EBE 2019 - Making families happy - taking the pain out of paying
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Thomas Ficht Head of Payment MyToys Shopping for the latest robots, the cutest dolls, the most stylish shoes or any other present for your kids should be as much pleasure as seeing the spark in their eyes when unwrapping what they craved for. Thomas will explain how myToys ensures that shopping carts full of gifts are not only packed but also paid. He will go into detail how myToys is streamlining its payment procedures to make families AND the myToys CFO happy.
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EBE 2019 - Making families happy - taking the pain out of paying
- 2. Title Text Making families happy - taking the pain out of paying Thomas Ficht Head of Payment myToys Group @FichtThomas
- 3. Title Text We make families happy
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- 8. Title Text Having to pay
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- 16. • Lightning fast checkout • Make payment disappear • Offer local payment methods
- 17. • Lightning fast checkout • Make payment disappear • Offer local payment methods
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Editor's Notes
- Our mission!
- Who are we? myToys – anything from baby toys, kids furniture and clothing to toys for big kids such as Playstations etc. mirapodo – shoes and clothing for the entire family! Yomonda - your families home is fully equipped. One checkout, one fulfillment center, managed by us about 800 colleagues in Berlin. limango – our shopping club based in Munich. myToys Group. And – last but not least – all of us belong to the otto group. But we are not all about online shopping…
- To be closer to our customers we also build 17 brick and mortar stores all over Germany. And as we all know…
- …we are not alone out there. We also offer our products on a variety of marketplaces. But we started off with our mission and our mission is really this:
- Because this is what makes families happy! And even the payment professionals know…
- It‘s NOT paying that makes us happy. We rather want to…
- ..through the checkout without having to click five hundred timeS, worry about passwords or how much money we currently have in our account.
- So what do we do at myToys to make this happen? We offer the payment methods requested by our customers. Starts with open invoice – very special for anybody who has not lived in Germany but absolutely essential for the majority of German online shoppers and especially our predominantly female target group. Direct debit is also a very German payment method, but it is simple and you as a merchant can simply pull the money from your customers account. To us at myToys these two payment methods are considered unsafe payment methods as it is our loss in case the customer does not have sufficient funds. But lets move on to the safe payment methods – methods where we pay our payment partner to guarantee the money. Sofort: Not as popular but essentially the same as p24 in Poland or iDeal in the Netherlands – direct money transfer to our bank account People who love to have their account clean at all times. Paydirekt: The German Paypal clone still waiting for the break-through with customers – but in case that happens, myToys is prepared! Paypal: The real deal, most important for all German merchants offering electronics but even fashion sells well via Paypal in Germany. – I would guess Germany has the highest Paypal market shares in Europe. Installments – Highest average basket at myToys but customers even pay 15 – one five – EUR in installments. Cash on delivery – for customers who do not trust in online payment methods or without bank accounts Creditcard – baskets slightly above average – usually with a slightly higher income – please note that we only allow card payment via 3DS – we are one of the few merchants hopefully looking into a bright future with SCA and PSD2. As I mentioned already invoice is our and our customers most favorite payment methods – cheap, quick and everybody loves it. Paypal is by far second biggest payment method All the others are very similar in one-digit percentages. Pretty big range huh? – Lets look at how we try to make things easier once the customer has found HER payment method: …
- But let‘s look at what happens to existing customers. We already know their adress!
- But let‘s look at what happens to existing customers. We already know their adress!
- … and decided not shoot our existing customers right to the confirmation page. Less clicks higher conversion!
- Our customers are happy with invoice because they pay later, but why are we? Lets look at a Paypal-Checkout:
- And an invoice checkout. Need I say more?
- Quick summary. But what you personally really want is a happy boss and a happy CFO!
- Quick summary. But what you personally really want is a happy boss and a happy CFO!
- right? You can always compliment on his glasses or style but you could also:
- Make sure you monitor and report the right KPI We like: the conversion rate of the payment page with invoice offered and without Offering rates for unsafe payment methods the distrubution of our payment methods average baskets return rates Our default (remember safe vs. unsafe payment methods) We differentiate most of the metrics between new and existing customers We also like: Total (and I mean total) cost of each payment method (including internal costs, overhead, PSP-costs, disagios, fixed costs, current bank account costs…) Cost of capital – how long does it take until you have the money on your bank account!
- Optimizing is simple! Just exchange thoughts, ideas and optimization tricks with eachother. Ask for help from others with more experience in the area. – myToys and I personally strongly profit from the exchanges with all the other merchants of the otto group.
- Insource the easy stuff – Paypal/Sofort implementation. Oursource the complex stuff – installments, creditcards, virtual IBANs for every customer.
- Offering two unsafe payment methods we have to closely monitor our customers to identify fraudsters as early as possible. We have 7 people on our fraud prevention team and I am telling you their headcount is not only cheap but they are even making money for myToys!
- But it is not only about identfiying fraudsters - it is also about hunting them and cooperating with the autorities. And don‘t forget not all non-paying customers are fraudsters so we have a separate receivables management team of 6 at myToys ensuring that our customers are initially gently reminded that they might have forgotten to pay and eventually send to our debt collection partner.
- Optimize fraud prevention new conventient options to pay invoices. Optimize our internal processes, to make sure our most important resource – our specialist colleagues – can focus on more on specialist tasks than on manual routines.