This post is contributed by Janis Lanka (@janislanka, who manages front-end development for Elastic Path Software.

A little while back, I wrote on Elastic Path’s Grep Community blog about our decision to change to a two-page checkout process. We piloted this checkout process on the Hockey Canada Store with the main goals being to reduce abandonment and to increase conversion. The results were extremely positive, but we weren’t content to sit on our laurels. So when we started re-working the Official Vancouver 2010 Olympic Store, we challenged ourselves to take it to the next level — and we cut the checkout process down to just single page.

Structurally, the new single-page checkout looks very much like the two-page checkout, with shipping information first, followed by billing and confirmation.

With A/B split testing, 50% of traffic was redirected to the original checkout, while the other 50% was served the new single-page checkout. After only 300 transactions, the winner was clear and we stopped the experiment after 606 transactions. Google Website Optimizer concluded that the single-page checkout outperformed the out-of-the-box checkout by a whopping 21.8%. But what does that 21.8% really mean?

Control: Original, Multi-Step Process

(Click to enlarge, will open new page)

Treatment: Single Page Checkout

The option to create an account after checkout is offered after the order is completed:

The Findings

It’s important to keep in mind that GWO only counts goal conversions and does not link to any ecommerce data in Google Analytics. With a few little hacks, we were able to pass on each test group to Advanced Segments on Analytics for both checkout flows and gather valuable ecommerce data:

• Successful completion rate for the entire checkout process increased by 257.26%.
• Overall site conversion rate increased by 0.54%.
• We also observed some unexpected improvements during this experiment, like an increase of 8.54% in the average order value!

While these kinds of numbers are impressive, they should not be used as the sole indicator of how single-page checkout performs. These are the improvements that we observed when changing from the standard four-page checkout to a single-page checkout process on the Vancouver 2010 Olympic Store. Your mileage may vary, depending on your product, target market, et cetera. There’s no silver bullet checkout process that works best for all business models. Doing your own A/B split testing will give you a better idea of what kinds of numbers you can expect.

One of the tips I shared in my interview with Shawna Fennell of eComExperts last week was to position yourself as a one-stop-shop this Christmas to boost your AOV (Average Order Value). The idea is to sell the customer on the idea that he or she can shop for everyone on the Christmas list (or as many as possible) in your store. The problem is not everyone has figured out what gifts they should get – a lot need some help. Gift finders by gender, age, recipient type and interests are a great help to customers, and can certainly help convert browsers into satisfied (and relieved) buyers.

Gift finders can be interactive tools (think of a stepped-survey or wizard) or simply special categories like “Gifts for Him” or “Gifts for Her.”

Toys R Us stepped gift finder

Target.com Gift Categories

Most sites that offer these do a great job showing them off on home pages and in navigation menus, but they fail to carry the message through to the cart summary. Instead of a vanilla “Continue Shopping” link, why not link back to gifting tools? Remind your customer about your one-stop value proposition!

Test

Testing Hypothesis: Including a call-to-action for the gift finder or gift categories in the cart summary will remind customers to keep shopping for other gifts.

I’ve never seen this tactic in practice, so let’s mock up what a test could look like for Target.com:

Control: Target’s actual cart summary page

Treatment A: Continue Shopping link below item details

Treatment B: Continue Shopping links above item details

Treatment C: Link to gift finder (button) with text “Gifts for everyone on your list!”

Images too small? Quick tip: hit CTRL+ to zoom to enlarge the images a bit…

What to measure?

To determine success, don’t just measure conversion rate improvement. Track clicks on the each call-to-action, items per sale, average order value and profit per sale.

One of the “quick wins” I recommend to retailers in improving their conversion rates by reducing cart abandonment is to explain what the credit card security code is, why it’s asked for and where to find it. We take it for granted that many people don’t know the “security code” or CVV2 (card verification value) asked for in the checkout process can be found on the backside of their credit cards. CVV2 is used to reduce fraud for card-not-present transactions. (Not all online retailers require the CVV2 so this tip only applies to retailers who do).

Often the checkout form looks like this, with no explanation of what the security code is, where to find it and why it is asked for:

I usually suggest using a link that says “What is this?” with more information in a mouseover. I recently spotted AT&T doing one better — showing exactly where to find the number using an image:

Remember that different cards have different CVV2 locations, so mention that.

This tactic could easily be saving AT&T millions in sales each year. Why don’t you try it?

