3 Things to Know About What’s Stopping Shoppers
Changing consumer behavior has made it difficult for retailers to predict whether shoppers will or won’t complete a purchase, especially when it comes to big-ticket items. FuturePay’s newest study, The Big Ticket: What’s Stopping Shoppers?, aims to clear things up with an in-depth look at the online shopping habits and payment preferences of 1,500 U.S. online shoppers.
The report focuses on a wide range of topics, including big-ticket shopping online, the frustrations getting in the way of completing purchases and how alternative payment options, like financing, can influence the purchase decision. Key insights on daily shoppers, cart abandonment and big-ticket purchases promise to help retailers keep up with changing consumer preferences and generate more revenue along the way.
The Distinctions of Daily Shoppers
From 2007 to 2015, the global number of mobile device users increased by more than 300 percent. Despite this dramatic growth, mobile hasn’t won over every online shopper just yet. In fact, 77 percent of online shoppers still prefer to use a computer to research products. People who shop online at least once a day, however, aren’t shy about embracing mobile. More than twice as many daily shoppers prefer to research on mobile than those who shop online just a few times a year. For retailers, the choice is clear — optimize the mobile experience or risk falling behind those who do. As more shoppers turn towards mobile, retailers that invest in making their mobile site user friendly will be positioned to close more sales than their competitors.
Daily shoppers also provide retailers with a glimpse into future consumer demands as they're more likely to adopt new technologies earlier to improve their experiences. When it comes to payment options, daily shoppers are familiar with more than just credit cards. Four out of 10 daily shoppers have used a layaway program, and 73 percent would be more likely to buy a big-ticket item online if financing options were available. By offering a variety of payment options, retailers can better meet the needs of daily shoppers, thereby increasing sales from this key segment of consumers.
Curbing Cart Abandonment
From the cost of shipping to website security, it doesn’t take much for shoppers to abandon a cart. In fact, virtually all online shoppers have admitted to abandoning an online shopping cart at one point or another. Retailers looking to salvage those sales need to consider what’s generating friction within the shopping experience.
For 86 percent of shoppers, the cost of shipping is reason enough to abandon a cart, while 72 percent skip out on a purchase when the cost of their order becomes too expensive. Whether it’s free shipping or click-and-collect, offering a wide range of fulfillment options will help keep shoppers from pulling the plug on potential purchases.
The Big Ticket Struggle
It’s no surprise that big-ticket shoppers are quick to abandon their carts. With price tags totaling hundreds or even thousands of dollars, big-ticket items require much more research than other consumer goods. Nearly four out of five shoppers prefer to see a big-ticket item before purchasing it. However, while consumers are naturally hesitant to go through with big-ticket purchases, that shouldn’t keep retailers from improving their online experience as much as possible. A third of consumers who shop online a few times a year — as well as three-quarters of daily shoppers — have made, or are planning to make, a big-ticket purchase online.
One way retailers can help spur big-ticket purchases is by offering alternative financing and payment options that make it easier for shoppers to pay for such items. More than 70 percent of shoppers said a retailer providing more ways to pay than just a credit card is “very important” or “somewhat important.” Better yet, 68 percent of all shoppers — and 79 percent of daily shoppers — would be more likely to make a big-ticket purchase if they could break it up into smaller payments. By introducing alternative financing and payment options that accommodate the demands of online shoppers, retailers can quickly set themselves apart from the competition.
Increasing sales — big ticket or otherwise — is all about catering to the needs and preferences of online shoppers. Retailers that address common frustrations, including high shipping costs and the absence of alternative payment options, will win the loyalty of online shoppers.
Bobbi Leach is the CEO of FuturePay, an e-commerce payment solution for the omnichannel shopper.