The Secrets of a Seamless Checkout

Sponsored by

DON DAVISMODERATOREditor-in-Chief Internet Retailer

DONALD YEEVice President Boston Retail Partners

JOHN COONEYUS Business Development Manager PCA Predict

The Secrets of a Seamless Checkout:From Order to Arrival

Comprehensive Retail Consulting

2©2015 Boston Retail Partners. All rights reserved

The Secrets of a Seamless CheckoutNovember 3, 2015



Agenda

About Boston Retail Partners $izing the Opportunity Friction Points Impacting a Seamless Checkout Best Practices – Decrease Cart Abandonment Key Takeaways



About Boston Retail Partners



Retail experts with retail backgrounds

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CRM/Loyalty, Customer Engagement, E-Commerce, Order Management, Merchandising and Supply Chain solutions

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No exclusive partnerships or alliances with software or hardware providers

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About Boston Retail Partners



Retail Experience

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2015 E-Commerce$izing the Opportunity


8©2015 Boston Retail Partners. All rights reservedSource:eMarketer, August 2015

$349.1B

14.4%(year over year)

2015 Projected E-Commerce Sales



$79.4B

13.9%(year over year)

22.7%(9-wks)

Source: eMarketer, August 2015

2015 Projected E-Commerce Holiday Sales – November & December



Key Holiday Online Spending Days



68.5%

Average Online Shopping Cart Abandonment Rate

Source: Baymard Institute: 31 Cart Abandonment Rate Statistic, May 8, 2015

“With four times as many shoppers expected to buy online during this year’s holiday period than in 2014, it’s imperative that retailers are delivering a seamless customer experience from checkout right through to delivery.”

- Emma Stone, COO of PCA Predict



Holiday Sales - $181.5 Billion Opportunity

$265 B$79.4 B

$181.5 B

+ =31.5% 68.5% 100%



Revenue Loss Due to Cart AbandonmentAverage monthly number of checkout visits X

.685 (average abandonment rate) X Average Order Value = Monthly $ loss due to shopping cart abandonment.

20,000 monthly checkout visits X .685 (avg. abandonment rate) X $100 AOV =$1,370,000 monthly loss

Or$16,440,000 annual loss

Example



Friction Points Impacting a Seamless Checkout



Reasons for Cart Abandonment – Shipping MattersShipping cost made the total purchase cost more than expected

56%Order value wasn’t large enough to qualify for free shipping

Shipping & handling costs were listed too late during checkout process

34%Shipping options offered didn’t meet by requirements

28%

No guaranteed or estimated delivery date

Estimated shipping time was too long for amount to be paid

26%

Source: UPS Pulse on the Online Shopper, June 2015

45%

18%



Reasons for Cart AbandonmentJust browsing- Save the cart for later- Total cost comparisons

43 -44%

InventoryItem was out-of-stock

Create an accountMust register to purchase27%

Website- Crashed or too slow- Navigation too complicated

24 - 25%

Checkout process too long and/or confusing

Preferred payment option was not offered24%

Source: UPS Pulse on the Online Shopper, June 2015;WorldPay – Statista 2013

42%

23%

Payment security concerns

17%Return policy not stated clearly

16%



Best Practices – Decrease Cart AbandonmentThe Don’ts & Do’s



Best Practices: The Don’tsDON’TForce customers to register/create an account• Best to offer guest checkout

DON’THide shipping cost• Best to provide means to

estimate shipping cost early

DON’TOffer promo/coupon code entry form unnecessarily• Customers seeing a promo code form during checkout will likely leave the

site to search for code, and abandon cart if code is not found or faulty

DON’TAsk for billing information• Prior to shipping information

and method

DON’TBe subtle w/call-to-action buttons• Add-to-cart & checkout buttons• Boost size & alter colors to standout

DON’TBury return/exchange policy • Setup an affixed or pop-up

window

DON’TGive up on shoppers who abandoned carts• Send personalized,

retargeted email reminders

• Use Google ReTargeter or AdRoll to display ads to shoppers as they visit other sites online



Best Practices: The Do’s – Remarketing CampaignSend Personalized Emails• Send personalized email reminders to

shoppers who did not complete their purchase

• Email should include:o Pictures of the item they selectedo Reviews or testimonials from other shopperso Guarantee and refund policy informationo Strong call to action to get them back to your

site• Timing the emails:

o 1st email – should go out within 24 hourso 2nd email – send within 2 dayso 3rd email – send within 1 week



Best Practices: The Do’s – Remarketing CampaignUse Google Remarketing ReTargeter or AdRoll to return shoppers to your site• Google’s dynamic remarketing generates

highly customized display advertisements using cookie-technology. This allows online retailers to serve ads based on the nature of a viewer’s prior website engagement, thereby delivering ads that have the greatest odds of returning viewer to your web site for conversion



Best Practices: The Do’s – Product PageHigh Quality & Interactive Product Images• Provide clear thumbnails of the actual item • See item in preferred colors or styles, browsing

alternative views, and zoom functionality• Provide video product content

Product Detail Information• Description• Features • Specifications• Benefits• Cleaning Instructions



Best Practices: The Do’s – Product PageCustomer Testimonials & Reviews• Shoppers love to hear other customers’

feedback

Inventory Availability• Always include item inventory on the product

page• Display low inventory alerts



54%

of retailers rated customer reviews as the most effective customer engagement tool, however,

39% of retailers do not currently offer them.

