Required registration procedures figures highly as reasons why shoppers ‘drop out’ of online purchases
Required registration procedures figures highly as reasons why shoppers ‘drop out’ of online purchases
Independent research into customer behaviour in online and mobile checkouts has found UK retailers are losing £2.4 billion in total revenue lost by users exiting at the checkout as a result of an inefficient purchasing process.
The research, carried out by customer data platform QuBit and commissioned by Mobile Money Network (MMN), analysed 18,000 shopper journeys to investigate where and why they ‘drop out’. It also found £470 million of the total amount of revenue currently being lost is due to the required registration process.
The research concludes that this is the number one issue for buyers. They are required to go through lengthy account creations in each digital retail environment with multiple retailers before they can complete a purchase.
The report highlights that the point of transaction is due a major upgrade. And retailers need to reduce the amount of revenue lost due to making it too difficult for consumers to buy from them, according to John Milliken, MMN managing director.
“We strongly believe that mobile is not a discrete channel and used properly, it is an enabler to improve sales conversion in all channels,” he said.
Retail mobile innovation
Retailers including Carphone Warehouse, Thorntons and Liam Gallagher’s fashion brand Pretty Green have already integrated MMN’s instant mobile checkout ‘Simply Tap’ at various consumer touchpoints including instore posters, e-commerce and m-commerce sites, catalogues, outdoor poster advertising, print advertising and on social media sites such as Facebook.
“The goal is to make it as easy and as quick as possible for consumers to buy from retailers wherever they see a product,” Milliken added. “However, the majority of retailers don’t give consumers an opportunity to instantly buy, e.g. on social media or from an advert, and still require shoppers to go through lengthy, complicated registration and payment processes when they do have something ‘in their basket’. This is akin to standing in a shop queue and not being allowed to go to the cashier without giving up your email address and setting up a password.”
MMN is gathering industry leaders in the retail and mobile space together for an event on 25 April 2012 to explore how mobile technologies offer retailers an opportunity to innovate, seize new ground and drive revenues. Speakers include former Marks & Spencer boss and MMN chairman Sir Stuart Rose and chief executive of Visa Europe, Peter Ayliffe, which recently bought a 15% stake in MMN.
