Increase Conversion and Reduce Abandonment with PayPal Best Practices

INCREASE CONVERSION AND REDUCE ABANDONMENT WITH PayPal BEST PRACTICES Suchit Dash, Product Marketing Manager

AGENDA
The Old Shopping Experience
Understanding PayPal’s Methodology for Multivariate Testing
How to Improve Your Website – A Page by Page Analysis
RIAs and the Shopping Experience

THE OLD SHOPPING EXPERIENCE

CONSUMERS LOOK TO THE INTERNET AS THE STARTING POINT FOR PURCHASES Offline conversion = 65% Shopping cart abandonment = ~1% 63% 37% Online conversion = 5-6% Shopping cart abandonment = ~50% Research from: ComScore, March 2006, PayPal Internal Data Google Shopzilla Shopping.com

IMAGINE YOU HAVE NEVER USED PayPal AND STUMBLE UPON A WEBSITE Would you want to use PayPal?

YOUR WEBSITE IS AN EXTENSION OF OUR BRAND A good integration can greatly enhance the buyer experience

AGENDA

HOW DID PayPal GAIN PENETRATION WITH SO MANY POOR INTEGRATIONS? Improved PayPal branding and presence can provide a significant boost to the merchant’s conversion and sales. An Example: Home Page Product Description Shopping Cart Account Page Billing/Shipping/Payment Page Congratulations Login Review Present Focus
Future Focus
Overall Sales
Site Conversion

MULTIVARIATE TESTING ACROSS INTERNET WEBSITES TO UNDERSTAND BEST PRACTICES Site Conversion Rate = # of users that reached the confirmation page # of users that viewed the page being tested Sales = Merchant’s overall sales (PayPal and non-PayPal) PayPal Conversion Rate = DoExpressCheckout (Complete payment) SetExpress Checkout (Start Express Checkout) Merchants and Methodology
Tested over 100,000 transactions across some of the biggest brands on the Internet
Used Omniture Test and Target (formerly Offermatica) to A/B test different recipes focusing on the overall sales and conversion

AGENDA

60% OF CONSUMERS THINK ABOUT PAYMENTS BEFORE THE FINAL PAGE Source: PayPal/JupiterResearch Survey (12/07), n = 2,140 (US only) 60% Branding PayPal earlier allows users to make that choice quicker and safer, which increases the likelihood for impulse buys.

BUYERS BEGIN TO THINK ABOUT PAYMENTS AS EARLY AS THE HOME PAGE
Home Page
The higher you place PayPal on the homepage, the better the conversion rates.
Even placing a footer image for PayPal makes an impact on the overall sales.
OR Overall Sales No footer - ~ .5% -

CONSISTENT BRANDING ACROSS YOUR SITE INCREASES SALES AND CONVERSION Home Page Product Page Shopping Cart
Home Page, Product Page & Shopping Cart
Consistent branding allows buyers to discover PayPal’s acceptance.
Placing PayPal assets in the navigation bars performed very well.
Overall Sales Conversion No change Consistent: Product: - 3% ~1% - 2% .5%

EXPRESS CHECKOUT PROFOUNDLY AFFECTS SALES AND CONVERSION No PayPal Express Checkout* With PayPal Express Checkout* “ We conducted multivariate testing on our web site with and without PayPal. The results showed that PayPal Express Checkout increased our overall sales by 11%. PayPal is a strategic advantage to our business.” Fred Lerner, CEO of Ritz Interactive . + Visitors Conversion Rate Conversion Lift Overall Sales (Non-PayPal + PayPal) Sales Lift 119,994 0.78% (937) - $376,959.13 - 120,015 0.86%(1,028) 9% $414,246.41 11%

A BILLION DOLLAR RETAILER SAW A 4% LIFT WITH EXPRESS CHECKOUT PLACED PROPERLY
Limiting the number of pages after returning from PayPal is key (best practice 1-2 pages)
If you have a store account, provide a guest checkout option for your buyers
Always give full information on the cart page with shipping costs to reduce abandonment
Revenue Per Visitor Sales Lift Conversion Lift $51.06 - - $53.36 ~4% ~4% +

PayPal TESTING TO ENSURE WE’RE USING THE RIGHT BUTTON Current button converted 11% better than other buttons Tested Conversion Rate 31.6% 30.3% 25.0% 24.3% 26.7% 29.0% 28.4%

PLACING PayPal TO THE LEFT OF THE CHECKOUT BUTTON IMPROVES CONVERSION Conversion rates for vertical placements = ~ 27% Conversion rates for horizontal placements = ~ 30%
Key Takeaways
Users on average put 3 items in their basket.
Buyers use the cart as a wish list and return to the site.
Placing the button underneath hides the button below the fold.

GROUPING PAYMENT OPTIONS DISTRACTS THE USER FROM COMPLETING THE FLOW or or or Reduces conversion by 3% Being closest to the merchant checkout button improves conversion by 4 %

USERS PREFER MORE DETAIL ON THE REVIEW PAGE OVER 90% OF THE TIME
PayPal Review Page
A recent quantitative usability study* conducted on Dell.com showed that 90% of users preferred line item details on the review page.
Users commented that the increased information made them feel more confident.
* = study included 400 participants

RADIO BUTTON IMPLEMENTATIONS ARE CRUCIAL TO PayPal’s CONVERSION
Payment Page
Our top 100 analysis showed that using radio buttons converted 22% better than dropped down/tabbed formats.
Users tend to notice the radio button in a much more clearer fashion in this format and have seen major improvements.
Radio Buttons Dropped Down/Tabbed Interface

CONVERSION AND SALES INCREASE When PayPal is implemented correctly, merchants see up to a 9% lift in conversion and up to a 6% increase in overall sales. Home Page/ Product Page (assuming consistent placement) Shopping Cart (assuming Express Checkout implemented correctly) PayPal Express Checkout Pages (assuming line item details) Payment Page (assuming radio button implemented) Approximate Increase Conversion Lift 3% 4% 2% tbd 9% Sales Lift 2% 4% - tbd 6%

RECOMMENDATIONS
Placing PayPal messaging early and often improves overall sales and conversion.
Put yourself in the buyer’s shoes – would you feel comfortable using your website?
Keep content clear and simple.
Create a happy path for your customer – optimize their experience.
Reducing abandonment to the levels of the offline world is next to impossible. Optimize the process, become one of your buyers, and you’ll see results translate instantaneously.

AGENDA
Daniel Dura, Flash Platform Evangelist, Adobe Systems

[email_address]
Questions?

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Increase Conversion and Reduce Abandonment with PayPal Best Practices

by PayPalX Developer Network on Nov 10, 2009

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Increase Conversion and Reduce Abandonment with PayPal Best Practices — Presentation Transcript