While there are many reasons why consumers don’t complete the checkout process, it usually boils down to how complicated the process actually is. Even the most seamless shopping experience can grind to a halt when the customer has to fill out pages of username and password information, billing and shipping addresses and security questions.
Shoes.com found a way to simplify the checkout process with Klarna, utilizing a pay-after-delivery solution among other criteria. The pay-after-delivery checkout option alone sparked a total checkout conversion of 80%.
The pay-after-delivery option allows customers to pay for their purchases up to 14 days after the item reaches their doorstep. This gives shoppers the ability to order more than one size and to try on their shoes without having to wait for the retailer to credit their return amount, which can take a few business days. The solution also makes it easier to shop on the go without the hassle of taking out a credit card in public.
In addition to this option, the retailer also sought to:
- Reduce the number of fields the consumer has to type in;
- Store payment information so consumers didn’t have to re-enter the information during future checkouts; and
- Offer a “buy now, pay later” option and the ability to pay in increments.
The integration of Klarna’s entire, more streamlined checkout went live a week before Black Friday 2015, and from October to December, Shoes.com experienced the following conversion rate increases:
- 59% on mobile phones;
- 50% on tablets; and
- 27% on desktop.
“We made the decision to bring on Klarna for two reasons,” said Roger Hardy, CEO and Co-Founder of Shoes.com, in an interview with Retail TouchPoints. “To streamline the checkout flow for customers, particularly on mobile where our customer base has grown significantly over the past 12 months, and to improve our security verification process, specifically when validating customers’ payment methods.”