As retail customers increasingly turn digital, online checkout performance is critical.
By MediaStreet Staff Writers
Retailers have always understood that the checkout line is the most crucial step during their buying journey. When long lines welcome potential shoppers, over 40% of customers will avoid a retailer in the future. Unsurprisingly, this same negative impact from slow and frustrating online checkout experiences is affecting digital retailers.
Quantum Metric, a customer experience analytics firm, has been studying online shoppers and their extreme sensitivity to site performance during online checkout process. The study analysed different sectors including the financial, travel, automotive, entertainment, and retail industries.
So here’s the news. Customers shopping online are less likely to make a purchase with each fraction of a second slower that a website responds. Even a small degradation in page load time can cost companies tens of millions in lost annual revenue.
Not only are customers conducting more and repeated business on faster sites, customers are also willing to pay more for the privilege. According to a survey conducted by Oracle, 44% of customers are willing to pay more than a 5% premium for better customer experiences.
Online retailers are turning to various tools to provide browser performance monitoring that helps troubleshoot why sites are slow. With insights into slow content delivery networks (CDN), server latency, or sluggish browsers and devices, retailers can now address the root causes of what’s negatively impacting customer experiences and rectify the issues.
Why does this all matter? Because retailers are continuing to see revenue shift from physical stores to digital stores. This means that online retailers must get to grips with their customers’ online digital struggle. Research shows that the online customer experience is the top innovation project for 2017. It is recommended that the purchasing experience should be the highest spend area for many enterprises as competition heats up.
Says Mario Ciabarra, Quantum Metric’s CEO, “It’s difficult for eCommerce retailers to comprehend that when a site is just a few hundred milliseconds faster, that it could lead to millions in additional revenue. We are having tremendous success empowering online retailers with the data that shows them what performance truly costs, allowing them to spend their time on solving problems that will ultimately improve their business.”