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40-50% of users signing up but not completing payment?


Seiya

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Hey all,

 

We've just launched a new site and offer four payment gateways (Paypal, PayOffline, cashU and Liberty Reserve) and we have tested them all extensively. In the last 3 weeks we've been operational, roughly 40% of our customers signup, but dont complete payment for some reason. I was wondering how normal this is and if there is some generally accepted percentage you just have to write off. We have a very clear pricing page and we just dont understand why someone would go to the trouble of signing up if they dont intend to pay. The details dont look fake either so its no just so bot or tester.

 

Any insights or advice would be most appreciated. :-P

 

Kind regards,

 

Seiya

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Pick one or two and contact them. If you don't get a response, contact the next two..

 

It's an interesting problem.. I'm curious to know what you find out...

 

Yes, I've already broadcast and email to all of them. I even offered a promotional discount to anyone who provided some feedback. I only got one response out of a few dozen and he said that the price was the concern - which makes no sense to me since he has already seen the price and gone through registration - why backout at the payment gateway stage?

 

Its like walking into Best buy asking for the price of an iPod and then say great I'll take one and completing the guarantee form and then going to the checkout teller and when she asks you to pay you decide its too expensive.

 

Thanks for the advice Brian!

Edited by Seiya
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50% dropoff is very high ratio. Basically it means that your client wanted to buy something, but at the very end changed his mind. You should ask yourself why this happens? Price is rarely an issue, It seems like something disappoints your clients, and that's why they resign to pay for your product. Maybe the message you sending is not clear enought? Maybe something confuses them?

 

You can test it by yourself. Just ask your friends, family to use your site. Before they do, tell them to notice anything that makes them not pay, and tell them to be brutally honest. It's the easiest way to know what the real issu is. And it's free, which is always good thing :)

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Hey all,

 

We've just launched a new site and offer four payment gateways (Paypal, PayOffline, cashU and Liberty Reserve) and we have tested them all extensively. In the last 3 weeks we've been operational, roughly 40% of our customers signup, but dont complete payment for some reason. I was wondering how normal this is and if there is some generally accepted percentage you just have to write off. We have a very clear pricing page and we just dont understand why someone would go to the trouble of signing up if they dont intend to pay. The details dont look fake either so its no just so bot or tester.

 

Any insights or advice would be most appreciated. :-P

 

Kind regards,

 

Seiya

 

maybe if you add you site to your profile or as a signature other may look and tell you what may be the problem.

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We've just launched a new site

 

And you most likely advertized in a few places to get the word out in hopes of some signups.

 

One or more of those places probably attracts some of the "wrong crowd" that try to use stolen PayPal or credit card accounts. Or some may be familiar with WHMCS and hope you have not set up your products correctly and left "Automatically setup the product as soon as an order is placed" checked. Have you checked your Gateway Log? Are there alot of Denied transactions?

 

This type of activity will drop off when they realize they won't get something for free from your site and when your "ads" drop down the thread lists if you promoted on forums.

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Any insights or advice would be most appreciated. :-P

 

Kind regards,

 

Seiya

 

Hi Seiya, I agree with easyhosting about linking your site so we can help. We're all friends here and we participate to give one another an honest perspective (there are exceptions to every rule, of course, but that is the way it works around here in general).

 

Help us help you,

Rick

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  • 6 months later...
Hey all,

 

In the last 3 weeks we've been operational, roughly 40% of our customers signup, but dont complete payment for some reason. I was wondering how normal this is and if there is some generally accepted percentage you just have to write off. We have a very clear pricing page and we just dont understand why someone would go to the trouble of signing up if they dont intend to pay.

 

How long is your checkout process? research shows that users are more likely to buy if they can do it all on one page. WHMCS offers 1 step checkout cart as well as 3 step and 5 step.

1 step is perfect, 3 step is good. 5 step is just stupid, im bound to change my mind if i get 5 times to do that.

 

Also, how user-friendly is your cart? Maybe they get confused at an option. For example, people find the domain selection options confusing. So i changed the text saying 'I want HostingCompany to register a domain for me' to 'I want to signup for hosting with a new domain'.

 

The last thing would be to check how good the shopping cart resembles the actual site. People tend to buy more comfortably if they think they are on the same site and not redirected to a different looking one. Its worth a try.

 

Hope that helps =D

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I agree, higher than 25% is concerning

 

The first issue is whether the account has been used simply to look round restricted parts of the website (such as network status, announcements, etc)

If this is the case, then create a sample login for potential customers (this account has no priviliges to place an order)

 

The next issue is whether the email address and/or address look realistic

 

Following on from that are customers that proceed to place an order, but it is left as pending

This suggests a payment processing issue

 

I know earlier this week there was an issue with PayPal

We include an instruction that if the PayPal payment fails, to submit a Support ticket and we will create a manual invoice thus saving the customer time, on completion we will then process and match the payment to the original order

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