Erin Yeh

Optimising Checkout to Boost Revenue by 116%

The UX work on Rendition Design's website identified a low checkout conversion rate as the main issue, significantly below the industry standard. The primary cause was the limited payment options, which only supported PayPal in USD. The proposed solution was to introduce more payment methods, such as credit card payment or Apple Pay, aiming to increase the checkout conversion rate to the industry average of 45%. This could potentially result in a total revenue increase of ~116%. The solution was successfully implemented in early 2024.

Client

Rendition Design

Services

UX Design

Year

2023

Role

UX Designer

Roles and Responsibilities

  • Collaborating directly with the client to identify and address key UX challenges on their website

  • Analysing user behaviour and site performance to pinpoint issues affecting checkout conversions

  • Providing strategic UX solutions aimed at improving user experience and increasing conversion rates

  • Delivering recommendations focused on enhancing the payment process and optimising the overall website experience

The Problem

The client wants to improve the conversion rate on the website to get more sales.

The client approached me with the issue, "I want to improve the conversion rate on the website so that I could get more sales." The challenge here is to pinpoint which specific conversion rate needs enhancement. We also need to explore other potential enhancements on the website to increase the conversion rate, potentially boosting sales and revenue.By checking Google Analytics, we found that the website's main issue is a low checkout conversion rate.

Low Checkout Conversion

Low Checkout
Conversion

From September to November 2023, the average rate was only 20%. This means that only about 20% of users who began the checkout process actually completed a purchase. This performance falls significantly below the industry standard, which generally varies from 29.5% to 61.6%, averaging at 45%. Any rate below 29.5% places the business among the bottom 20% of stores.

Why This Problem Matters Now

A 20% checkout rate signals immediate action.

After analysing various conversion rates, it's evident that the average add-to-cart conversion rate is 52%, and the average cart-to-checkout conversion rate is 75%. These are high rates, signalling strong performance. However, the checkout conversion rate is only 20.80%. This low rate suggests possible issues with payment and delivery options, as well as usability issues during the checkout process. Thus, this problem needs immediate attention.

52%

Add-to-cart Conversion

75%

Cart-to-checkout Conversion

20%

Checkout Conversion

Understanding User Behaviour

What vintage car buyers want: trust, quality, and simplicity.

Through Google Analytics and discussions with the client, I discovered that their user base consists primarily of male vintage car enthusiasts aged 20 to 50, with a particular focus on specific BMW vintage car series. The website attracts a global audience, with 90% of users accessing it via mobile devices.

Our user base's shopping choices are influenced by several key factors:

  • Quality is their primary concern

  • Price is less significant due to their financial means

  • They value a simple shopping experience. Given the limited modification options for their vintage cars, once they locate a suitable product, they focus on verifying the seller's credibility

Thus, their shopping decisions are based on the product's necessity, accessibility, and credibility of the business and its products. It is also worth noting that the vintage car community heavily relies on word-of-mouth and online communities for product discovery.

Based on these insights, let's make some assumptions! When the users arrive at the website, they ask themselves:

  • Does this site offer products for my car series, and do I need them?

  • Is this website trustworthy?

  • How is the quality of their products?Is the purchasing process straightforward?

Through Google Analytics and discussions with the client, I discovered that their user base consists primarily of male vintage car enthusiasts aged 20 to 50, with a particular focus on specific BMW vintage car series. The website attracts a global audience, with 90% of users accessing it via mobile devices.

Our user base's shopping choices are influenced by several key factors:

  • Quality is their primary concern

  • Price is less significant due to their financial means

  • They value a simple shopping experience. Given the limited modification options for their vintage cars, once they locate a suitable product, they focus on verifying the seller's credibility

Thus, their shopping decisions are based on the product's necessity, accessibility, and credibility of the business and its products. It is also worth noting that the vintage car community heavily relies on word-of-mouth and online communities for product discovery.

Based on these insights, let's make some assumptions! When the users arrive at the website, they ask themselves:

  • Does this site offer products for my car series, and do I need them?

  • Is this website trustworthy?

  • How is the quality of their products?Is the purchasing process straightforward?

Through Google Analytics and discussions with the client, I discovered that their user base consists primarily of male vintage car enthusiasts aged 20 to 50, with a particular focus on specific BMW vintage car series. The website attracts a global audience, with 90% of users accessing it via mobile devices.

Our user base's shopping choices are influenced by several key factors:

  • Quality is their primary concern

  • Price is less significant due to their financial means

  • They value a simple shopping experience. Given the limited modification options for their vintage cars, once they locate a suitable product, they focus on verifying the seller's credibility

Thus, their shopping decisions are based on the product's necessity, accessibility, and credibility of the business and its products. It is also worth noting that the vintage car community heavily relies on word-of-mouth and online communities for product discovery.

Based on these insights, let's make some assumptions! When the users arrive at the website, they ask themselves:

  • Does this site offer products for my car series, and do I need them?

