Many businesses have historically struggled with online and mobile payments. The difficulty with onboarding new payments technology has thus made shopper conversion between the cart and the checkout a unique business task to master. PYMNTS reported that its latest Checkout Conversion Index showed a 3.1 percent decrease of mobile conversion rates from the previous quarter.
The CCI is done in partnership with BlueSnap, the CEO of which has some insight as to why this might be. Ralph Dangelmaier explained to PYMNTS that many merchants, regardless of size, have had trouble with grasping the concept or the importance of online and mobile conversion rates.
Getting more specific, Dangelmaier said there are several specific areas that are holding businesses back from converting as many shoppers as possible.
One of these problem areas is the number of payment options. Fewer than 50 percent of merchants analyzed in the CCI offered local payment types, which would be those specific to that particular area.
Kissmetrics agreed with that point, saying that offering a variety of different payment options is crucial, and even more important is knowing which ones to make available. Most consumers will expect that they can choose between different payment types. When there is only one option, a consumer is more likely to abandon their cart, and even more so if that one option is not the one he or she prefers to use.
Credit unions can assist in efforts like this. As a credit union that potentially works with the same people that shop at your business members' stores, you probably know the payment methods that some of the local population frequently use. Inform your business members of these popular payment methods so they can offer the best payment options for their audience.
Education is key
As Dangelmaier pointed out, the problems many merchants experience with low conversion rates could simply be tied to a lack of understanding on the businesses' part about the online checkout process. It's important for merchants to understand what the online payment experience is like for the consumer.
Simple things that businesses might not think of naturally can make a big difference. For instance, asking for the shipping address before the billing information shows consumers that the business cares about their happiness and their order more than they care about their money, Kissmetrics pointed out.
Another is showing them how many more steps there are until the order is complete. Without knowing this information, it can feel to the consumer that the process will never end. Forbes reported that around 21 percent of consumers that quit before completing the order did so because the process was too long. They might not have had this opinion if they knew only one or two more steps were left before they were done.
As a credit union working with merchants, you are in a position to provide your business members with the education they need to make their online checkout experience better, thus increasing their conversion rates. You know that credit unions value community and collaboration. Demonstrate this ideal for your business members by showing them you care about their success.