10 proven tactics to increase checkout conversion rate and boost your sales

The efficiency of your checkout process is not just a component of your e-commerce strategy — it's the backbone. With statistics from 2023 revealing a staggering 70% cart abandonment rate, optimising your checkout conversion rate becomes critical. This article explores strategic enhancements to your checkout process that can significantly uplift your sales.

What is the checkout conversion rate?

The checkout conversion rate is a pivotal metric, denoting the percentage of customers who complete a purchase against the total number who added items to their cart. This figure reflects the efficacy of your checkout process — a high conversion rate implies a seamless, frictionless checkout experience. In contrast, a lower rate signals potential hurdles customers face during the final purchase stages.

Benchmarks and industry averages

Benchmarks for checkout conversion rates fluctuate across industries, yet a universal truth remains:

Another essential metric directly related to your conversion rates is shopping cart abandonment. The Baymard Institute's comprehensive analysis underscores an average abandonment rate of nearly 70%, pointing to a widespread challenge across e-commerce platforms to retain customers through the final purchase phase.

How to calculate the checkout conversion rate?

The formula for calculating your checkout conversion rate is straightforward: divide the number of completed purchases by the total number of shopping carts created, then multiply by 100 to derive a percentage. This calculation offers a clear lens through which to view your checkout process's effectiveness, serving as a baseline for measuring the impact of any optimisations you implement.

Why the checkout experience is essential for the conversion rate?

For every online business, the usability of its website is the bedrock of its success. In this regard, it is crucial to think of a checkout page as the essential component of your website, which it truly is. However, some businesses still neglect it, resulting in consumers' frustration and lost sales.

Various studies confirm that more than half of consumers have experienced technical issues at the checkout page or abandoned a complicated payment process in the past. For merchants, it means an inevitable increase in the shopping cart abandonment rate.

How to increase the checkout conversion rate: 10 ways

1. Convey free shipping and free returns

One of the most cited reasons for cart abandonment is the added cost of shipping. A study by the National Retail Federation found that offering free shipping directly correlates with a reduction in cart abandonment rates. Moreover, a clear and lenient return policy can significantly diminish purchase hesitancy, thereby boosting conversion rates.

So, here are some tips you can consider:

• Make your free shipping and returns policies visible throughout the customer journey, especially on product pages and within the checkout process.
• If free shipping is conditional upon reaching a certain order value, ensure this threshold is clearly communicated and consider adding a progress indicator in the cart.
• To alleviate purchase hesitancy, offer a straightforward, hassle-free returns process and clearly communicate this on your site.

IKEA's approach to returns and shipping is a clear example. Their 365-day return policy for unopened products, hassle-free returns, and the ‘Love it or exchange it’ 90-day trial for mattresses reduce purchase hesitations, encouraging customers to complete transactions with the assurance that their satisfaction is a priority. Such policies enhance the shopping experience and build trust, which is crucial for repeat business and positive word-of-mouth, ultimately boosting conversion rates.

2. Simplify the checkout process

A complex or lengthy checkout process can deter customers from completing their purchases. Streamlining the checkout to remove unnecessary steps and asking for only essential information can reduce friction and improve the overall user experience.

Best practices for optimised checkout process:

• Review your checkout process and eliminate any unnecessary steps or fields. Aim for a balance between collecting essential information and maintaining simplicity.
• Implement a progress bar to visually indicate how many steps are left in the checkout process, setting clear expectations for the customer.
• Optimise form fields — use predictive input and autofill where possible to reduce the amount of typing required, speeding up the checkout process for the user.

3. Eliminate mandatory sign-ups

Forcing customers to create an account before they can make a purchase is a significant barrier that can lead to increased cart abandonment. Here are a few suggestions:

• Offer a guest checkout option alongside the option to create an account, making it as accessible as possible.
• Instead of forcing account creation, highlight the benefits (e.g., faster future checkouts, order tracking) to encourage customers to sign up voluntarily.
• If customers choose to create an account, make the process as seamless as possible, potentially allowing them to do so after completing their purchase.

LEGO's checkout process exemplifies this approach. Customers are given the choice to continue as guests or to log in or register, which can streamline the process and reduce friction. This option caters to both first-time shoppers and those who prefer a quick checkout without the commitment of creating an account, thus enhancing the user experience and potentially increasing the likelihood of completing a purchase.

4. Enhance the mobile checkout experience

According to Statista, mobile sales reached $2.2 trillion in 2023 and now account for 60% of all e-commerce sales worldwide. It means optimising the mobile checkout experience is no longer optional — it's imperative. A seamless mobile checkout must accommodate the nuances of mobile navigation, prioritise speed, and minimise typing.

Key things to do:

• Implement responsive design. Ensure your checkout page automatically adjusts to fit the screen of any device, providing an optimal viewing experience across all platforms.
• Use digital wallets. Integrate payment options like Apple Pay, Google Pay, and PayPal, allowing users to complete their purchases with a single touch or click.
• Optimise form fields. Reduce the number of form fields and use autofill where possible to streamline the mobile checkout process.

