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QR Codes are the Future of Mobile Payment System – Find Out Why

Category: Growth Hacks

QR Codes are the Future of Mobile Payment System – Find Out Why

QR Codes are the Future of Mobile Payment System – Find Out Why
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QR codes are not new really. In fact, the first QR code was generated in 1994 in Japan and was used to track parts and vehicles during the manufacturing process. While it did find other uses, QR codes were mostly considered a passing fad or something that enterprises needed internally to keep track of their products. But things changed in 2011, when QR codes were first used for mobile payments. The mobile wallet app for Bitcoin, a cryptocurrency, got a feature where users could send or receive bitcoins with the help of QR codes. In the same year, Alipay introduced a mobile payment system where offline stores could scan the QR codes of a customer in their Alipay wallet.

Also Read: How Shoppers Browse and Buy Products Online & Offline

Since then, QR codes have gone from strength to strength and emerged as the primary method of payment for countless people and businesses around the world. It’s easy, it’s secure, doesn’t take too much time, and payments can be done through smartphones as well. There is no need for a QR code scanner or any other device.

How Does QR Code Payment Work?

To understand how payments happen through QR codes, you need to first understand these codes.

So, what is a QR code? Short for Quick Response, QR codes store digital data in a physical representation, much like barcodes. One of the biggest differences between barcodes and QR codes though is their structure. While barcodes are made up of vertical black and white bars of different widths, QR codes contain a unique pattern of light and dark spots within a limited amount of space.

These spots can contain a larger volume of data than barcodes. They can store anything from payment information to store URLs, location of the store, offers, and more. In QR code payments, whether you are a business owner, merchant, or freelancer, you can generate a unique code, which the customer can scan with their camera or a payment app. The code will contain information about the payment or the business and allow the user to pay any amount freely.

Usually, these QR codes are integrated by a payment gateway which transfers any money generated through these QR transactions directly to your bank account. A robust payment gateway solution will take care of everything from setting up the codes to receiving payment from customers.

Different Types of QR Payments

Static

As the name suggests, static QR codes stay the same and don’t change frequently. They store specific data and can be reused again and again. Static QR codes are ideal if you are a retail store owner, street vendor, or shopkeeper. Once you display the codes on the counter, any customer can scan it, enter the required amount that needs to be paid, and go ahead with the transfer.

Dynamic

Dynamic QR codes change continuously and can store different information each time. In a dynamic QR code, payment details can be encoded for every unique payment, making it impossible to print out the code and place it on the store counter. If you run a petrol pump, food court, restaurant, or other such places, you can use dynamic QR codes for mobile payments. You need to input the billing amount for every customer, and a new code will be generated every time, which the customer can scan to pay.

Also Read: How to Simplify Invoicing and Billing

Customer-Generated

In the customer-generated method, it’s the payer who generates the code for payment. You, the seller, will need to scan this code, enter the required amount that the customer needs to pay, and then the payment request will be generated. The customer can accept this request, after checking the amount of course, and the selected amount will be deducted from their account automatically. In this method, the payment is dependent on whether the customer accepts the payment request sent by you.

Merchant Generated

This is a combination of dynamic and static QR codes. You, the merchant, can generate dynamic codes for each transaction or can have static codes for a specific product or counter. This way, you can speed up the billing by segregating customers as per their products.

Where are QR Payments Being Used?

QR codes as a mode of payment aren’t that old but have taken the world by storm in just a few years since their inception. They provide a lot of ease and convenience to both customers and sellers. Furthermore, the recent COVID-19 pandemic and the need to limit physical contact has boosted the adoption of QR codes in the mainstream.

Research by Statista revealed that nearly 28% of customers in the US and UK markets agree that QR code payments have seen a rise since 2020. Another research has stated that payments through mobile will reach USD 1.3 trillion by 2022 and QR payments have a big role to play in that. QR codes are no longer a complicated technology that only large enterprises can implement. While global companies like MasterCard and Visa are supporting merchants like you worldwide to start accepting payments through QR codes, local companies are providing support in their respective countries as well.

