Acceptable failure rate for online purchase process?
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Head of e-Commerce at www.proporta.co.uk
14 January 2005 16:29pm
I manage a product that has rather a complex sign-up process, with two separate registration processes. The first step establishes the users’ site username, password and mobile phone number details; the second step verifies credit card and address details. Probably mainly as a result of this, the failure rate for users successfully signing up for the service and using it is unacceptably high. I wonder if anybody has any knowledge of what an acceptable success/failure rate would be for this kind of dual registration process, and what success/failure rate would be achieved by a single sign-on process?
Thanks
Nick
Fndr at Majestic12.co.uk
14 January 2005 20:00pm
I did a fair amount of work in this area in my previous life. It is not uncommon to have 70-85% of users who started to checkout to fail for one or many reasons. It is important to be able to model all steps of checkout and assign failure rates to specific pages, this way you will know where problems are, and most importantly regular monitoring will help see changes in dynamics that can often be due to mistakes, or on the contrary better design decisions.
Generally the less steps in registration you have the better, and the less data you ask straight away the less people will leave. Having a single page signon however introduces a degree of uncertainity that results from not knowing the difference between two distinct groups of people: those who clicked and were not even going to try to fill in the form, and those who tried but failed for whatever reason.
regards,
Alex
Co-Founder at Eisenberg Holdings
14 January 2005 21:21pm
Nick,
This is a terrific question. I have data that we documented using FireClick’s Index of average shopping cart abandonment rates in the 70-75% range. However, this number in my opinion is completely unacceptable. A recent case study was written up in MarketingSherpa about how my company took CafePress.com who already had an incredible 35% abandonment rate (what’s most incredible is that they have thousands of store with their own look and feel -check ours at www.cafepress.com/futurenowinc- and then take them to a checkout process that changes the look feel), down to only 15% abandonment. If you are looking for some ways to understand how you can reduce your current abandonment rate, you can read my article at ClickZ.com titled "20 Ways to Reduce Your Shopping Cart Abandonment Rate." Here is a link to part 2 http://clickz.com/experts/crm/traffic/article.php/2248551 which has a link to part 1 in it.
Best wishes,
Bryan Eisenberg
"The Conversion Rate Specialists: Creating Persuasive Architecture™ Online Home Page: http://www.FutureNowinc.com Weekly ClickZ’s ROI Marketing Column: http://www.clickz.com/experts/crm/traffic/
Co-Author: Persuasive Online Copywriting & The Marketer’s Common Sense Guide to E-Metrics
On 16:29:07 14 January 2005 Nick Hill wrote:
CEO at Logan Tod & Co.
16 January 2005 21:09pm
My company has worked on about dozen projects on process completion in the last 18 months, and I think there are three things we would say in response to your question - but no definitive answer!
So I'm afraid there is no simple answer to your question! Do drop me a line if I can help anymore.
Matthew
Matthew TodLogan Tod & Co Email: Website: www.logantod.comTelephone: 020 7717 8447Mobile: 07961 042870Skype: matthew.todOn 16:29:07 14 January 2005 Nick Hill wrote:
Chief Analytics Officer at Kwantic Oy
17 January 2005 11:10am
Nick,
Acceptable depends on your offer. We've worked on shopping carts with an optimized process and low cost to the consumer which (when we'd finished with it) abandoned at only 17% average. However you only had to spend €17 and you didn't need a credit card, you could use a debit card system as well and we know this improved take up by 19% on that particular service.
On the other hand we've also worked on carts that we couldn't improve past 40% abandonment overall. The catalog included higher priced products at over $2000 and i think that people require a lot more time over that kind of decision.
Of course price isn't the only influence at play. There are a number of articles on our site about ways to improve abandonement ;
This one about shopping carts,
http://www.conversionchronicles.com/page.php?PageID=69&tracking=article10ways
This one about forms in general,
http://www.conversionchronicles.com/page.php?PageID=77&tracking=article10elements
And you might want to consider split testing at later stages;
http://www.conversionchronicles.com/page.php?PageID=47&tracking=articlesplits
To answer your question in general terms I'd say that an acceptable rate of abandonment of an optimized cart is around 40%. At least that's what we aim for with our customers as a base for continued testing. As I say it depends on the product or service but sometimes it's possible to overtake that. The 10-20% level is exceptional and I believe represents the "best in class" as far as abandonment rates go.
On 16:29:07 14 January 2005 Nick Hill wrote:
>I manage a product that has rather a complex sign-up
>process, with two separate registration processes.
>The first step establishes the users’ site
>username, password and mobile phone number details;
>the second step verifies credit card and address
>details. Probably mainly as a result of this, the
>failure rate for users successfully signing up for the
>service and using it is unacceptably high. I wonder if
>anybody has any knowledge of what an acceptable
>success/failure rate would be for this kind of dual
>registration process, and what success/failure rate would
>be achieved by a single sign-on process?
>
>Thanks
>
>Nick