The 2008 holiday shopping season was one of the most challenging for retailers in decades according to MasterCard’s SpendingPulse report on national retail and service sales. Online spending, however, showed relative strength declining only 2.3% compared with a total retail sales decline of 5.5%-8% from 2007. This resiliency and relative health is an indicator of the ever-growing importance of e-commerce. The financial crisis has made it even more crucial to target the online store.
To fully take advantage of online shopping, it is important for merchants to optimize their web experience to overcome customer barriers. Shopper hesitancy and shopping cart abandonment remain challenges as overall conversion on merchant sites remains low, averaging 2%-3% depending on the industry. Merchants with the highest conversion rates are those who go beyond using traditional Web analytics data to truly understand their customers’ needs, perceptions and concerns.
Jupiter Research conducted a study, commissioned by eBillme in late 2007, evaluating consumers’ concerns and considerations when selecting a payment method at the checkout and identified key customer barriers. This study found that buyer protection is the most important consideration for consumers when selecting online payment options. Fear of internet scams and a perceived lack of security when entering personal and/or financial information online continues to pervade the customer experience. Additionally, though fraud is a prime concern, over 60% of credit and debit card users are confused as to their maximum liability coverage and could be caught unawares. As consumers become more experienced, they are likely to align with options that do more to protect them.
Merchants have an opportunity to provide the security and confidence that online consumers seek by embracing options that promote transparency and trust. According to the survey, more than three quarters of consumers have stated that they would be willing to adapt to changes in the online payment process if it resulted in enhanced security. Alternative online payments, such as paying cash, that offer security and protection are growing in popularity in response to evolving buyer preferences and are attracting new shopper demographics.
We present an online payment method via online banking that protects both merchants and shoppers, addressing the consumer concerns and barriers in a way that converts hesitant shoppers into confident spenders with immediate results in new customer acquisition and increased order values.
Download the complete version in .PDF: Increase Conversion with eBillme.