  • Is this website trustworthy?

  • How is the quality of their products?Is the purchasing process straightforward?

Look Into The Data

Strong cart engagement, but checkout falls short.

After gaining a thorough understanding of the users, I analysed data from Google Analytics covering September to November 2023. This period was chosen due to the absence of earlier business records. The primary concern of the client is improving the website's conversion rate, so I focused on relevant data to identify which specific conversion rate required enhancement.

Key Insights:

  1. Add-to-cart conversion rate of 52% - This high rate indicates strong performance, aligning with previously discovered industry attributes. Users often add products to their cart first if they fit their specific car series.

  2. Cart-to-checkout conversion rate of 75% - This high rate suggests that users perceive the website as trustworthy, as they typically verify the business's credibility before deciding to purchase.

  3. Checkout conversion rate of 20.80% - This rate is significantly lower than the average 45% and the normal range of 29.5%-61.6%. This drop-off at the final stage of the purchase process suggests potential issues with the checkout journey's accessibility, such as payment options, delivery options, or other usability problems.

Key Insights:

  1. Add-to-cart conversion rate of 52% - This high rate indicates strong performance, aligning with previously discovered industry attributes. Users often add products to their cart first if they fit their specific car series.

  2. Cart-to-checkout conversion rate of 75% - This high rate suggests that users perceive the website as trustworthy, as they typically verify the business's credibility before deciding to purchase.

  3. Checkout conversion rate of 20.80% - This rate is significantly lower than the average 45% and the normal range of 29.5%-61.6%. This drop-off at the final stage of the purchase process suggests potential issues with the checkout journey's accessibility, such as payment options, delivery options, or other usability problems.

Key Insights:

  1. Add-to-cart conversion rate of 52% - This high rate indicates strong performance, aligning with previously discovered industry attributes. Users often add products to their cart first if they fit their specific car series.

  2. Cart-to-checkout conversion rate of 75% - This high rate suggests that users perceive the website as trustworthy, as they typically verify the business's credibility before deciding to purchase.

  3. Checkout conversion rate of 20.80% - This rate is significantly lower than the average 45% and the normal range of 29.5%-61.6%. This drop-off at the final stage of the purchase process suggests potential issues with the checkout journey's accessibility, such as payment options, delivery options, or other usability problems.

Solition Ideation

Expanding payment options to drive conversions.

I have analysed the checkout process, particularly focusing on accessibility, to identify the main reason for the low checkout conversion rate.

The checkout process is straightforward and demands minimal input from customers. However, the limited payment methods present a problem. The website solely supports PayPal in USD.

Why is this bad?

  1. It increases costs for customers due to currency conversion fees and fluctuating exchange rates, potentially discouraging international sales.

  2. Dependence on just PayPal also cause trust issues in regions where it's not widely used. Enhancing payment options and supporting multiple currencies could boost customer experience.

Solution Validation

Customer interviews reveal key checkout improvements needed.

To further validate, the client offered me the opportunity to speak with some existing customers from the business. I conducted six interviews to gain qualitative insight into the current user experience and their shopping behaviour.

Interview Insight 1

Users do not prioritise the aesthetics of the website as long as it is intuitive and trustworthy - all interviewees mentioned that they do not need the website to be overly embellished, as long as everything is clear.

Interview Insight 2

The limited payment method has prevented users from purchasing - two interviewees refrained from making past purchases because they did not have a PayPal account, and setting one up would have taken time.

Interview Insight 3

Additional payment methods would enhance the checkout experience - four interviewees mentioned Apple Pay as a preferred option, and all would like to have the option to pay by credit card.

Interview Insight 4

Users are satisfied with the distraction-free, straightforward website/mobile experience.

Final Solution & Outcome

Client implements new payment options to boost revenue potential.

Considering the insights gained, the final proposed solution involves adding at least one more payment option during the checkout process, such as credit card payment or Apple Pay. This will address the issue of a low checkout rate, leading to more successful sales.

Implementing the proposed solution could potentially elevate the website's checkout conversion rate to the industry average level of 45%. This could result in a total revenue increase of ~116%. Even with a more conservative estimate, the website could still potentially boost its checkout conversion rate to 29.5% (which falls within the typical range of 29.5% to 61.6%). This could lead to a total revenue increase of 42%.

The client has expressed satisfaction with this solution and is eager to implement it on the website. As the solution involves third-party payment options, it will require some time for implementation. At the beginning of 2024, the business successfully launched a new website version featuring various payment options.

Takeaways

The key insight from this project was the importance of clear and effective communication with stakeholders, especially when they may not fully grasp website data or technical specifics. This required explaining the specific conversion rate that necessitated improvement to the founder, thereby aligning business objectives and requirements. Addressing the client's views on the website's appearance underscored the necessity to manage stakeholder expectations and build a mutual understanding of current strengths and areas needing enhancement.