORS IMMEDIATE & OBVIOUS

Place error messages where they occur in real time and provide an example of the correct format.

TRAFFIC

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QUICK WINS 18

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• Perform load analysis • Add additional web servers • Pace marketing campaigns • Monitoring tools

OTHER CONSIDERATIONS 19

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• Optimize your theme • Improve UX • Inventory planning • Plan early, start early

PERFORMANCE 20

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• Monitoring • Auditing • CDN

DOWNTIME 21

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• Failover • Backup 3rd party service providers (payment, shipping)

PAYMENT OPTIONS

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http://baymard.com/blog/payment-method-selection

ADVANTAGES

• Redundancy • Preference • Fallback

Accepting a wide range of payment methods is a good idea to ensure that all users actually have a way of sending money your way.

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TYPES OF PAYMENTS

• On-site credit card • 3rd-party checkout • Invoice & wire transfer • Gift cards, coupons, credits • Financing • By phone or check • Using multiple cards or payment methods

TOP 3rd PARTY PAYMENT OPTIONS 25

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Multiple payment methods introduces complexity, and must be thoughtfully designed to avoid confusion and choice paralysis.*

UX CONSIDERATIONS

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CASE STUDY

UX ENHANCEMENTS & MOBILE FIRST 28

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Before After

200% traffic

increase

PAYPAL INTEGRATION 29

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451% revenue increase

BUTTON PLACEMENT 30

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20% conversion

increase

GET PREPARED

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PAYPAL CONNECTS CONSUMERS AND MERCHANTS

Agnostic Payment Enabled Innovative Technology Partner Trusted Digital Wallet

•  World Class Brand

•  165M Global Customers

•  #1 in Security

•  Fast, easy online/mobile payments

•  Customer First

•  Braintree platform enabled

•  Credit Card Processing

•  Freedom of payment choice:

Accept Paypal, Credit Cards,

Bitcoin, Apple Pay and emerging

options

•  Merchant Centric Solutions

•  Technology Leader

•  White Label/Retailer Branded

Mobile App

•  Innovative Solutions

CONVERSION RATE 33

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*Source: PayPal Q1 2015 Fast Facts **Ipsos Public Affairs poll conducted on behalf of PayPal, July 2011 ***Source: July 2011 Ipsos Public Affairs poll conducted on behalf of PayPal, 8 in 10 merchants (83%) have noticed a bump in sales since adding PayPal’s Express Checkout service, while just 17% say they haven’t noticed an increase.

Improved Checkout Conversion Rate ***

PayPal-enabled merchants { transactions

Non-PayPal transactions

79.1%

46.4%

} 70% 16% Lift in Spend**

165M Active PayPal

users*

PAYPAL EXPRESS CHECKOUT: IN-CONTEXT EXPERIENCE

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*Source: PayPal, Internal data, 2015. Based on PayPal pilot results, large merchants saw that in-context experience delivered a conversion life of up to .69% (69bps) over the full-page experience, Q4 ‘14-Q1 ‘15. Results achieved by 5 Large Enterprise merchants in North America. For complete details on pilot methodology and statistical results see the pilot results.

69 BPS Conversion

increase over

redirect*

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*Source: PayPal, Internal data, 2015. Based on PayPal pilot results, large merchants saw that in-context experience delivered a conversion life of up to .69% (69bps) over the full-page experience, Q4 ‘14-Q1 ‘15. Results achieved by 5 Large Enterprise merchants in North America. For complete details on pilot methodology and statistical results see the pilot results.

Option to stay

logged in to PayPal

PAYPAL EXPRESS CHECKOUT: ONE TOUCH

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PAYPAL EXPRESS CHECKOUT: ONE TOUCH

Merchant PayPal PayPal Merchant

1 2 3 PayPal: Login

(skipped) Pay with PayPal Confirmation PayPal: Review

Purchase


1 2 3 4 PayPal: Login

(consumer opts-in) Pay with PayPal Confirmation PayPal: Review

Purchase

Every Purchase After: Login Skipped at EVERY Merchant (that is one touch capable)

PAYPAL: PROOF MOBILE IS TAKING OFF (2014) 37

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3 Payment Volume: Value of payments, net of payment reversals, successfully completed through our Payments Platform, excluding transactions processed through our gateway products. Our Payments Platform includes PayPal, PayPal Credit, Venmo and Braintree products. *Source: PayPal Q1 2015 Fact Sheet

1B Number of

Mobile Payments

2014 Full Year Results

$46B Mobile

Payment Volume

Up 68% YoY

52% International

Revenue

$8.03B Revenue

Up 19% YoY

$235B Payment Volume3

Up 26% YoY

4B Number of Payments

PAYPAL EXPRESS CHECKOUT: ONE TOUCH (MOBILE)

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2. PayPal Login

Browser

1. Pay with PayPal

Browser

4. Confirmation

Browser

3. PayPal Review

Browser

PAYPAL EXPRESS CHECKOUT: ONE TOUCH (MOBILE)

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PayPal Login

Browser

1. Pay with PayPal

Browser

3. Confirmation

Browser

2. PayPal Review

Browser

PayPal Login Bypassed

INSTALL THE FREE PAYPAL EXTENSION AND GET:

IN-CONTEXT AND ONE TOUCH

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Just search the Magento Connect store for: “PayPal One Touch”

Note: In-Context and One Touch are new experiences on top of PayPal Express Checkout. If you haven’t already - you will need to configure your Magento store to enable PayPal Express Checkout.

VAULTING – SECURELY STORE YOUR CUSTOMERS’ DATA

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Store data without the need for customers to re-enter their information.

Merchants can choose to store credit card, customer details, billing address, and shipping address in the Vault when creating a transaction.

! we support unlimited custom fields at the customer and transaction levels.

Enable repeat customers to easily check out with a single touch.

Minimal-hassle PCI compliance - no raw credit card data passes through merchants’ servers.

CONCLUSION

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3 TAKE AWAYS

• Optimize the User Experience

• Provide Multiple Payment Methods

• Make it Easy

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Q&A

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CONTACT US 45

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Jon Klonsky [email protected]

646.561.6600

58 W. 40th St. 7th Fl New York, NY 10018

SomethingDigital.com

Rachel Garneau [email protected]

408.307.8384

10441 Jefferson Blvd. Suite 200 Culver City, CA 90232

PayPal.com

ABOUT SD 46

•  An NYC-based agency that started in 1999

•  A full-service solutions boutique, capable of bringing a vision from concept to launch—and beyond

•  A team and a set of skills that help our clients achieve great things.

•  A unique place, where people and their projects excel, and everyone gets invited to dinner

•  Magento Gold Solutions Partner

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ABOUT PAYPAL 47

•  Longevity: Forefront of digital payments since 1998

•  Global Footprint:

•  203 markets, 100+ currencies

•  52% of revenue is international

•  Trust

•  168M active consumers in Q1 2015 (up 11% YoY)

•  4 billion payments in 2014 (1 billion were mobile)

•  $235B processed in 2014 (up 26% YoY)

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