UPS Consumer Survey*: 73% found product reviews to be influential on a retailer’s website.

* UPS Pulse on the Online Shopper, June 2015



Best Practices: The Do’s – ShippingOffer Free Shipping• Unconditional or free shipping w/minimum purchase• Shout it out; clearly visibleClarify Shipping Cost Upfront• Easy to estimate shipping cost prior to checkoutPost Expected Delivery Times• State when order will be shipped and expected deliveryVerify Shipping Address• Saves money and timeOrder Status• Order tracking status and notifications



Best Practices: Shipping Options

• 74% of retailers offer free shipping with a minimum purchase

• 32% offer free shipping during a specific time frame

Free shipping with minimum purchase $ amount

Free shipping during a specific timeframe (i.e. holiday)

Other

Free shipping for very best customers

Free shipping for everyone

Free shipping with membership (i.e. Amazon Prime)

74%

32%

24%

21%

11%

8%



Best Practices: The Do’s – Address Verification4.7% of customers make errors when filling out shipping forms*

* Source: EasyPost – The Cost of Bad Addresses, July 15, 2015

Most Common Address ErrorsBased on shipping errors reported *

*



Best Practices: The Do’s – Address Verification

Bad addresses are costly!• Packaging• Postage• Labor • Losing the sale • Losing the actual product• Losing the customer

The Solution• Address Verification Software

• Intelligent address search technology• Search and list addresses as you type



73%

of retailers indicated that order tracking status & notifications are important features to offer

37%*18-34 year olds want to receive delivery confirmation by SMS

* PCA Predict Consumer Report, October 2015



Best Practices: The Do’s – Pick Up In-StoreUnified Commerce – Buy Online, Pick Up In-Store• 24% retailers implemented• 17% retailers implemented and

needs improvement• 37% to be implemented within 3

years



Best Practices: The Do’s – Shop w/ConfidenceOffer Price Guarantees• Clearly state lowest price match policy

Highlight Sales and Discounts• Create sections for specially priced

items• Items on sale• Publish promo/coupon codes• Clearance

Call Center Contact Info & Hours• Clearly visible on every page• Click-to-call phone # (smartphones)

Integrate Live Chat• Assist shoppers on product info and

guide them through checkout

Social Sharing• Drive site traffic with ‘share buttons’ to

social networks on product pages

Security Logos Everywhere• Assurance of payment and personal

information• Shop with confidence• Safe shopping guarantee



Best Practices: The Do’s – Shopping CartEasy to navigate shopping cart• View, edit and update cart; continue

shopping, & checkoutSave the Cart• Give shoppers the opportunity to come

back later to resume shopping



33%

of retailers indicated that improving the user experience/navigation are a top priority



Best Practices: The Do’s – Checkout ProcessThree (3) Easy Ways to Start the Checkout Process

1. Sign-in to Your Accounta. Emailb. Password

2. Create an Accounta. Emailb. Passwordc. Confirm password

3. Checkout as a Guesta. Make available at the beginning of

the checkout process



Best Practices: The Do’s – Checkout ProcessUse a Progress Indicator• Display how many steps to complete checkout

1. Shipping information2. Payment information3. Review and complete order

Streamline Checkout Process• Eliminate links and exit points• Simple and quickRequest Essential Information• Less info asked, the more likely shoppers will buy• 1/3* of shoppers would share their phone # if

retailers made it clear how it would be used

*PCA Predict Consumer Report, October 2015



Best Practices: The Do’s – Checkout ProcessMultiple Payment Options• Provide flexibility in paying options;

PayPal is a must-have



Variety of Payment Options*• Currently, PayPal is the top accepted payment type online• Retailers plan to support Apple Pay (63%) and/or Google Wallet (48%) in the next

few years



Key Takeaways



Key Takeaways• Know your numbers & adjust your benchmarks

o Shopping cart abandonment rate o Conversion rateo Re-forecast your holiday sales (November & December)

• Shipping Matterso Cost, estimated delivery date, address verification, order tracking, in-store pick up, etc.

• Shop with Confidenceo Comprehensive product information, interactive product images, customer reviews, up-to-date inventory,

safe shopping guaranteed, easy to navigate, cart edit, save the cart, customer service, etc.

• Streamline the Checkout Processo Checkout as a guest, progress indicators, multiple payment options, etc.

• Remarketing Campaignso Personalized emails o Google Ad ReTargeter or AdRoll



E-commerce site offeringsFAQs

Order history

Order status

Order tracking status/notifications

Shopper account maintenance (update profile/contact/payment info)

User reviews

Suggestive selling

Product comparisons

Loyalty status (points, rewards, history, etc.)

Browsing history

Wish list

83%

76%

76%

73%

63%

61%

56%

46%

44%

41%

39%


40©2015 Boston Retail Partners. All rights reservedwww.bostonretailpartners.com

Donald YeeVice President

Boston Retail [email protected]

http://www.bostonretailpartners.com/

Visit www.pcapredict.com to try the demo

http://www.pcapredict.com/