Let’s take a look at Sephora’s mobile checkout. It offers plenty of payment options, including mobile wallets with quick payment flows. For those who prefer paying with a card, Sephora ensured autofill for card details fields, making the payment process simple and effortless.

5. Offer multiple payment options

Diversity in payment options caters to a global audience with varying preferences. The Baymard Institute found that 6% of cart abandonments occur due to a lack of preferred payment methods.

Here’s what you can do about it:

• Research your audience to understand the preferred payment methods of your target demographic and geographic market.
• Incorporate a wide range of payment options into your checkout process without cluttering the interface.
• Regularly review and update your payment options to include new and emerging payment technologies.

On its website, iHerb offers a decent selection of payment options. Besides, you can see the list of available payment methods before checking out. It is shown in site preferences and differs for each country.

6. Utilise social proof and customer reviews

Social proof, including user reviews and ratings, significantly impacts purchasing decisions. In a 2022 survey, 71% of US consumers agreed that a good Trustpilot score makes them more likely to buy from a brand. That’s why we recommend:

• Encourage satisfied customers to leave reviews and make these testimonials visible on your product pages and during the checkout process.
• Showcase customer photos and experiences with your products to enhance credibility.
• Highlight ratings. Use a clear and visible star rating system to provide quick and digestible feedback for potential buyers.

Kambukka prominently displays customer ratings and reviews on product pages and within the checkout flow, providing valuable social proof to prospective buyers.

7. Implement abandoned cart recovery strategies

Abandoned cart recovery is crucial, with email being a particularly effective channel. Moosend reports that abandoned cart emails have an average open rate of 40-45%. Here are some of the tips for recovering lost sales:

• Set up automated emails to remind customers of their abandoned carts, highlighting the items left behind.
• Tailor your abandoned cart emails with the customer's name and specific details about the products they viewed.
• Include a special offer or discount to entice customers back to complete their purchase.

For example, here’s an email the Asana Rebel app sends to the users who downloaded the app but didn’t purchase a subscription. It includes a time-limited discount offer to encourage immediate action.

8. Increase trust and security signals

Trust is a critical component of the checkout process. Most online shoppers avoid purchasing from websites they deem as insecure. That’s why it’s crucial to:

• Display security badges. Prominently feature SSL certificates and security badges on your checkout page.
• Ensure your entire website, especially the checkout process, is under HTTPS to encrypt data transfer.
• Clearly communicate your privacy policy and how customer data will be used and protected.

Patagonia's checkout process includes a clear message about the use of SSL technology to secure online transactions. They have placed an informational badge reassuring customers that their shopping experience is protected, and this security measure is visually reinforced by the closed padlock icon.

9. Personalise the checkout experience

Personalisation can significantly impact the checkout experience, leading to higher conversion rates. Epsilon research indicates that 80% of consumers are more likely to make a purchase when brands offer personalised experiences. Personalisation in the checkout process can range from displaying items based on past behaviour to personalised discounts.

But where to start?

• Use data from past purchases and browsing behaviour to tailor the checkout experience, such as recommending related products or pre-filling shipping information for returning customers.
• Provide special offers or discounts based on the customer's purchase history or membership status.
• Display dynamic content during the checkout process that resonates with the customer's preferences and previous interactions with your site.

Kiehl's personalisation approach enhances the online shopping experience by offering signed-in customers tailored incentives. These include free delivery, the ability to select complimentary samples, and a special gift redeemable with a promo code sent via email. This strategy creates a sense of valued personal touch, encouraging brand loyalty and increasing the likelihood of repeat purchases.

10. Optimise checkout page design and layout

The design and layout of your checkout page play a crucial role in minimising distractions and focusing the customer's attention on completing their purchase. A well-designed checkout page is not only aesthetically pleasing but also functional, reducing cart abandonment rates. That’s why:

• Ensure your checkout page is clean, with a clear and concise layout that guides the customer through the process step by step.
• Implement progress indicators to show customers how far they are in the checkout process and how many steps remain.
• Ensure your checkout pages load quickly to avoid losing customers due to impatience or frustration.

Measuring and monitoring the checkout conversion rate

Effectively tracking and understanding your checkout conversion rate is essential for optimising your e-commerce website's performance. Here are the tools you can use for this:

• Your payment partner dashboard. Many payment providers offer dashboards that display key metrics, including checkout conversion rates, successful vs. failed transactions, decline reasons, payment method preferences, etc.
• Google Analytics. A comprehensive tool that offers insights into user behaviour and conversion tracking. By integrating Google Analytics with your e-commerce platform, you can track the checkout conversion rate, analyse the customer journey, and identify where potential customers drop off. Additionally, Google Analytics can offer insights into traffic sources, page views, and user demographics.
• Hotjar. This tool provides qualitative data through heatmaps, user recordings, and surveys to understand how users interact with your checkout page. Hotjar can reveal where users experience confusion or hesitation, helping to pinpoint areas for simplification or enhancement in the checkout process.

