Why Do Consumers Leave Empty-handed

Why the Sudden Rush into Point of Sale Consumer Financing?
Why the Sudden Rush into Point of Sale Consumer Financing?
April 4, 2019

Why Do Consumers Leave Empty-handed

Think about how many steps are involved in making a purchase online. From finding the right retailer to locating the product, to checking all of the variables, a shopper has likely made a dozen decisions by the time they reach the checkout screen! Now, they’re faced with one more: How do I pay?

The higher the value of their cart, the more thought they’re going to give this question. It’s easy to click the PayPal button for a $20 t-shirt. It takes a monumental effort to type in a credit card number for a $2,000 leather couch! By the time a shopper types in their name, credit card number, CVV, mailing address, zip code, and other information, there’s a good chance they’ve also talked themselves out of pulling the trigger on that sale.

Why do customers leave?

The numbers don’t lie! Customers get the jitters when the payment process takes too long or is too complicated:

  • The average eCommerce site has a cart abandonment rate of between 70-90%
  • 28% of shoppers abandon their carts due to long and complicated check out processes
  • 19% leave because they don’t trust the site with their credit card information
  • 8% leave due to lack of payment options
  • 4% skip the checkout because their credit cards are declined

 

 

From this data, we can learn two things. First, the longer the checkout process, the more likely customers are to walk away. Second, credit cards cause a lot of grief when it comes to completing payments.

How do you close the sale?

The solution to both of these issues is simple: Consumer financing. Implementing ChargeAfter takes care of both issues simultaneously. Here’s how:

  • ChargeAfter adds a financing button to the payment options, taking care of the 8% of customers demanding more diverse ways to pay.
  • Clicking on the financing button brings up information about how financing works, as well as the first step of the credit application.
  • If they choose to proceed, the credit application is just 5 fields of information that can be filled out in seconds. When they submit, customers get to see their financing options moments later. This helps address the 28% of customers who are concerned about the long or complicated checkout process.
  • After they’re approved and select terms, customers can check out without entering their credit card. Instead, they accept the financing for the amount of the total. This satisfies the 19% of shoppers who are wary of giving away their credit card info and the 4% of customers dealing with a declined card.

Consumer financing streamlines checkout, addressing all the major factors that might otherwise lead to abandon carts.

Pose a different question

Consumers making a high-dollar purchase already have enough decisions to make. When it comes time to decide how to pay, they’ll avoid pressing the buy button at all costs when their credit card is at the receiving end of the transaction. However, when they’re able to painlessly pick their own financing terms, the decision to check out becomes a lot less painful!

Instead of the last decision being “should I stay or should I go?” make sure your customers’ last decision is “which of these financing terms is right for me?” Your abandoned carts rates drop, conversion rates rise and, best of all, returning customer numbers soar.

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