According to a study conducted by the Baymard Institute, approximately 69% of people abandon their shopping carts before paying!
These same statistics apply to the service industry as much as they do the retail industry.
More in-depth analysis found that around 58% of people would have abandoned their carts in any case, as they weren't really ready to buy.
However, the other 11% of people abandoned their carts for a range of different reasons, which can be seen in the chart below:
What does this mean for your business?
This means that you could be making approximately 33% more than you are making at the moment if any of these problems apply to your booking system and checkout process.
Hang on... Why 33% you ask?
Well, at the moment only around 30% of people are purchasing, remember? And 70% are abandoning your cart. If you could increase this to 40% of people purchasing by solving the above issues, then that's 33% more than you're currently getting!
I'd also like to add a comment of my own here. This hasn't been tested, but I believe that when dealing with a booking system EVEN MORE people abandon the process, and that is due to the booking system ITSELF being confusing.
In the retail industry it's basic - you like a product and you add it to your cart. But in the service industry, customers are required to navigate your booking system first. And if it's not crystal clear (and most aren't) then people will simply give up.
Here's a useful infographic from the travel industry:
As you can see, in the travel industry it's even higher than 69%, and I would argue that this number is probably closer to the rate for the service industry in general.
What can we learn from these studies?
The main things that stop people from checking out are:
- Prices are too high
- The booking process itself is too long and complicated
- The website crashes
- There are not enough SECURE payment options
OK, how can we solve these issues, and make sure that you get an extra 33% MORE BOOKINGS than you're currently getting, WITHOUT spending any more on advertising (this is just from your EXISTING website traffic)?
Problem 1) Prices too high
You may think this is impossible to solve, but actually it's not all that difficult.
When people say that something is too expensive, they mean the "perceived" price is too expensive (unless you're charging a lot more than your competitors).
Solution 1 - Different pricing strategies
In order to overcome this obstacle, offering a range of different pricing options such as package deals and memberships is the best way to bring the perceived price down.
But won't this reduce your profitability, you ask?
Well, no, it probably won't. As you know, the chances that everybody who pays upfront actually making the most of what they purchase from you is slim.
It's like a 12 month gym membership - they sell it just a little bit more expensive than the 6 month membership because they know that most people drop out after just 1 month anyway!
And chances are you're not running at capacity, so even if a few people DO make the most of these upfront purchase discounts and use them to their maximum, it still won't cost you any more money.
And the great news - you're getting money in your pocket up front!
Solution 2 - Cheaper base price with "upsells" on extras
Another great way to reduce the perceived cost of your products is to sell the base product at a low cost and then include a range of "extras" that people can add to their booking.
It's like when you buy an airline ticket and add extra leg room, insurance, and entertainment, or order a Big Mac and add fries and drink... The initial product is cheap, and therefore the customer thinks they're getting a good deal, but in the end the business makes more from the extras than they do from their main product. Cinemas, apparently, make more from popcorn sales than from selling tickets!
So, if your existing booking system does not allow you to offer special pricing configurations, such as packages and memberships, and an easy way to add "one click upsells" to the checkout process, then you might want to consider one that does.
Bookible offers a range of different pricing options as well as easy upsells as part of our booking system which can be fully customized to your business.
Problem 2) The booking process is too long or complicated
Many service industry websites have booking systems that are very difficult for a new customer to understand. Because there are so many ways of displaying a timetable, and often businesses have a wide range of services that they offer, it's no wonder that so many customers get confused and decide to click away onto their Facebook page or their favourite Youtube channel and completely abandon the booking process!
Not only that, but if the form on your booking system requires everything from a postcode to a credit card number, the average user (with an attention span of less than a minute) will give up in frustration.
Now, this is a problem that's not that hard to solve!
Solution 1 - Make your booking process simpler
Firstly, make sure your booking system is clear and segmented in a way that makes sense to a user.
Work out what is most important to your user (is it the service type, the service level, the location, the service provider, the price, the day?) and then make sure that is the FIRST THING they can see and choose.
After they've made that selection, are there more options they can choose from? If so, present these one at a time.
A complicated timetable with four different filters on it will confuse even the savviest customer.
By presenting the options one at a time, finally leading the customer through to a clear timetable (whether in a list, a day, week, or month format), will make the booking process smooth and easy for them.
Remember, you know your business inside out, so you understand how it all works, but a new customer needs to be lead through the process one step at a time.
Solution 2 - Reduce the checkout time with social signin
Once a customer has chosen their booking time, make the rest of the process easy and don't have too many fields on your checkout form.
Having a "Social Signin" option can increase sales by up to 10% according to one study. And according to the chart below, 86% of people are bothered by having to create a new account on a website, and 77% of people think having a social signin is a good solution.
Social signin makes the checkout process seamless, as most people are already logged into their social media accounts. You probably know yourself that creating yet another username and password on a new site is a pain in the [email protected]#$#, so don't put your customers through the same pain.
And, as a reward, you'll enjoy higher signup rates!
All sites built on the Bookible platform have built-in social signin!
Problem 3) Website issues
Solution - Make sure your website is hosted with a reliable source and constantly monitored
If you don't check your own website that often, make sure your site is hosted with a company that performs 24 hour monitoring on their website uptime.
There's nothing worse than losing customers because your website is offline and you didn't even notice.
Problem 4) Not enough payment options
Solution - Offer at least 2 forms of payment
Many businesses just offer credit card payments, but adding an option like Paypal can increase conversion by up to 33%!
Paypal, like Social Login, offers people a seamless way to pay as all they need to remember is their Paypal email address and password (easier than remembering a credit card number) AND people trust that Paypal is 100% secure.
Offering at least two forms of payment, and maybe more, is a very easy way to increase conversions on your site!
Problem 5) How to get customers to return to complete purchase?
Solution - Send emails to people who have abandoned their carts
Imagine if your booking system automatically sent emails to customers who abandon their carts!
Well, that is exactly what the Bookible system does. When logged in customers leave a cart without paying, the system will send them a friendly reminder email asking them to kindly complete their purchase!
This is a great way to get people back to your site who simply may have been distracted or forgotten to purchase. Some businesses have managed to achieve up to a 29% conversion rate with these types of emails!
All up, there are many easy ways you can increase revenue on your website just by having an easy booking and checkout process.
And this doesn't even cover all the ways you can improve revenue from your business by having a website that is well designed and optimized for conversions!
If your current booking system is letting you down, then give Bookible's system a try today - absolutely free!
CLICK HERE to see a demo of a Bookible site, and give its booking system a try for yourself to see how easy it is from a customer's perspective! Then, if you like it, start a free trial and create a Bookible website for your own business!
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