Additional metrics to track

In addition to the checkout conversion rate, e-commerce businesses should keep an eye on several other vital metrics that provide deeper insights into the checkout process's effectiveness:

• Cart abandonment rate. As we mentioned earlier, it’s a crucial metric that measures the percentage of shopping carts created but not converted into purchases. A high abandonment rate can indicate issues in the checkout process or pricing strategy.
• Average Order Value (AOV). This metric helps track the average dollar amount spent each time a customer completes an order, offering insights into customer spending behaviour and product pricing strategies.
• Time to checkout. Monitoring the average time it takes for a customer to complete the checkout process can help identify friction points or technical issues that may be slowing down the process.
• New vs. returning customer conversion rate. Understanding the difference in conversion rates between new and returning customers can help tailor marketing strategies and improve the checkout experience for both segments.
• Bounce rate on the checkout page. It indicates the percentage of visitors who leave the site from the checkout page without completing a purchase. A high bounce rate could signal issues with the checkout design or functionality.

Advanced strategies and techniques for conversion optimisation with Corefy

Corefy offers a suite of features designed to enhance checkout conversion rates, with clients observing an increase between 10-25%. This section delves into how our payment orchestration platform empowers businesses with advanced strategies and techniques for conversion optimisation, supported by illustrative client stories.

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Instant and one-click payments

Corefy simplifies the checkout experience with instant and one-click payments, eliminating the need for returning customers to re-enter their payment details. This convenience significantly reduces checkout time, a key factor in boosting conversion rates, as it aligns with the modern consumer's expectation for speed and efficiency. A notable implementation saw a client enhance repeat customer transactions, highlighting the direct impact on customer retention and conversion uplift.

Custom payment routing strategy and cascading schemes

Corefy enables the creation of tailored routing and cascading strategies that consider a wide range of transaction parameters, from card issuer details to transaction amounts. This granularity in routing decisions ensures that each transaction is processed through the pathway with the highest likelihood of approval.

Our PSP client’s journey from a 56.2% conversion rate to an impressive 85.1% within a year underscores the power of a meticulously crafted routing strategy, combined with cascading and UX improvements, in achieving significant conversion rate growth.

Card bindings for higher acceptance rates

The card binding feature offered by Corefy significantly enhances payment acceptance rates by optimising transaction flows based on historical success. By binding a customer's card to the Merchant ID (MID) that previously processed a successful transaction, subsequent payments are streamlined, leading to improved approval rates. A practical application of this feature saw a forex client increase their acceptance rates, showcasing how smart routing based on past success can lead to tangible improvements in transaction success rates.

Payment team as a service

Payment team as a service is how we refer to the payment guidance and support we provide to our clients. Based on our payment expertise, we perform tasks varying from daily operations to forming feature requests, solving issues with providers, developing payment expansion strategies, and more.

Here’s a brief recap of a case that illustrates our capacity to pinpoint and resolve intricate problems, leading to substantial conversion rate improvements: a major PSP client faced a dismal 14% conversion rate with Google Pay due to issues in the provider’s interaction with the issuer. Corefy’s intervention rectified these issues and boosted the conversion rate to 84% after implementing recommended adjustments. More on this here.

Proactive monitoring with Corefy's Dashboard

By providing a comprehensive overview of transaction data, our Dashboard enables businesses to identify and address inefficiencies within their payment processes, allowing for continuous optimisation based on real-time performance. This works especially well with the payment team as a service, when our Account Managers monitor clients’ data to help them detect areas for improvement.

One example is the case of our ISO/MSP client. Their dedicated Account Manager noticed that transactions in a particular currency were unstable on their live graphs – the conversion was low due to many failed transactions. Together with th client, they analysed the transaction statuses and found the reason – they used only one payment provider for this currency, and this provider experienced downtimes. After connecting one more provider and configuring cascading rules, the number of failed transactions decreased.

Another case is our forex client. We noticed that their acceptance rates in the African region decreased. After a thorough analysis, we identified two weak points that needed attention. First, the payment page design needed simplification because the loading time was too long, leading to abandoned carts. The second step was helping our client choose the most relevant payment provider for this region to improve payment acceptance rates. Check the results on the graphs!

Conclusion

Enhancing the checkout process is a multifaceted strategy that requires attention to detail, a deep understanding of customer behaviour, and continuous optimisation. By implementing the strategies outlined in this guide, e-commerce businesses can significantly improve their checkout conversion rates, leading to increased sales and customer satisfaction. The key is to start small, test continuously, and always keep the customer's experience at the forefront of your optimisation efforts.