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Reading Time: 3 minutesBuying products and services online has become infinitely easier thanks to mobile devices. These days, we don't expect customers to sit down in front of a computer to make a purchase. But no matter how accessible businesses are online, many customers are still abandoning their carts at the checkout!
There are many reasons why online users fail to make it to the “finish line,” but one thing is for sure, a complicated checkout process is a factor that leads to cart abandonment.
According to a Baymard Institute study, 34% of online customers abandon their cart because they lack a guest checkout option. It is listed as the number 2 reason for cart abandonment. The same study also found that 17% of customers fail to complete a purchase because of a lengthy checkout process. This shows how most users prioritise convenience over everything when making an online purchase. That's why it pays to offer a guest checkout on your eCommerce site.
Guest checkout is a simplified feature that enables users to complete an online purchase without creating a customer profile or logging into an existing account.
A typical checkout process involves many steps and being led from one website page to another to complete different shipping and billing forms.
Because online users are tired of creating and collecting accounts and passwords, they are no longer interested in making more accounts. A guest checkout skips most of these steps to send paying customers on their way faster.
The most obvious benefit of a guest checkout is it makes payment processing easier for the customers. This goes for new and current customers; payment is seamless and takes only a few minutes. A guest checkout eliminates the hassle of logging into a customer's existing account to complete a purchase. New customers can buy what they want and settle the payment in one go.
A guest checkout is more convenient to the customers because there are fewer steps to take to complete a purchase. Some people are put off by being forced to create a store account. Potential customers who are reluctant to create a store account can skip the usual steps and make a purchase. They don't have to fill out so many forms. Current customers don't have to recall their access codes to make a purchase; they can pay almost instantly with guest checkout.
Because guest checkout does not save payment information, shoppers have more confidence in making a purchase. Buying anything online is risky, and many are wary of giving away their financial details. People don't like being forced to give their financial information, such as credit card details and billing address. Guest checkout may be the thing to persuade even the wariest of consumers because it's more secure.
Requiring consumers to make a store account gives the impression that you're forcing clients to commit, and a lot of times, that's different from what they want. They want to shop online and then get on with their day. Guest checkout requires little commitment from shoppers – just their billing and shipping information. It gives clients the option to keep their personal details private even when completing a purchase.
Low Abandonment Rate
Guest checkout allows for quick and easy online purchases. When forced to create an account, most shoppers abandon their cart and look for merchants that sell the same thing without the hassle. When customers do not feel like they are jumping through hoops to make an online purchase, they are more likely to complete the payment. This leads to a lower abandonment rate and a higher conversion rate!
Allowing guest checkout has many benefits, but it has one downside. Since you cannot save customer details, you cannot re-target guest shoppers for future marketing. However, you can offer the option to create a store account at the end of the checkout process. You can encourage guest shoppers to complete their store account with an incentive such as a complimentary gift, a discount, exclusive content, etc.
If the shoppers enjoy hassle-free shopping, they're likely to return for more. Growing your customer list is important but generating healthy revenue is just as vital for your business.
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