Another reason customers may hesitate to provide the CVV2 code is the erroneous belief that they are actually risking their personal information more by providing the super-secret code. They feel like you’re not just asking for an email address but a password too!

Of course, the fact you’re asking for the CVV2 code is proof you value their security – you’re preventing anyone who’s stolen their card number from making a fraudulent purchase. But customers don’t see it that way. Reassure them that the CVV2 code is NOT stored in a database and is only used in card-not-present transactions for preventing fraud.

These 2 point-of-action assurances (showing the CVV2 visually and reassuring CVV2 is not stored in a database) should have a positive influence on your conversion rate if you are required to ask this information from customers.

This article was originally posted April 7, 2008 and as one of Get Elastic’s most popular, is worth a second look. This post was written by Justin Palmer of Palmer Web Marketing

Losing Customers at the Register: 12 Checkout Blunders

We’ve all heard the adage, “You’re only as strong as your weakest link.” For many e-tailers, both large and small, the weakest link lies in the checkout process. Mistakes at this critical juncture are costly and unnecessary. Below, I’ve gathered 12 of the most common mistakes I see with checkouts.

1. Unfriendly Credit Card Errors

Getting your credit card declined is always an embarrassing situation, even online. How gracefully does your checkout handle these errors? Unfortunately, website error messages tend to be written by programmers, who don’t always consider the needs of customers.

When handling these errors, suggest a probable solution. If the error is due to an invalid CVV code, show customers a picture of where the code can be found on the card. Is the error due to a billing address mismatch? Suggest having the customer check their credit card statement to ensure their billing address matches. Most importantly, display your customer service contact information where customers can get additional help.

2. Login

Many customers detest the thought of having to remember another username and password. In addition to this concern, you risk returning customers not being able to remember their login information on a subsequent purchase. Sure, you may have a password lookup feature, but what if their email isn’t working or is inaccessible at the moment? For these reasons, offer your customers a guest checkout option that doesn’t require account creation. After the order, you can always ask if they want to create an account for next time.

3. Default Credit Card Type Selected

This is one of my biggest pet peeves. Now I consider myself fairly experienced with placing online orders, since I work in the eCommerce industry. Yet I don’t know how many times I’ve entered my Mastercard number with the default Visa card option pre-selected, causing my card to be declined. In their hurry to complete a task, people tend to skip fields that are already populated with data. For this reason, require your customers to choose their credit card type. Better yet, automatically detect the credit card type based on the number (see Paypal’s checkout for an example of this).

4. Cancel Buttons

I always chuckle when I see a “Cancel” button juxtaposed next to the “Submit Order” button. Don’t make it too easy for your customers to abandon their order. A cancel button is the equivalent to asking “Are you really sure you want to buy it?”

5. Up-selling or Cross-selling

There’s a time and place for cross-selling, but it’s too risky at checkout. Too many options can send a customer into a paradox of choice, leading to an abandoned cart. In general, once someone has moved past the shopping cart, it’s time to stop marketing and close the sale.

6. Disclaimers, Explanations, and Warnings

Recently, I reviewed an eCommerce site for an online gift store. Right before clicking the “Finalize Order” button, I was casually informed my “IP address is being recorded for security purposes.” Now honestly, is that disclaimer really necessary? While it may deter fraudsters, (though I doubt it), such needless information will only raise red flags in minds of privacy conscious customers. Other needless disclaimers include “Clicking order button more than once will result in double charges” (maybe you should fix this issue rather than explain it!) or “Products subject to availability” (maybe you should display accurate inventory online!?) As a general rule, keep disclaimers on a need-to-know basis. If it causes visitors to second guess their purchase decision, remove it.

7. Insecure Page Errors

This is possibly one of the most preventable checkout mistakes that arises due to technical issues with secure pages (https://) containing non-secure elements (http:// images, javascript files, etc.). When this happens, some browsers such as Internet Explorer, love to warn customers that “this page contains insecure elements.” When you’re about to enter your personal payment info, this is not a comforting message. To prevent this, make sure you run through your own checkout frequently, with your browser set to display these warnings.

8. Only One Payment Type

Don’t you hate when you don’t have cash and a store doesn’t take credit cards? Many customers feel a similar frustration when a site only takes credit. Alternative payment forms have become almost an expectation these days, with Paypal, e-Checks, BillMeLater, and Google Checkout leading the way. Adding an additional payment method can go a long way in preventing abandoned shopping carts.

