US retailers losing over USD 24 bln due to poor mobile experience
These are the findings of the 2015 Mobile Consumer Insights Study which was conducted online by Harris Interactive on behalf of Jumio, a US-based online and mobile payments and credentials management company.
The study found that 56% US smartphone owners have abandoned a mobile transaction, down from 2013, when 66% of respondents failed to complete a transaction due to issues during checkout. After purchase uncertainty, usability issues rounded out the top three reasons why users abandon a purchase or account registration, including slow loading times (36%) and difficulty with navigating the checkout process (31%).
According to Statista Inc., mobile commerce revenues reached about USD 57 billion in 2014. In addition to the majority of the survey recipients abandoning transactions, the study also found that nearly a quarter of consumers abandon their attempts at opening an online gaming (27%) or financial services (23%) account and over one-third (34%) of those who abandon a transaction do not attempt again.
Other 2015 Jumio Mobile Consumer Insights Study findings include:
- Apparel, the largest mobile commerce sector, is also the most frequently abandoned, with three in five (60%) of those reported abandoning purchases doing so with apparel items (clothing, shoes, accessories). These rates vary by gender and age, with women (68%) more likely to abandon a clothing or apparel transaction than men (51%), especially female millennials (78%).
Abandonment rates by industry were identified as follows: 60% for retail/apparel, 41% for food (groceries or takeout), 41% for travel, 39% for household items, 39% for event tickets, 39% for entertainment purchases, 35% for electronics, 27% for online gaming and 23% for applying for financial services account (opening an account, money transfer).
- After purchase uncertainty (45% respondent attribution), issues with speed (36%) and ease of navigation (31%) are top reasons cited by those who have abandoned a mobile transaction. In fact, users are more likely to abandon a purchase due to user experience issues than due to the security of payment (27%) or personal information (26%).
In addition to purchase uncertainty, another factor most often cited for shopping cart abandonment is usability: 36% reported apps/mobile sites being slow to load, 31% reported that apps/mobile sites that are too difficult to navigate. In addition, for 28% it is difficult to type personal information on a small screen, while for 22% the payment process was too complicated.
- Retailers who prioritize mobile checkout stand to reap some big returns. Nearly one-quarter (23%) of those who have reported abandoning a mobile transaction say their cart was valued at USD 100 or more the last time they abandoned a transaction at the checkout.
- Two thirds (66%) of those who have abandoned a mobile transaction went back and attempted that transaction again later, with the computer being the preferred method the second time around. Also, 36% say they made their next attempt from a computer, 23% tried on their smartphone and 7% tried on their tablet.
The Jumio study was conducted from June 18-22, 2015 among 2,019 US online adults ages 18+.