A regular dose of D2C-centric resources & tools for Growing Brands, Startups & Entrepreneurs.

A brand is only as good as its Checkout. At least during peak holiday sales.

Hence monitoring and mitigating losses, both potential and actual, during the checkout process is crucial for ecommerce brands.

Your Checkout & Your Data

Because one has to understand before fixing/optimising something!

Let’s checkout the TOP 7 most influential data points that brands utilise on a daily basis.

1. Payment Gateway Success Rate:

Definition: The percentage of successful transactions compared to total attempted transactions.

Example:

Insight: Monitoring payment gateway success rates allows brands to identify potential revenue losses due to failed transactions and optimise payment methods accordingly.

2. Address Verification Success:

Definition: Percentage of addresses successfully verified during checkout to prevent delivery issues.

Example:

Insight: Monitoring address verification success helps reduce losses caused by incorrect or incomplete shipping information.

3. Return Rate vs. Sales:

Definition: Percentage of total sales that result in returns.

Example:

Insight: Brands can track return rates to understand potential losses due to returned items and make necessary adjustments.

4. Conversion Rate by Device:

Definition: The percentage of visitors who complete a purchase, segmented by the type of device (e.g., desktop, mobile, tablet).

Example:

Insight: Tracking conversion rates by device helps brands identify potential losses on specific platforms and optimise the user experience accordingly.

5. Average Order Value (AOV) by Location:

Definition: The average value of orders placed, segmented by the customer's location (e.g., city, state).

Example:

Insight: Monitoring AOV by location allows brands to identify potential revenue variations in different regions of India.

6. Coupon Code Usage:

Definition: Monitor the number of coupon codes applied during checkout and their impact on revenue.

Example:

Insight: Brands can assess the effectiveness of coupon code promotions and their impact on potential revenue losses.

7. Payment Failure Recovery:

Definition: Track the percentage of failed payments that are successfully recovered through follow-up communication.

Example:

Insight: Monitoring payment failure recovery rates helps mitigate potential revenue losses due to payment issues.

Your Checkout & Other Brands

Having access to data from 450+ D2C brands in India, especially those in similar industries, can provide valuable insights for monitoring and optimising checkout-related metrics.

Let’s checkout the TOP 5 most influential data points that brands refer to.

1. Checkout Abandonment Benchmarks:

Definition: Compare your checkout abandonment rates with industry benchmarks from similar brands in India.

Example:

Insight: Benchmarking your checkout abandonment rate against similar brands in India can help you identify potential losses compared to industry standards.

2. Preferred Payment Methods by Industry:

Definition: Analyse the most commonly used payment methods by customers within your industry and adjust your checkout options accordingly.

Example:

Insight: Understanding preferred payment methods in your industry can help you minimise potential losses by offering the most popular options.

3. Average Checkout Duration by Industry:

Definition: Compare the time customers spend in the checkout process with industry averages for similar brands.

Example:

Insight: Monitoring checkout duration relative to industry averages can help identify potential losses due to lengthy checkouts.

4. Customer Journey Analysis:

Definition: Examine the stages of the customer journey, from landing on the website to completing a purchase, and identify potential drop-off points.

Example:

Insight: Analysing the customer journey can pinpoint potential losses at various stages, allowing for optimization.

5. Cross-Brand Checkout Insights:

Definition: Collaborate with similar brands in your data-sharing network to gain insights into checkout trends and potential losses - greatly helps in cross-selling during checkout.

Example: Share anonymised data on product performance in categories such as location/age group/holiday etc.

Insight: Leveraging this data helps increase overall AOV & conversion rate. Find compatible brands, and maximise potential.

In conclusion…

Optimising your checkout process is paramount for Indian brands in the ever-evolving e-commerce landscape!

1. Access to data from a network of services (pre-purchase to post-delivery), customization options, and a focus on key metrics can significantly contribute to reducing potential losses and enhancing overall revenue generation.

2. Benchmarking, sharing insights, and customising various aspects of the checkout system, businesses can adapt to the diverse needs and preferences of their consumers.

3. The result is a more seamless, user-friendly, and efficient checkout experience that not only minimises potential losses but also fosters customer loyalty and growth in the dynamic Indian market.

That’s the end of our talk on “Your Brand & Your Checkout”...

☕ See you on the next coffee date!

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