Consumers Register If you Show Them “WIIFM”

04/25/2008

According to a recent study by Forrester Research, Required Registration Lowers Online Conversion Rates, almost 25% of consumers abandoned a purchase when they had to register to complete it. As online retailers in particular place a high value on garnering consumer information, this is a huge problem for them.

So, how do they overcome it? The solution is as old as the sales industry itself, WIIFM. Or, in plain English, answer the question everyone wants answered before they buy, “What’s in it for me?” Older consumers (those aged 63 and over) were the most likely to abandon a purchase. They did so 26% of the time. Those a decade behind (52 to 62) did so 24% of the time. However, all other age groups were not far behind, abandoning at a rate of 22%.

Slightly more than fifty percent (51%) of online purchasers cited a myriad of reasons that would make them less likely to abandon their purchase and part with some personal information. In order of ascendancy, the tope three reasons were: free content (39%); 40% would give some information to save time; and 41% said they would part with personal information to receive fewer advertisements.

One of the best things online retailers could do to decrease abandonment rates was to make registration optional, according to Megan Burns, who authored the Forrester report. She also suggests that online retailers expand on the WIIFM principle. Citing NikePlus.com, she gave an example, explaining that the site tells viewers exactly what they’re going to get by registering (e.g., virtual running challenges and the ability to track their running goals).

Lastly, online marketers and retailers would do well to remind customers that their data is always safe and secure with them.

Online marketing is tough enough without stopping consumers at the cash register so to speak. Implementing policies like the ones suggested here should go a long way toward increasing online conversion rates for e-tailers.

Internet Consulting For more insight visit Online Consulting Services