Retailers failing on customer payment choices
Despite a growing focus on customer experience, online retailers are still falling short when it comes to the final stage of the online customer journey. Today, PPRO announces research findings that reveal over half of UK respondents (58%) would stop a purchase if the checkout process is complicated. These findings highlight the increasing need for retailers to address consumers’ payment preferences.
Millennials (those born 1980-1993) are the least tolerant of complicated checkout processes, with 67% agreeing they would be quick to abandon their purchases. And it’s not just complicated checkouts that are scuppering retailers’ chances of a successful sale. 44% of UK consumers state they would stop a purchase if their favourite payment method wasn’t available.
When asked about speed and convenience, 51% of Generation Z respondents (those born 1994-2001) agreed they would avoid using retailers that require entering payment credentials every time. Older generations show a higher tolerance, with only 30% of Baby Boomers (born 1946-1964) and 25% of the Silent Generation (born before 1946) expressing a preference to use merchants that offer one-click payments.
While convenience is clearly essential to consumers; retailers also need to accommodate the growing consumer awareness of information security. In fact, 59% of shoppers view the security of their data and money as most important when choosing a payment method.
On the topic of trust, 30% of UK consumers admitted that they rarely adopt new payment methods and prefer to stay with the payment methods they know. This reveals a considerable amount of UK consumers aren’t prepared to veer away from their preferred payment methods when shopping online. Retailers need to realise the importance of allowing their customers to make a purchase with their preferred payment methods. Or they run the risk of not only missing out on that single transaction but also losing a potentially loyal customer.
“With over 450 significant local payment methods in use across the globe, it can be a challenge for retailers to understand which ones to offer their customers. However, this research shows how crucial it is to offer the payment methods the customer prefers. It proves that the payment methods you offer can make a break or a sale. Currently, 91% of UK consumers have used debit and credit cards for online purchases. 89% also confidently use PayPal or have used it in the past. 31% are confident in using mobile wallets, such as Apple Pay and Google Pay, and the use of bank transfers has doubled in the last 3 years. There’s a surprising range merchants must consider at the payment page to improve conversion rates,” comments James Booth, VP Head of Partnerships, EMEA at PPRO.
“Retailers need to be aware that a slick user experience must extend to the point of purchase. A shop may have a personalised and easy-to-navigate website, but a shopper who isn’t satisfied with the payment methods available at the final stage will quickly move on to a competitor,” adds Booth.