9. Dead End Receipt Pages

It’s a shame so many shopping sessions end on the receipt page. Rather than wasting your order confirmation page with a conclusive “Thanks for ordering!” message, why not continue to engage your customers? Consider adding a tell-a-friend form, displaying customer service FAQs, or asking customers to complete a survey.

10. Hiding Additional Charges

Nobody likes surprise charges at the last minute. Make sure that all shipping related charges and taxes are displayed early and often.

11. No Prominent 1-800 Number

People like buying from people, so customers always like to know someone is immediately reachable if they have a problem. While not every customer who sees your 1-800 number will call, just having one creates a sense of trust.

12. Product Stockouts

Oh by the way, it’s out of stock! Surprisingly, a disturbing amount of online checkouts wait until the customer has initiated the buying process before informing them about stockouts. Product availability should always be visible on the product pages and the shopping cart. Any later than that, you’re going to anger your customers.
Avoiding mistakes on your checkout is eCommerce 101. Don’t just take my word for it though, test these suggestions for yourself. With tools such as Google’s Website Optimizer, performing A/B tests on your checkout are surprisingly easy and inexpensive.

About Justin Palmer

Justin Palmer writes the Palmer Web Marketing blog, which covers topics such as eCommerce, SEO, and website usability. Palmer Web Marketing also offers personalized SEO recommendations and eCommerce Site Review services.

“New visitors” account for a large percentage of an ecommerce site’s traffic. It’s not unusual for a site to have 70% new visitors, with 70% of these new visits landing on a page other than the home page.

New visitors that arrive on a product page through search engines, paid search ads, comparison engines or affiliate links may be ready to buy today (and may be comparing your site against a few other options). With no prior awareness of your website or company – addressing fears, uncertainties, doubts and dealbreakers (FUDDs) about doing business with you is even more critical than if you’re a well known site business Target or Toys R Us. Common FUDDs include:

• If there’s a problem with my order, can I return it? Will it be a hassle to return it?
• Is this the best price I can get?
• Can I trust that the product is as shown in pictures? (Sizing, colors, quality etc)
• Is this the best website to do business with?

Some anxiety is felt earlier in the process – when evaluating a product or price, some is felt when deciding which e-store to purchase from and some is felt when deciding to go through with the purchase.

Anxiety on Product Pages

Many product pages do not address concerns about “why should I buy from this site?”:

If a site does link to information about value propositions like customer service policies and guarantees, links are often hiding in navigation menus (top, footer or sidebar) or otherwise out of the customer’s eye path. Don’t expect customers to find these assurances on their own. Consider incorporating them as part of the product information:

Another problem with links to information is they point to actual pages which hijack customers off the product page. Rollovers and pop-up windows to show more detail keeps the customer on the page.

Anxiety on Cart Summary Page

Add-to-cart is not a commitment to buy. Some people use the cart as a bookmark to collect things they like as they surf your site (especially if your wish list requires registration). And there are many other reasons why customers may abandon a cart – including anxiety about privacy and security.

Invesp Consulting posted an article including some stats about how important privacy and security are to customers:

When you consider that recent studies of the past few years suggest that 84% of polled Internet shoppers don’t think that online retailers are putting enough effort into protecting customers (Forrester Research, Inc), 75% of customers left sites because they didn’t feel safe (Internet Retailer), 90% would have completed sales if they saw security logos on the website (Internet Retailer) and 70% of online shoppers will not purchase from websites without viewing security seals or logos, the importance of website security should be glaringly obvious.

In our Ecommerce Checkout Report (2007) we found 56% of the top 100 retailers did not display a security badge (such as Verisign or McAfee Secure) in the checkout.

Even if you don’t use a branded security product like Verisign or McAfee (well-known sites may not want to advertise for other companies), a prominent lock icon that communicates “this site is secure” is crucial. For example, Walmart:

Unfortunately Walmart addresses security anxiety on the first step of checkout but not on the cart summary page near the “Continue to Checkout” call-to-action. Before a customer decides to proceed with a purchase, any anxiety about security and privacy is experienced before hitting “Continue” and should be addressed before checkout begins.

Perhaps Walmart’s brand reputation is strong enough that most people will continue to checkout without blinking an eye — but no e-tailer should ever take this chance.

The key is to address FUDDs when and where the customer experiences anxiety in the purchase process. Address concerns about the product’s condition, availability, return-ability, price, quality and your business’ reputation on product pages, and privacy/security on the cart summary and checkout. A next step would be to test the placement and/or wording of your assurances for optimal conversion rates.