The impact of payment and shipping methods on the conversion rate
This article describes the method of evaluating the impact of payment and shipping terms of products on the conversion rate. The results are used to improve the conversion rate and products turnover.
It’s not only a price that is important for a customer but also available payment methods, timing and shipping terms. If some products are available only for an order in advance, one of the ways to reduce the shipping time is a warehouse placement. But this approach leads to a decrease in product turnover.
Likewise, the ability to order products without prepayment improves conversion rate and increases the share of items that were not redeemed.
Therefore, it is necessary to evaluate how the current order terms impact the conversion rate and the cost of customer acquisition; how this effect varies depending on the product group and the user region.
Data to be analyzed
To collect the necessary data, you should add information about the available payment methods into dataLayer. Further, granular analysis of unsampled data allows you to find the customer paths, that had a specific product order and those which hadn’t one. Grouping paths by available payment and shipping methods allows you to see how they affect the conversion rate. Comparing the results of analysis with the possible additional costs, you can make data-driven decisions.
The report helps you determine
How the shipping time affects the conversion rate:
The drop in the conversion rate for products with an outstanding delivery time.
How shipping terms effect varies depending on the product group
Or the user region:
Results are used by
- Category manager to effectively estimate amount of products to be stored at warehouses
- Marketing specialist to determine proper delivery time