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How to optimize your conversion rate

Hero shoppingcart Hero shoppingcart Placehoder
2 DECEMBER 2020

5 min read

60% of online purchases are abandoned before finalizing the payment stage meaning that there are major losses to be saved by enabling customers to finalize the purchase. By doing so you can increase your conversion rate. But how should you proceed? We have gathered five tips for you.

As a first step it can be valuable to know your current conversion rate in order to track your development. Your conversion rate indicates how many of your online visitors who go through with a purchase compared to how many abandoned shopping carts you have. An abandoned shopping cart is when a visitor puts goods in the shopping cart on your website but never go through with the actual purchase. Meaning that if you have 10,000 visitors and 1,000 of these visitors make a purchase you have a conversion rate of 10%. Now calculate your own conversion rate.

Here are five tips how to increase your conversion rate:

  1. Optimize and streamline the payment experience
  2. Analyze customer behaviors
  3. Offer the right balance of payment methods
  4. Implement the latest version of EMV 3DS
  5. Choose a payment partner that helps you increase your conversion rate

Optimize and streamline the payment experience

The usage of mobile is increasing rapidly in all markets. Hence it is important that your website and checkout page is responsive to all devices such as smartphone and tablet. In order to offer your customers a seamless brand experience through the whole shopping journey, customize your checkout window by adding your name and logo. To further make the payment stage as smooth as possible, it is preferable if your payment solution has tokenization, meaning that you give your customers the option to allow the website to remember your bank card details. Tokenization is many times referred to as “Remember me” and allow returning customers to pay faster and smoother.

Analyze customer behaviors

In order to increase sales and to find out exactly why your shopping carts are abandoned you must analyze the data from your web shop. At what point do your customers leave the purchasing process? And what is the reason for it? By taking the time to analyze these kind of data, online merchants can immediately recognize which aspects of the customer journey that create friction and work actively to improve these aspects.

Offer the right balance of payment methods

71% of the abandoned online purchases at the payment stage is due to lack of payment options. Which payment methods you should offer depends on which market you operate in and what customers you have. Hence you should analyze your customers and market in order to know which payment methods you should offer. Preferred payment methods may be very different from country to country. For example, in Sweden the most preferred payment method online is invoice and in Finland it is online banking while in Norway and Denmark it is debit or credit card.

Implement the latest version of EMV 3DS

3D Secure as a tool for secure payments has been around for many years and has sometimes been perceived as complicated for the card customers. In order to facilitate the management of the SCA regulations, and to improve the user experience for the card customers, the industry organization EMVco, which is owned by the card networks, has produced a new version of 3D Secure, commonly known as 3D Secure 2 or EMV 3DS. One of the advantages of the newer version of 3DS is that it enables “frictionless payments”. Frictionless payments mean that an issuer can decide to not request SCA from a card holder to create a more seamless payment experience. This means that you will be able to increase your conversion, without increasing the risk of fraud, if you optimize for frictionless flow.

If you have not already done so, we strongly recommend you to ensure that you switch to the latest 3D Secure version as soon as possible as this reduces the risk of your customers’ transactions being declined and thus increase your conversion rate.

For Bambora’s customers that use our online payment solution, Bambora Checkout, the transition from earlier versions to EMV 3DS will take place completely seamlessly. We will implement the newer versions to all our online customers in order to make it easier for frictionless payments.

Choose a payment partner that helps you increase your conversion rate

You want to have a payment partner that helps you increase your conversion rate. Always put security first and make sure that your payment partner complies with the strictest of standards. Choose a provider with Level-1 PCI DSS certification (the payment card industry data security standard), this will give you all the protection you need. Bambora does of course comply with this standard.

Except for security, your payment partner plays an important role in increasing your conversion rate. A payment partner must be proactive and actively work with improving the user experience as well as offer the latest and most popular payment methods for each market. It is very important to make sure that your payment provider offers the most popular payment methods for your market. With a proactive payment partner that do all this, you can be sure to optimize your conversion rate.

In order to enhance the customer and user experience you should choose a payment solution that is easily integrated to your website for a seamless experience. Bambora Checkout is easily integrated to all the biggest e-commerce platforms. In our reporting tool Bambora Reports, you can also customize and change the appearance of your checkout window directly in the portal.

Source: Ingenico, PostNord

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