Multiple payment options will increase your online sales
Research from Internet Retailer found that in 2009, online sales in Europe reached more than €68 billion. In 2011, online sales surpassed €90 million and it is expected to reach more than €133 billion by 2015. In terms of travel, online spend per shopper increased from €1026 in 2006 to €1536 in 2011. E-Commerce spend will continue to grow and with it, so will customer needs and methods of payment.
Customers will leave if you don´t offer their preferred payment method
A 2010 report from Forrester Research found that 26% of shoppers would abandon a cart if their preffered method of payment was not offered. Further research has found that 50% would actually cancel the purchase.
A 2004 study commissioned by CyberSource10 shows the impact of additional payment options. The study, which polled 147 leading online retailers, found that those who have multiple payment options convert more visitors into buyers.
Another factor in increasing sales is repeat customers and customer loyalty. Repeat customers are those who had a great buying experience and expectations have been met. Amazon are a prime example repeat customers accounting for more than 30% of revenue .
Payment types used by online shoppers
Most E-Commerce sites offer credit card payment but other forms of payment have now made its way online, especially in Europe with micropayment services and invoicing. In a 2011 reported titled “Global Online Payment Methods 2011“, German based yStats.com found the following;
- Credit card payment accounts for market share of 40% in the US
- Invoice is the preferred online payment method in Germany with 60%
- Credit/ Debit Card is the most preferred payment method online in the UK
- Card is the most preferred online payment method in France, followed by Micropayment services
Klarna, a payment services solution have changed E-Commerce in Sweden by increasing invoicing from 5% market share to more than 30%. More than 8,000 stores now use Klarna in the Nordics and more than 4 million people have made purchases through Klarna.
Mobile payment is coming to a store near you. Be prepared
We are experiencing a huge cultural shift, one of which we have not seen before. Customers are constantly online and we need to make sure we accept methods not only on country of origin, but the devices used for shopping.
According to Emarketer, in less than 6 months of launching, 41% of ipad users were shopping with the device. Speaking from experience, within 2 months of purchasing an iPhone I had bought travel tickets.
Mobile visits increased from 5% to 14% of Hurtigruten’s global web traffic within the first six months of 2011 (mainly due to the NRK broadcast) and as of July, the number of mobile visits was surpassing 800 per day. An ideal solution for Hurtigruten is to allow bookings online within three days, giving customers the opporunity to book their voyage on route the port (2011 ended with 843 views per day via mobile).
More payment options help exceed your customers’ expectations
Hurtigruten currently offer credit card as a means of payment online. Based on the research, we will now implement bank transfer and invoicing. With the change in the way customers pay online, how long will it take before you increase your payment methods and online sales?