BOSTON, MA – August 31, 2016 While it took longer for customers to complete a purchase at the top and bottom performing retailers earlier in the year, both have improved their checkout times in the third quarter of this year, according to the latest PYMNTS.com Checkout Conversion Index (CCI).
The collaborative study with BlueSnap, measures the amount of friction customers experience when they shop online. It does this by identifying the website and payment attributes that are most likely to cause problems during the eCommerce checkout process that result in abandoned shopping carts and lost revenue.
In the first quarter, the range between the top and bottom performing merchants was 131 seconds to finalize a purchase, according to the Index. However, the difference has narrowed over time, decreasing to 48 seconds in the third quarter of 2016. The biggest contributing factor was a dramatic improvement in reduced friction during the pre-payment process.
Meanwhile, the overall CCI score continued to trend higher, rising 1.4 percent from 56.4 in Q2 2016 to 57.2 in the third quarter of this year. The previous quarter’s increase was attributed to checkout friction reduction during the pre-payment and the payment processes.
One thing that has become apparent is there isn’t much in the way of a middle ground when it comes to online merchants: they are either finding success or they aren’t.
Of the 635 merchants analyzed, 48 saw their scores jump at least 10 points higher, while 26 fell by more than 10 points. Last quarter, 88 retailers experienced at least a 10-point increase, compared to 22 that saw their scores dip more than 10 points.
One hundred forty-two retailers saw their score increase by at least five points between April and July. At the opposite end of the spectrum, 81 retailers saw their scores drop by more than five points.
When comparing industries, none of them are doing exceptionally well, but the majority have shown improvement since last quarter. The best industries are barely earning a C, and six of 14 industries got a D or F.
Apparel and accessories, both of which earned a score of 64.1 and proved to be the top performing industries, were 24.2 points ahead of the lowest-scoring industries, marketing and other software services which had a score of nearly 40. Overall, the top industries are getting better each quarter, while the poor-performing industries are doing worse per quarter.
Here are some other highlights from the Index:
- Sixteen websites scored an “A” (75-plus), six more than Q2, 189 earned Bs (65-75), 206 earned a C, and slightly more than 35 percent tallied either a D or an F.
- Average checkout times were 21 seconds faster for all retailers than the prior quarter.
- On average, top 30 retailers had an online checkout time of 128 seconds, which is 33 seconds quicker than average.
To get exclusive insights, download the complete Checkout Conversion Index. A Checkout Conversion Calculator is available here for merchants to benchmark their own performance against others of their size and segment.
PYMNTS.com is reinventing the way in which companies share relevant information about the initiatives that shape the future of payments and commerce and makes news. This powerful B2B platform is the No. 1 site for the payments industry by traffic and the premier source of information about “What’s Next” in payments and commerce. It provides an interactive platform for companies to demonstrate thought leadership, popularize products and, most importantly, capture the mindshare of global decision-makers. For more information, visit the PYMNTS website.
BlueSnap is a global payments technology company that provides a simple way to accept payments from almost anywhere – in your mobile app, online and for invoices. The Powered Buy Platform™ empowers frictionless payment experiences with a single integration to multiple payment methods, world-class fraud protection, robust reporting and the ecommerce tools you need to grow your business. The platform includes a global network of acquiring banks to help drive higher conversions worldwide. Learn more how BlueSnap can help your business accept payments and convert more at bluesnapstg.wpengine.com
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Kimberly Rowell, BlueSnap
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