Satisfying your customers' preferences drives sales.
To gain the most from the continued growth of ecommerce, pay attention to what your customers want.
Forrester Research Inc. released the most recent, long-term estimation regarding the growth rate of the U.S. online retail sales. By 2018, it is expected that the size of online retail will increase to $414 billion from $263 billion in 2013, based on a compounded annual growth rate of 9.5%. While in a previous study, Forrester estimated the size of online retail for 2017 to $370 billion, their most recent study increased the figure to $385 billion.
The study states that this growth is influenced positively by the increasing use of tablets and mobile devices for purchases. Also, consumers that are part of Gen Y (25-33 years old) have just entered into the periods of their lives when they are most active in terms of purchasing behavior. Due to their long-established familiarity with the online environment, they are expected to do most of their shopping online, with an average estimated spending of $563 in three months.
Online retailers need to respond to the expectations of customers, particularly when it comes to payment options. Of
A recent consumer payment study conducted by Total System Services provides a snapshot of these expectations. The results of the survey show that consumers continue to prefer credit cards, with 48% of respondents expressing their preference for this payment method.
That means 52% of buyers want to pay you using a method other than cards.
The most popular alternative payment option for US buyers is electronic checks. Millions of Americans regularly pay for goods and services with echecks.
When you accept echecks you get more sales from buyers that don't have cards, are maxed out on cards, or who simply prefer to pay you with an electronic check.
Echeck transactions are not subject to fraud in the same way as cards. Providing an extra level of safety for customers.
Satisfy your customers desire for alternative payments. And get more sales.
New payment technologies, such as those facilitated by mobile devices and social media, present interest to consumers. When asked what payment-related features they would like to use on a mobile device, the highest ranked was those that prevented fraud, followed by rewards/loyalty features, and M-Wallet.
The study provides some insight into the connection between social media and payment behavior. While 53% of respondents stated that they do not pay attention to ads promoted via social media, 25% of them said that they decided to make a purchase solely based on the social media activity of a friend. These findings regarding the payment behavior of online shoppers can assist merchants in creating marketing strategies that can help them maximize their profits.
Catering the the buying habits and preferences of online shoppers is simply smart business.
Are you interested in alternative payments which cater to the preferences of online buyers?