The Checkout Blind Spot
Big retailers aren't necessarily big because they know something smaller sellers don't - often it's just a case of greater investment. In fact, new research out from PYMNTS.com and BlueSnap indicates that size doesn't really matter at all when it comes to the success of checkout experiences.
The latest data from the Checkout Conversion Index, which measures payment conversion problems that arise when consumers encounter friction in the online shopping experience, reveals some rather interesting insights:
- Average checkout times were 22 seconds faster for all merchants than in the previous quarter.
- The top 30 retailers had an average online checkout time of 146 seconds, which is nearly 30 percent faster than average.
- The average online checkout time for the biggest retailers was 197 seconds, which is 41 seconds slower than the smallest merchants.
The study also revealed four "blind spots" that get in the way of a stronger performance by larger retailers (although they impact smaller retailers as well), including the lack of relevant data (the data blind spot), a lack of a having a checkout conversion strategy (the strategic blind spot), the reliance on in-store POS partners to deliver an eCommerce and mobile checkout experience (the hardware blind spot), and an unrealistic expectation of omnichannel at the expense of perfecting a multichannel experience first (the omnichannel blind spot).
BlueSnap CEO Ralph Dangelmaier said that these findings are also consistent with the hundreds of conversations he’s had with larger brick and mortar merchants over the last several months about their checkout conversion challenges. “They know they could do better, but don’t have the data to pinpoint where their problems are,” said Dangelmaier. “They also assumed that making the move to digital would be roughly similar to how they mange payments and checkout in-store – and leverage physical POS relationships to get them there. That’s proven to be a strategic, fatal mistake."