Generating revenue and creating customer satisfaction are critical to the success of an online business: the execution of these factors, however, can at times be a little more tricky. We asked ourselves what the most essential factors are for online shop owners to ensure they are maximizing their success potential.
As shared in our newsletter, Statista published a few helpful tips in their 2015 study of German online shops:
– Good traffic on a shop’s website does not necessarily mean customers buy at the same rate
– The most preferred payment types are not always offered (buying on account, PayPal and direct debit)
A current study of ECC Köln, Hermes, SAP and Yapital of around 10,000 German consumers showed that they value the following in an online shop:
– Their preferred payment method at checkout (9 out of 10 people said this)
– Secure handling of customers’ personal information
– A transparent shopping cart overview (including price, quantity and shipping costs)
– Quick and intuitive ordering process
In addition, online shop operators should make sure that the company’s target group is met through the shop’s website layout, the product offerings, and the ordering process.
Research by the German Federal Bank regarding payment behavior patterns in Germany showed that the online checkout process is influenced by the age and household income level of the customer. For instance, households with a higher income level tend to reach for their credit cards to pay for online purchases, more so than lower-income households. A 2015 consumer study by KPMG makes a distinction between „consumer types“ according to their age group and digital affinity. Younger consumers, for example, need more payment options than older ones, despite having a stronger digital affinity. Older consumers are more likely to have a larger choice in bank accounts and payment cards.
Overall, taking these factors into account should help online shop operators experience less purchase cancellations. An easy ordering, payment and delivery process will result in a higher customer retention rate, and, in turn, have a positive impact on returning customers and corresponding revenues.
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