Sell more with payments
Transcript of 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.
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• 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?
4 How to sell more with Payments – Tom Rijks – 22 May 2015. © Innopay BV. All rights reserved.
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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
6 How to sell more with Payments – Tom Rijks – 22 May 2015. © Innopay BV. All rights reserved.
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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
10 How to sell more with Payments – Tom Rijks – 22 May 2015. © Innopay BV. All rights reserved.
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Leading to endless payment methods
11 How to sell more with Payments – Tom Rijks – 22 May 2015. © Innopay BV. All rights reserved.
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Collabora,ve research 26 retailers and payment experts PA
RTICIPAN
TS
Wiki: www.shopping2020.nl/Betalen
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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
13 How to sell more with Payments – Tom Rijks – 22 May 2015. © Innopay BV. All rights reserved.
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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
Changing check-‐out: Towards a truly seamless shopping and payment experience
17 How to sell more with Payments – Tom Rijks – 22 May 2015. © Innopay BV. All rights reserved.
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Changing check-‐out: Towards a truly seamless shopping and payment experience
Check-‐once
Check-‐out
Check-‐in
Level of sop
his,ca,o
n of ID
/trust
Seamless shopping & payment experience Source: Innopay
18 How to sell more with Payments – Tom Rijks – 22 May 2015. © Innopay BV. All rights reserved.
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Check-‐out
Check-‐in
Check-‐once
Level of sop
his,ca,o
n of ID
/trust
Seamless shopping & payment experience Source: Innopay
Changing check-‐out: Towards a truly seamless shopping and payment experience
19 How to sell more with Payments – Tom Rijks – 22 May 2015. © Innopay BV. All rights reserved.
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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…