Some 42% of online retailers are failing to measure checkout conversion, the most important metric for completing online sales, despite an online cart abandonment rate of 68%, according to Fetchify.
The data validation specialist found that 35% and 42% of ‘small’ and ‘micro’ retailers respectively, are failing to measure checkout rates. 10% of large retailers are also failing to measure rates.
42% said they did not measure conversion because of a lack of time and resources, while 31% said they did not know how.
However, the research also found retailers are adapting their checkouts to boost conversion. 70% of retailers have invested in new tools to help with address lookup, used by 60% of consumers, upsell tools, used by 30% and delivery options, reengagement messages and discounts, all used by 20%.
When asked how ‘effective’ these tools are, address lookup scored the highest and rated “very effective” or “effective” by 71%. This was followed by abandoned cart discounts by 67%.
Alternative payments and buy now pay later (BNPL) options also scored highly with 63% for both. Urgency tools including limited offers and countdowns rated 38% effective and upselling related products and remarketing ads both scored 44%.
“The study is something of a mixed picture. On one hand retailers are investing in the tools they need to boost their checkout conversion rates but on the other, a large proportion aren’t measuring the key metric they need to track their effectiveness,” Fetchify chief executive officer Russell Jones said.
“Dropped baskets are a huge problem across retail and even a tiny increase in conversion rate can mean big increases in revenue to a business. The tools they have purchased have to be fine-tuned to increase their effectiveness and you can only do that when you have the key data.”