Sell more with payments

tomorrow’s transac,ons today

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Sell more with payments Presenta,on World e-‐Commerce Summit Berlin

Tom Rijks – 22 May 2015

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2 Heisessie OV betalen 2.0 – Februari 2015. © Innopay BV. All rights reserved.

2

•  Innopay: innova,on experts since 2002 • >20 consultants • Three Prac,ces: Payments, Digital Iden7ty, e-‐Business

• Services: Strategy, Co-‐crea7on, Transforma7on

• Member of EBA, EPCA and ECP

Brief introduc,on …

Tom Rijks Payments Lead

3 How to sell more with Payments – Tom Rijks – 22 May 2015. © Innopay BV. All rights reserved.

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Ques,ons to be answered today

1.  What effect do payments have on online conversion?

2.  What payment solu,ons are available to increase online conversion?

3.  Have they been applied in reality? And do they work?


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Payments materialise the transac,on SH

OP

PHAS

E

ORIENTATION SELECTION TRANSACTION DELIVERY CUSTOMER CARE SH

OP

PHAS

E


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KPI for the online transac,on experience

ORIENTATION SELECTION TRANSACTION DELIVERY CUSTOMER CARE SH

OP

PHAS

E

Bounce rate (%)

Average CPC

Max CPS

Product clickers (%)

Abandonment Basker Rate

Total IT Costs / Turnover (%)

Tot. Product Content Cost/Turnover (%)

Order completeness (%)

Total Return Percentage (%)

Average Delivery Cost / Package

Average Return Cost /

Package

Online Turnover Growth Y/Y (%)

Turnover/FTE

Online Turnover / Total

Turnover (%)

EBITDA Margin (%) Conversion Ra7o (%)

Average # of items

PSP Costs / Turnover

(%)

Source: Adapted from Thuiswinkel.org/Ecommerce Founda=on, 2015


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How big is the challenge?

Conversion rate e-‐commerce companies in Q4 2014 50% Conversion loss between basket and complete check-‐out

Conversion rate Q4 2014

Global 2.84%

USA 3.15%

UK 2.39% Source: Monetate, 2015

Source: Smart Insights, 2015

Conversion rate Visit to add to basket

Conversion rate Visit to check-‐out to sale

8% 4%


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Reasons to abandon the transac,on

Source: EConsultancy, 2011


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The payments landscape used to be so simple

A Agree

P Pay

D Deliver

R Risk

Point of Sale transac,on


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Source: “Understanding buyer and seller behaviour for improved payment product development”, C. Liezenberg, D. Lycklama, H. Smorenberg. Journal of Payment Strategy & Systems, April 2007

Point of Sale transac,on Internet/Mobile transac,on

A Agree

P Pay

D Deliver

R Risk

RA RP

RD Context:

Relation (r) Product (p) Location (l) Timing (t)

A Agree

P Pay

D Deliver

R Risk

e-‐Commerce unbalances the risks


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Leading to endless payment methods


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Collabora,ve research 26 retailers and payment experts PA

RTICIPAN

TS

Wiki: www.shopping2020.nl/Betalen


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12

Source: Expertgroep betalen, 2014

Pay any =me anywhere

Changing check-‐out – know your customer

Check-‐out is more than just

payment

Changing payment

infrastructure

Payment is more oPen

designed on EU level

VISION

on Payments in 2020

1 2 3 4 5

Five trends towards 2020 which will change the payment environment


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Payment building blocks

Identification

Authentication

Authorisation


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Unbundling authen,ca,on and authorisa,on

More visibility & relevance for

consumers and companies

Financial transacCon

VerificaCon of idenCty

Less visibilty & relevance for consumers and

companies

Full service focus

Digital iden7ty focus

Payment focus

Source: Innopay


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Level of sop

his,ca,o

n of ID

/trust

Seamless shopping & payment experience

Check-‐out

Source: Innopay

Changing check-‐out: Towards a truly seamless shopping and payment experience


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Check-‐in

Check-‐out

Level of sop

his,ca,o

n of ID

/trust

Seamless shopping & payment experience Source: Innopay



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Check-‐once

Check-‐out

Check-‐in

Level of sop

his,ca,o

n of ID

/trust



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R 0 G 135 B 255 Check-‐on/off

Check-‐out

Check-‐in

Check-‐once

Level of sop

his,ca,o

n of ID

/trust




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Transac7on Selec7on Delivery Customer Care Orienta7on

Check out

•  My name is John •  I’m really John •  I’m 18+

•  I can pay •  I approve this payment •  This is my address

Early authen,ca,on can enable beqer customer experience

Orientation Selection Delivery Customer Care Transaction

Check in

•  My name is John •  I’m really John •  I can pay •  I’m 18+

I confirm this order

I confirm this address

Source: Innopay


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BoA survey amongst 200 CMO of major retailers in the US reveals poten,al of CLM*

*Cardlinked marke,ng & offering (CLM): combining purchase behavior and marke,ng


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Logical effects on conversion rates

Source: EConsultancy, 2011


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Key findings

1.  Payments can be an expensive online conversion killer as it places high barriers late in the shopping experience

2.  Unbundling authen,ca,on and payment provides a logical solu,on to eliminate the barriers

3.  First movers sucessfully create a seamless shopping experience and collect valuable customer informa,on

Should you re-think your transaction experience?

tomorrow’s transac,ons today

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Contact us

Tom Rijks, [email protected], +31 6 41 866 717

We look forward to it…

Marketing

Sell more with payments