Now, whether you are a roadside food vendor or a multi-floor shopping centre, you can enable QR codes and mobile payment systems so that customers can pay without any difficulty. In developing countries like India and China, mobile payments have become the preferred way to pay, with nearly half the population scanning at least one QR code a week in China for payment purposes. Just from QR code payments, China made more than $1,900 billion in 2020.

Benefits of QR Code Payment

  • Easy to Implement

All you need is a smartphone to generate a unique QR code and start using it to receive payments. It doesn’t require any extra devices or deep technical knowledge, and a user can easily generate codes for commercial or personal use.

  • More Payment Methods

In 2022, cash is not the only way a person can pay for something. Mobile payments have become normal now, and a QR code gives you the ability to start accepting payments in methods other than cash as well. It also means that there will be an increase in customer flow inside the shop.

  • Reach Out to a Wider Audience

QR codes also help you reach a wider audience. They can be embedded in different locations across the store so that the customer can pay for something quickly and head out. They can be sent digitally to the customer or presented on the website as well so that they can pay for something while sitting at home. QR codes can be embedded in any mobile device as well so that you or your colleagues can accept payment from anyone, anywhere.

  • Faster Transactions

If the internet connectivity is fine and the account is completely set up, it takes just a couple of seconds for a customer to scan the code, input the amount, pay, and show you the confirmation.

  • Secure

As a merchant, rest assured that the code can store only the data that you decide. Hence, these codes protect you against fraudulent activities, false payment confirmation from customers, and phishing attacks as well.

Where customers are concerned, QR code payments are highly secure and transactions happen over an encrypted network so that no one can store or steal their personal information. The only activity they need to do is scan the code and there’ll be no attempt of theft or unauthorized access to their account.

  • Enhanced Engagement

While cash discounts might be rare, promotional campaigns, eCommerce companies, nationwide festivals, partnerships between companies, and other such offers can be commonly found if a customer chooses to pay digitally. Not only does this bring more customers and revenue to a company, but it also enhances customer engagement. Everyone loves to score some discounts and often tends to spend more in the hopes of getting a bigger discount.

Also Read: Finding the Best Payment Gateway for Your eCommerce Business Made Easy

The Future of Mobile Payments

If recent trends are to be believed, mobile payments based on QR codes are only going to increase. Digital banking has evolved a lot, with almost every person owning a smartphone these days, and integrating QR codes in stores has become a lot easier. The icing on the cake has been the acceptance of governments and business giants in moving towards a more digital economy. So, if you are a merchant and looking to implement a mobile payment system, PayTabs can help you with generating and setting up your own QR codes. You can then accept payments from a customer in a matter of seconds, even if they aren’t in your store physically.

7 Strategies That Are Proven to Reduce Involuntary Churn (And Help Win Your Customers Over)

Let’s say you’re an app developer. You’ve found your niche, built an original app that you just know people will love, optimized your marketing and discoverability plan, and have what you think is a fail-proof monetization strategy. But for some reason when it comes to product launch a high churn rate is killing your profit margin.

In the language of sales, customer churn rate is the percentage of customers that stopped using your company’s product or service during a certain period of time. 

To calculate your churn rate, just divide the number of customers you lost during a certain stretch of time by the number of customers you had at the beginning of that time period. For example, if you started the quarter with 400 customers and ended it with 380, your churn rate would be 5% because you lost 5% of your customers.

What is involuntary churn?

No matter what product or service you sell, attracting potential customers and convincing them to part with their money is all well and good, but if for whatever reason they can’t finalize payment, you’ve lost a sale.

Involuntary churn is exactly this. It refers to when a customer is ready to make a purchase but some unforeseen difficulty prevents them from doing so.

7 Strategies That Are Proven to Reduce Involuntary Churn (And Help Win Your Customers Over)

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Because we tend to think of churn rates as a metric that applies to existing customers, we often talk about involuntary churn as a feature of subscription services or business models that rely on repeat payment. 

