Only 13% of the world’s consumers generate 62% of e-Commerce revenues, spending $372.5 billion from March 2015 to March 2016, according to a study from WorldPay. With such a small percentage of consumers accounting for such a large slice of online retail, merchants should certainly cater to these “Super-Shoppers” whenever possible.
Payment methods are a good place to start, given that 52% of global Super-Shoppers and 72% of U.S. Super-Shoppers said they would abandon their purchase if their preferred form of payment is not accepted at checkout.
Characteristics of these Super-Shoppers often include:
Being active around the clock, even late at night;
Seeking the best products and most competitive prices;
Being passionate about their purchases; and
Citing credit cards as their preferred payment method.
“We used to interview cardholders and find that when they couldn’t sleep at night, they would count sheep,” Eaton-Cardone said in an interview with Retail TouchPoints. “In today’s environment not being able to sleep at night equates to playing a video game and has gravitated to shopping online with your phone. We see tremendous buying spikes happening in the middle of the night on mobile devices.”
Globally, 52% of Super-Shoppers prefer to use their credit card for shopping, a 10 percentage points higher than the 42% global average of all other shoppers. Therefore, it’s important for retailers to provide a full range of payment options, or they may face lost sales.
“It’s a very difficult balance for retailers, because today’s online environment is extremely competitive,” Eaton-Cardone noted. “A savvy retailer must be very conscious of making sure they have a top converting site and a highly valuable product. In addition, they have to make sure they have very clear policies and invest in services and abilities that are available 24/7/365.”
The Worldpay report estimates that the cost of a lost transaction to each retailer could be as much as $144, a significant amount of lost revenue from such frequent and high-value shoppers. Even worse, consumers that are unhappy with their purchasing experiences may initially make a purchase, but then call their credit card provider to cancel it altogether.
“The online retailer’s biggest competitor is a hidden one: the cardholder’s bank,” Eaton-Cardone said. “If you don’t provide great customer service, or your customer can’t reach you at 2 am on a Sunday, they may go online or call their bank and file a chargeback. That’s a horrendous cost, and it’s an increasing cost. While online transaction growth has increased by 7%, chargebacks have increased at a rate of 20% per year.”