Memo #19

3 Checkout Optimization Hacks that Permanently Increase Revenue

Memo19

What if I told you that tiny changes you can make to your checkout process today, can have a drastic compound effect on your revenue for years to come?

Today I will be discussing 3 checkout optimization hacks that will permanently increase your store revenue and shoot up conversion rates.

1. Streamlining

The main obstacle in place for any purchase to happen, are the customers themselves. They can easily get distracted or simply change their mind. This is especially true if it’s an impulse purchase, as the whim can disappear just as quickly as it emerged.

Unsurprisingly, about 68.81% of online checkout carts are abandoned!

In order to avoid this, you must simplify and streamline the checkout process itself.

You’ve already done the hard thing of getting them interested in the product in the first place.

Now, the best approach here is to imagine that you’re designing the checkout window for a child.

For instance, don’t use complicated language, pick bright colors for the important bits so they’re the only element of the screen to draw attention.

Here are some hacks we’ve used in the checkout window to streamline it:

  • Replacing the “Continue to payment method” button with one that says “Continue to payment info 🚚” - as silly as it is, the emoji actually makes a statistically significant difference.
  • Instead of saying “Pay now” put “Complete Order ✔” - in this way you don’t prime people to think about their money while purchasing something.
  • Use Google Address autocomplete - by using Google’s API, you can include their address by default, so they can quickly move past the address window.
  • Express payment option configured and activated (Google Pay/Apple Pay/Amazon Pay) - by prioritizing these platforms in the checkout process you can save your potential customers time having to take out their cards, and second-guess their purchase as they input the data.

2. Discounts

Coupons are a fantastic way to retain users by making them invested in a product before they’ve even purchased it, as it can reframe the purchase as an opportunity to save money.

For example, If a customer receives a 30% discount for a $10 purchase, they often don’t interpret it as spending $7, they view it as saving $3. In other words, not using the coupon is seen as wasting money.

However, it’s worth remembering that a recent YouGov poll determined that about 20% of Americans can’t calculate, nor even understand percentages.

As such, it’s very easy for the coupon itself to become a source of distraction. So you have to be strategic about the way the coupons are incorporated into your checkout window.

Here are a few hacks we’ve found for Shopify and WooCommerce:

  • Don’t highlight a coupon option when you don’t have major ongoing promotions - if you make a big deal of coupons, your customers might decide to go Googling for coupon codes, get distracted, and never come back.
  • Make the coupon window collapsible so that the user does not leave the checkout tab in search of coupon codes AND/OR include a coupon in the window by default. This gives users the satisfaction of getting a discount but stops them from going elsewhere.
  • Have a timer on your checkout cart that ticks down. This works especially well when paired with a “timed” discount, or when promoting limited edition items. This induces a scarcity mindset in the customer and stops them from overthinking.

3. Upselling

Upselling can be tricky in regards to optimizing checkout conversions. On the one hand, doing it successfully can be quite lucrative, on the other, you are introducing new potential sources of distraction to your customers.

You must find a balance between nudging customers to purchase more and not distracting them.

Here are two ways of upselling at the checkout point without reducing your conversion rates:

  • Include an option to buy multiple quantities of the same product. If someone is interested in purchasing your product, they might want to buy extra items as gifts or to have in reserve for themselves.

So give them the option to increase the amount per item at checkout, and have them convince themselves!

  • Prioritize getting a phone number at checkout, over an email. The average person receives upwards of 120 emails a day, if we include work emails. Even if you reach your customer’s inbox, it might get lost in spam. On the other hand, industry stats suggest that open rate of SMS are considerably higher than the open rates of email.

By getting their contact info, you can easily remarket to them, and upsell goods once they’ve already bought a product from you and there’s no risk of them getting distracted.

And there you have it!

These are the three main areas you have to keep in mind to optimize your checkout screen: Streamlining, Discounting and Upselling

By mastering these spheres in unobtrusive ways, you will permanently increase your checkout conversion rates!

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