When analyzing your website’s traffic, it is useful to think about bounce rate vs exit rate in order to get a clear picture of which stage of the user experience people are leaving the site. The same logic applies to churn rates. When exactly in the customer lifecycle you are losing business is just as important as why.

1- Analyze what’s causing your company’s involuntary churn

When thinking about involuntary churn, the first thing you need to ask yourself is what’s causing the churn.

Are payments defaulting because of a problem with your payment gateway? Or is it an issue with your web design that’s causing the site to crash at the point of sale? 

Different businesses will find that different things are causing customers to churn involuntarily. There’s no straightforward way to figure out what’s causing involuntary churn and ultimately it will take different types of testing to do so.

2- Apply best practices when sending dunning messages

Dunning is the process of methodically communicating with customers to ensure the collection of payments owed. It’s a simple but effective way of addressing involuntary churn that many businesses apply to the management of their repeat customers.

If you’re signed up for any repeat payments, subscriptions, or buy-now-pay-later services, you may have received dunning messages in the past. They typically take the form of an email or SMS sent if an expected payment hasn’t been processed for any reason.

If your dunning messages are accusatory or confrontational, you risk alienating the customer for good. After all, most failed payments can easily be rectified by customers simply re-attempting the payment or updating the payment details.

7 Strategies That Are Proven to Reduce Involuntary Churn (And Help Win Your Customers Over)

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Ensure your dunning messages clearly explain what has happened, how the customer needs to proceed, and what the next steps are if they fail to make payment.

3- Use card updaters

For merchants who accept credit or debit cards for recurring charges, expired card numbers can be a leading cause of failed payments and involuntary churn.

Card updater services offer an alternative to trying to get in touch with customers on your own. In recent years, American Express and Mastercard have both accelerated innovation in the field and it’s now easier than ever to automatically update card details. 

Compared to trying to get in touch individually, automatic card updaters help you to retain customers while saving time for everyone involved.

American Express offers a service known as Cardrefresher which allows merchants to keep customers’ Amex card details up to date. The service offers daily updates. Merchants can receive the updates directly or through a vendor or processor that updates their recurring billing or card-on-file data.

The Mastercard Automatic Billing Updater is a similar service designed to assist merchants in keeping their on-file card information current. In the Mastercard system, issuers submit account changes to Mastercard’s database, which merchants can access and use to update their own records.

4- Offer multiple payment options

By multiplying the options for payment, and allowing customers to enter a backup option if one fails to process a payment, you increase the likelihood of successful payment and decrease your customer churn rate.

For truly global businesses, make sure you’re partnered with a payment gateway like PayTabs that supports multiple currencies. Nothing is likely to send customers elsewhere than not being able to pay in the currency of their choice.

7 Strategies That Are Proven to Reduce Involuntary Churn (And Help Win Your Customers Over)

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5- Encourage direct debit for recurring payments

Direct Debit refers to when customers give their banks the authority to automatically pay recurring charges. It has been one of the most useful banking technologies for businesses that rely on these recurring payments. It is the preferred arrangement for paying utility bills such as gas and electricity and for subscription services such as SaaS business models.

In today’s international payment environment, the best way to get set up for direct debit payments is to enlist the help of a globally-minded payment gateway, that gives you access to the different technologies used to process direct debits around the world.  For example, EG-ACH in Egypt or Masav in Israel.

Remember that direct debits can be used for both incoming and outgoing payments. As well as helping you to reduce involuntary churn by making repeat payments easy for your customers, it can be one of the best tools for affiliate marketing by helping you to pay your affiliates on time.

6- Optimize your retry cycle

Businesses that rely on some form of electronic payment usually implement a retry cycle that automatically attempts to process a payment again when it fails.

7 Strategies That Are Proven to Reduce Involuntary Churn (And Help Win Your Customers Over)

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Retry cycles are especially important in fields such as mobile eCommerce in which retailers are entirely dependent upon virtual payment methods.

