Tips for Increasing Ecommerce Conversions

Tips for Increasing Ecommerce Conversions

To grow and maintain a steady revenue stream, an ecommerce business must learn to increase conversions. Optimising the payment experience is one way.

You can increase transaction success rates by improving the customer payment experience. As a result, even minor changes to the payment process can impact a company’s bottom line. So we need to know what changes to make for positive and lasting effects.

The payment experience can be divided into three parts:

  1. Checkout and initiation,
  2. Authentication and fraud management, and
  3. Authorization and remittance

Keeping this in mind, let’s examine each pillar’s conversion potential.

Checkout and Initiation

Thanks to an ever-evolving ecosystem of connected devices and apps, the customer checkout experience has never been more complex. It’s not easy to create and maintain a high-performing user experience across all of these channels. Success requires knowledge of various technologies, market trends, and customer habits.

The user experience (UX) is crucial to retaining shoppers. Customers must be able to easily input the minimum amount of information. Tokenization can help ecommerce businesses avoid having customers fill in the same fields repeatedly.

Moreover, retailers must provide tailored payment options in each region, allowing customers to pay in their preferred method and currency.

Authentication & Fraud Management

Fraud affects conversion rate directly and comes in many forms. To effectively combat fraud, ecommerce businesses must balance security and conversion. Strict controls will reduce fraud rates but may increase false positives. Denying genuine buyers results in lost revenue and discourages future purchases.

Developing a clear picture of fraud analytics and optimizing fraud controls are key here. New tools that use AI and machine learning can reduce fraud and increase conversions.

Authorization and Remittance

To approve and settle transactions, merchants require acquiring strategies and technical approaches. This is especially difficult when expanding into foreign markets, where merchants must comply with local payment processing requirements.

Creating a local legal entity to process domestic transactions and partnering with a PSP that has connections with multiple local card acquirers are two options. In some cases, it may be beneficial to route failed transactions to a secondary backup acquirer for a retry. Automatic re-routing can increase authorization while minimizing customer impact.

In conclusion

Increasing conversions and improving the payment experience requires a three-step process. First, analyze data points across the payment experience to see what helps and hinders conversions. Set measurable goals and thoroughly test potential payment solutions. Finally, organize reviews to maintain and improve KPIs.

Leave a Reply