When a consumer joins a queue to purchase in a shop, they rarely walk out without completing the transaction. Why, then, do so many online shoppers drop out before purchase? Digital Marketing Creative Director Andy O’Brien looks at the issues.
The phenomenal rise of broadband has seen many changes in online behaviour, not least in the online retail market. Those organisations that can, are making their products and services available through the Web, and who can blame them? It’s easy to sell online isn’t it?
It’s particularly easy when so many people are turning to the Internet as their preferred shopping channel. On average online shoppers make six to seven purchases a month (source: AC Neilsen), and the world’s most prolific online shoppers are in the UK and Germany, with two thirds of users making a purchase in the past month.
However, now that the idea of buying goods online has become commonplace, why do so many people get to the point of selecting goods in a virtual shopping trolley only to abandon the transaction at the last moment? What do retailers need to consider to create a trustworthy shopping environment that facilitates purchase? Online retailers need to think about what is happening in a consumer’s mind immediately prior to purchase: when a consumer approaches the checkout they are looking for reasons not to buy; can they justify their purchase? Can they get it cheaper elsewhere? Is this really the right brand?
The best online shops are built to address this issue – careful attention is paid to enveloping browsers in the brand, to showcasing the product, to promoting the latest deal…so what happens when users approach the checkout? The worst present a complicated, unattractive form that offers any number of hoops through which the user is expected to jump. The branding is gone, the personality is subjugated in favour of process and the experience that they warmed to in the first place goes cold.
PERSONAL SHOPPER
The answer needs to encompass copy, design and the information architecture. The impact these three will have on the user process will mean a significant uplift in sales and, if well executed, set the site apart from (and above) its competition.
Personalisation makes online retail more relevant to individuals; many travel and airline websites already use a login for users which ‘holds’ information such as address details, personal preferences (see www.ba.com), shopping history and even credit card information that does not have to be re-keyed with each purchase (see www.amazon.com): a time-saving device that also eliminates user errors.
Personalisation enables companies to better understand their customers’ interests and preferences. Giving users full access to their account history means transparency; and that means honesty. Also, it allows retailers to tailor offers in line with buying patterns and possible preferences based on peer selection.
In addition, the latest web technologies allow for features like dynamic screensavers which can be created with an XML or RSS feed that changes based on the implicit preferences of a user’s purchasing and interest history. This push technology means that when a user logs on they would not have to go to the website, instead the information about relevant new offers and products will be updated automatically on their screens.
HISTORY REPEATING
Using a customer’s purchase history is a great way to make a cross-sell or upsell, as they can be recommended complementary or new items to buy based on past preferences or those based on similar purchase patterns of other buyers. For example, customers who have bought X (like you) have also bought Y. Additionally users can post product reviews which can influence the purchase behaviour of others.
Customer service on the web has become an important feature in the purchase cycle. General questions and concerns are usually addressed in FAQs. However, other methods of responding to enquiries are being explored: live chat shopping assistants (particularly used on fashion websites), click-to-callback functionality (for example: www.clubmed.co.uk) and dynamically generated knowledge bases are a more comprehensive way of dealing with customer issues.
THE RULES OF ENGAGEMENT
With the advent of Web 2.0, business rules can be set. For example, when users spend too much time at the shopping trolley level, this can trigger assistance to help them complete the purchase. Rewarding online customers with loyalty schemes and value add VIP offers – the online equivalent of offline store cards - can also reduce abandonment, and increase retention and lifetime spend.
Navigation should be intuitive for a user. Implementing clear and intuitive navigation and search allows users to locate the products they want more readily and quickly. The purchasing process can be streamlined to make it simpler to use. For example, if a user knows the reference of the product they want then they can take advantage of a one-step ordering process.
Other issues such as shipping charges do continue to deter buyers, although if outlined early enough in the shopping cycle consumers who continue with the purchase are less likely to abandon as a result.
COMPLETING THE PROCESS
If a consumer has abandoned a purchase it is vital to know exactly where in the process it happened. If an email address is captured early in the process, then an event-triggered communication can be sent to the prospective purchaser not only with copy that refers to their abandoned shopping trolley but also with an incentive (a discount or promotional offer) to bring that sale to completion. Or, perhaps, an email promotion with a complementary offer, creating a prime cross-selling opportunity. ‘An email promoting free shipping will entice many shoppers to complete the purchase without hesitation.’ (Source: Forrester.)
Removing a step in the buying process - creating fewer pages - will mean consumers are be less likely to abandon, and using cookies to ‘remember’ a customer and their details makes it so much simpler and quicker for them to complete their purchase.
Retailers should seriously consider how to improve their online presence beyond just the web catalogue and shopping basket so that customers have an attractive experience, one that offers more control than they would get in store, and in return they will benefit from being able to build a detailed profile of their consumers and a deeper, more profitable relationship.
Andy O’Brien
Creative Director - Digital Marketing
AMAZE
www.amaze.com
aobrien@amaze.com
INFORMATION
To find out how we can help your business, email sales@amaze.com or call Jenny Chapman on +44 (0)870 240 1700.
