According to a decade-long study by the Baymard Institute, better checkout design can increase the average conversion rate of large e-commerce sites by 35.26%.
Given the potential for such substantial improvements, A/B testing becomes an invaluable tool. It allows retailers to systematically compare different checkout strategies and identify the most effective solutions.
Here are three tests to get you started.
1. Guest Checkout vs. Account Creation
When customers shop online, the process of making a purchase can sometimes feel like a series of hurdles. One big hurdle is being forced to create an account before checking out. To see if this step is a deal-breaker for your customers, you should test the impact of mandatory account creation versus allowing a guest checkout option.
Why test this?
We get it; there are benefits to mandatory account creation. But requiring customers to create an account adds an extra step to the checkout process. This can be off-putting, especially for new customers who just want to make a quick purchase. Letting them check out as guests removes friction in the process, likely leading to better conversion rates. Testing guest checkout vs. mandatory account creation will let you take a close look at revenue metrics from each cohort.
How to measure success:
To see if guest checkout really makes a difference, you’ll want to track a few key metrics:
- Conversion Rate
- Cart Abandonment Rate
- Time to Complete Purchase
It’s also a good idea to dig into your current performance metrics. Does mandatory account creation increase the likelihood of repeat purchases? If so, by how much? Does the benefit of repeat purchases outweigh the cost of abandoned carts?
What we think will happen:
By allowing guest checkout, you’re likely to see more customers finishing their purchases. The process becomes less of a hassle, which can lead to higher conversion rates and fewer abandoned carts.
2. Manual Card Entry vs. Credit Card Scanner
Streamlining the payment process is a key factor in optimizing the checkout experience. Testing the use of a credit card scanner versus manual card entry can help you determine if automating the card entry process reduces friction and improves completion rates.
You’ll create two versions of your payment process:
- Version A: Manual entry of credit card details.
- Version B: Use of a credit card scanner to automatically capture card information.
Why test this?
Entering credit card details manually is time-consuming and prone to errors, which frustrates customers and leads to abandoned carts. A credit card scanner, which captures card information automatically, speeds up the checkout process and reduces the likelihood of errors. This enhances the overall customer experience and increases the likelihood of purchase completion.
How to measure success:
To see if using a credit card scanner makes a difference, track these key metrics:
- Conversion Rate
- Time to Complete Payment
- Error Rate in Card Information Entry
- Chargeback Losses
What we think will happen:
With a credit card scanner, you will see an increase in conversion rates and a decrease in the time it takes to complete a purchase. These improvements can make the checkout process more efficient and satisfying for customers.
3. Single-Page Checkout vs. Multi-Page Checkout
Every additional step in the checkout process is a chance for customers to drop off. One way to simplify this process is by moving to a single-page checkout. Testing these two formats can help you understand which method is more effective in keeping customers engaged and completing their purchases.
You’ll create two versions of your checkout process:
- Version A: A traditional multi-page checkout with separate pages for shipping, billing, and payment information.
- Version B: A single-page checkout where all information is entered on one page.
Why test this?
The checkout process should be as smooth and quick as possible. A multi-page checkout can feel long and drawn out, requiring customers to navigate through several steps before completing their purchase. Cut everything not necessary to the purchase out of the form. A single-page checkout, where all necessary information is entered on one page, could streamline the process, making it faster and less cumbersome for customers.
How to measure success:
To determine which checkout method is more effective, track these key metrics:
- Conversion Rate
- Cart Abandonment Rate
- Customer Satisfaction
Customer Satisfaction can be measured through post-purchase surveys, where customers rate their checkout experience.
What we think will happen:
With a single-page checkout, you’re likely to see an increase in conversion rates and a decrease in cart abandonment rates. Customers can complete their purchases more quickly without feeling bogged down by multiple steps. Additionally, this streamlined approach can enhance overall customer satisfaction, as the simpler process is likely to be perceived as more user-friendly.
4. Multiple Payment Options vs. Limited Payment Options
Offering a variety of payment methods can make the checkout process more convenient for customers, potentially increasing the likelihood of completed purchases. Testing the impact of multiple payment options versus limited payment options can help you understand how flexibility in payment methods affects customer behavior and satisfaction.
You’ll create two versions of your checkout process:
- Version A: Limited payment options, like only accepting credit/debit cards.
- Version B: Multiple payment options, including credit/debit cards, PayPal, Apple Pay, Google Pay, and buy now, pay later options.
Why test this?
Different customers prefer different payment methods. Some might want to use their credit or debit cards, while others might prefer digital wallets like PayPal, Apple Pay, or Google Pay. By providing multiple payment options, you cater to a broader range of preferences, which could reduce the chances of cart abandonment. The goal here is to determine if the revenue benefit from having multiple options outweighs the business cost.
How to measure success:
To evaluate the effectiveness of offering multiple payment options, track these key metrics:
- Conversion Rate
- Cart Abandonment Rate
- Payment Method Selection Distribution
Tracking payment method selection distribution tells you which payment methods customers prefer. Understanding this can help you optimize the checkout process further.
What we think will happen:
With multiple payment options, you’re likely to see an increase in conversion rates and a decrease in cart abandonment rates. Customers will appreciate the flexibility and convenience, making them more likely to complete their purchases. Additionally, by analyzing the distribution of payment method selection, you can gain insights into customer preferences and adjust your offerings accordingly.
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