Why does internet business lose up to 30% of its turnover? (Infographics)
About $ 118 billion in potential revenue in 2014 was missed by Internet entrepreneurs in the United States because of mistakenly declined transactions. Customer payments were rejected due to false suspicions of fraudulent transactions, although payment was made by the cardholder.
According to statistics, the average conversion of online payments in Ukrainian Internet business is 65-70%. In fact, about 30% of customer payments may not be completed and lost from the turnover of the Internet entrepreneur. A significant part in the aggregate of such losses is mistakenly rejected by buyers' transactions due to suspicion of fraud (according to the rules of the anti-fraud system). Losses in the share of turnover can also cause problems for buyers at the time of payment.
The amount of losses can vary depending on the turnover of the Internet business and reach colossal numbers. Below are 3 main problems that can reduce potential profits when accepting online payments.
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Payment problems
This problem was described in the article earlier . Difficulties with online payment is one of the main problems that lead to loss of customer payment. Timely assistance provided to the client when paying will allow you to return up to 40% of potentially lost purchases. At the moment, the solution to the problem when paying in the WayForPay service occurs through three channels: through a phone call, via emails and in Viber. A week, the support service makes up to 5,000 outgoing contacts for problem transactions. The most effective channel for communicating with a customer is a phone call, the second channel of effectiveness is customer notification on Viber.
On average, if the client does not provide assistance with payment within 7 minutes, the buyer may refuse to pay for the goods or services.
Excessive fraud protection
Payment card fraud is indeed capable of harming the Internet business, and excessive opposition to all risky payments may cause no less problems. According to Global Fraud Survey, about 5.5% of cardholders in the United States when paying online, faced a false rejection of payment due to suspected fraud. The average amount of rejected purchases, according to a study, was $ 726.
In addition, the Global Fraud Survey report noted that every third buyer, whose payment was mistakenly declined, said they would no longer make purchases on this site.
Features of the payment services
Some services have their own rules of work, for example, with foreign cards. As part of the same features of setting up anti-fraudulent filters, most payments on foreign cards are simply rejected.
According to the WayForPay service, on average, up to 20% of 30% of potentially lost payments can be returned to the online store. The approach to solving these problems should be comprehensive and be resolved at each stage of the payment movement. Profit for online business lies in every successful payment on the site and therefore it is more profitable to “accompany” a customer at each stage of payment than to lose a buyer who has already made a purchase decision.
According to statistics, the average conversion of online payments in Ukrainian Internet business is 65-70%. In fact, about 30% of customer payments may not be completed and lost from the turnover of the Internet entrepreneur. A significant part in the aggregate of such losses is mistakenly rejected by buyers' transactions due to suspicion of fraud (according to the rules of the anti-fraud system). Losses in the share of turnover can also cause problems for buyers at the time of payment.
The amount of losses can vary depending on the turnover of the Internet business and reach colossal numbers. Below are 3 main problems that can reduce potential profits when accepting online payments.
')
Payment problems
This problem was described in the article earlier . Difficulties with online payment is one of the main problems that lead to loss of customer payment. Timely assistance provided to the client when paying will allow you to return up to 40% of potentially lost purchases. At the moment, the solution to the problem when paying in the WayForPay service occurs through three channels: through a phone call, via emails and in Viber. A week, the support service makes up to 5,000 outgoing contacts for problem transactions. The most effective channel for communicating with a customer is a phone call, the second channel of effectiveness is customer notification on Viber.
On average, if the client does not provide assistance with payment within 7 minutes, the buyer may refuse to pay for the goods or services.
Excessive fraud protection
Payment card fraud is indeed capable of harming the Internet business, and excessive opposition to all risky payments may cause no less problems. According to Global Fraud Survey, about 5.5% of cardholders in the United States when paying online, faced a false rejection of payment due to suspected fraud. The average amount of rejected purchases, according to a study, was $ 726.
In addition, the Global Fraud Survey report noted that every third buyer, whose payment was mistakenly declined, said they would no longer make purchases on this site.
Features of the payment services
Some services have their own rules of work, for example, with foreign cards. As part of the same features of setting up anti-fraudulent filters, most payments on foreign cards are simply rejected.
According to the WayForPay service, on average, up to 20% of 30% of potentially lost payments can be returned to the online store. The approach to solving these problems should be comprehensive and be resolved at each stage of the payment movement. Profit for online business lies in every successful payment on the site and therefore it is more profitable to “accompany” a customer at each stage of payment than to lose a buyer who has already made a purchase decision.
Source: https://habr.com/ru/post/295304/
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