Imagine for a moment a customer shopping at your store. They browse the site, like what they see, and add products to their carts. Once it comes to payment, though, they realize that your site doesn't support their preferred payment method. This means a less than optimal customer experience, and in the worst case, a lost sale.
Now, this is only one example of many other reasons why your payment methods can lacking. But it's simple, you can have the most effective marketing, best-designed website, and the highest quality products, but, ultimately, your customer experience will suffer if your payment methods are lacking. And if your customer experience suffers, so will your conversions.
How Payment Methods Affect the Customer Experience
According to 98% of all the respondents surveyed, payment operations are either "very" or "extremely" important parts of their strategic growth and expansion plans.
In contrast, lacking payments options or implementing and using the wrongs ones can inhibit growth, and the respondents' replies shows that they know this. Here, 30% of the respondents indicated that their current payment processing relationships are the greatest hurdle to their success.
At its core, the problem with having inefficient payment processing systems is that customers often have a hard time completing purchases. Now, this could either be because the platform doesn't support the customers' preferred payment method, or customers may struggle to complete their payments with those that are available.
This ultimately means that they lose sales, and even if customers buy, chances are they won't be back. This, over time, severely decreases their conversion rate.
How To Improve
And conversions are the lifeblood for every business. Without them, there's simply no sales and no revenue. So, it's vital to improve payment methods to indirectly improve conversion rates.
To improve, it's crucial to look at what consumers expect. In a competitive and customer-centric market, consumers expect frictionless and seamless digital experiences, from choosing to product to the checkout process. And here, retailers like Amazon have set the bar with their one-click checkout.
Retailers should strive to replicate this experience with the use of new technologies that removes checkout frictions but should still be mindful of mitigating fraud risks that are all too common with online experiences. And here retailers are struggling with only 4 percent reporting that they're doing well here. That leaves huge room for improvement and suggest a massive opportunity for growth if they get it right.
It’s clear that you need a frictionless and seamless payment experience to have an exceptional customer experience. If you don’t, your sales journey will suffer and your conversion rate and revenue will fall.
This means all time, money, and other resources you spend on website design, marketing, and inventory goes to waste and your customer experience isn’t as good as it could be.