Blog series – Klarna & The Pixel: we’ve invited payment solution provider Klarna to take us through their top tips to Get Online Right for Magento merchants.
The online channel offers a level of convenience completely different to that of high street shopping, but consumer expectations are high. In a world where loyalty is decreasing, and consumers demand to shop how and when it's most convenient to them, retailers must ensure that they are providing a top tier user experience. If they don’t, they risk losing out to competitors.
A key aspect of providing a good online experience relies on offering an optimised, user-friendly checkout. And this includes alternative payment options to the usual cards - but in what ways can more payment options benefit retailers?
1. Nudge customers through the path to purchase
A recent study we conducted found that shoppers are often influenced by powerful emotional drivers such as excitement, impulsiveness and anxiety. Our findings revealed that two thirds (68%) of millennials reported feeling excitement when adding items to their e-basket. These positives, however, are countered by lows of anxiety and guilt, with 52% of millennials saying they worry they can’t afford the purchase during checkout.
'20% of millennials we surveyed said they would feel less guilty if they were offered deferred payment options'
But a ‘try now pay later’ payment service is a helpful way to assuage this guilt, as customers only part with money once they know what items they want to keep. In fact, 20% of millennials we surveyed said they would feel less guilty if they were offered deferred payment options.
2. Boost purchasing power by allowing customers to pay over time
Many shoppers looking to buy big ticket items - whether that’s luxury goods, electricals or home & garden purchases - will typically have to save up for several months or even years. But checkout options which let shoppers pay for an item over time provide flexibility by boosting purchasing power. Consumers benefit from being able to get items straight away, and pay them back in affordable chunks - which is likely to lead to an increase in sales. It’s vital that merchants offer these choices at the checkout, so consumers can be reassured a transaction is achievable.
3. Help counteract dropped baskets
Findings revealed that 68% of UK shoppers have abandoned a basket online. While abandoned baskets can occur for a multitude of different reasons, there’s still significant improvements that can be made to increase the conversion rate.
'49% said they had abandoned their basket because the checkout was too long'
In our research, 35% of shoppers said that an easier payment processes would make them less likely to abandon their basket, while almost half (49%) said they had abandoned their basket because the checkout was too long - so make sure your checkout is as pain-free as possible, and get rid of any unnecessary extra steps.
At a time when shoppers can choose from hundreds of retailers at the click of a button, it’s more important than ever that retailers take heed of their customers’ wants, needs, and emotions. By offering a host of flexible, smooth and simple payment options at checkout, retailers will not only increase their conversion rates, but also help establish long-term loyalty.