When thinking about your retry cycle, it helps to divide declined payments into what are known as hard declines and soft declines. 

A hard decline is when the issuing bank does not approve the payment. Causes of hard declines include:

  • Stolen Card
  • Invalid Card
  • Closed Account

With hard declines, you often need to ask the customer to retry, usually with a different payment method.

A soft decline happens when the issuing bank approves the payment, but the transaction fails at some other point in the process. Typical reasons for a soft decline are:

  • Processor Declined.
  • Card Activity Limit Exceeded.
  • Expired Card.
  • The Purchase is Unusual.
  • The Billing Address and the IP Address Do Not Match.
  • The Card is Being Used Abroad.

For soft card declines, it is best to retry the payment at least once straight away. For hard declines, the ideal retry cycle is to retry again over the coming days or weeks. This gives people a chance to rectify the issue, for example by adding new payment details or funding their bank account if the card has insufficient funds.

7 Strategies That Are Proven to Reduce Involuntary Churn (And Help Win Your Customers Over)

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7- Don’t cancel unpaid subscriptions

Some businesses automatically cancel unpaid subscriptions without giving the customer a chance to pay another way.

When there’s so much technology out there to help you collect repeat payments, even if your first attempt fails, canceling subscriptions without following up with your customers just doesn’t make sense.

Before canceling any subscriptions, first, you should find out why the subscription is going unpaid. For example, outsourced or inhouse testing might uncover an issue with your payment setup that is causing failed transactions that your customers don’t even know about. If this is happening, canceling the unpaid subscription would create a loss of revenue that could be avoided.

Conclusion

Whether your business model relies entirely on repeat payments, or a combination of payment types, reducing involuntary churn is a simple but effective way to increase your profits.

After all, a happy customer who continues to pay month-in month-out for a service they value is a great thing for any business. These types of customers can help you survive dips in growth and keep the revenue coming in when other sources dry up.

 

Emily Rollwitz Emily Rollwitz – Content Marketing Executive, Global App Testing
Emily Rollwitz is a Content Marketing Executive at Global App Testing, a remote and on-demand app testing company helping top app teams deliver high-quality software, anywhere in the world. She has 5 years of experience as a marketer, spearheading lead generation campaigns and events that propel top-notch brand performance. Handling marketing of various brands, Emily has also developed a great pulse in creating fresh and engaging content. She’s written for great websites like Airdroid and Shift4Shop. You can find her on LinkedIn.

Ecommerce vs Digital Marketing: A Comparative Guide to Help Your Business Succeed

Ecommerce vs Digital Marketing: A Comparative Guide to Help Your Business Succeed
These two terms, ecommerce and digital marketing, are often used synonymously. In fact, they refer to two very different things. If you have an online business or work in one, it’s important to fully understand the differences.

Where it gets confusing is that ecommerce and digital marketing often go hand in hand. Both can also exist independently. For example, an ecommerce business could trade without digital marketing. Similarly, digital marketing could be used by a physical business.

Introducing Digital Marketing & Ecommerce 

Basically, ecommerce is the act of selling online. Whether that’s through a mobile app or an ecommerce site, it’s all ecommerce. Digital marketing, on the other hand, is the act of marketing through digital channels. Social media ads, email campaigns, and so on. They are similar and often complementary disciplines. Many businesses will make use of both. Almost all businesses will use one or the other at some point. 

What do we Mean by Ecommerce?

Let’s look at ecommerce in a little more depth. We’re talking about selling online or through an app. But we’re also talking about how you deliver the goods to your customers. Logistics is an important part of ecommerce. 

The latest figures show that in 2020 73% of UAE consumers were shopping more online than ever before. With an overall growth in ecommerce sales in the Middle East and North Africa of 19.8%.

This market is expected to grow to $49bn by 2025 . You can see from these figures alone why ecommerce is now a vital part of the global economy. In addition, the growth in ecommerce popularity has led to new opportunities for digital marketers

Ecommerce vs Digital Marketing: A Comparative Guide to Help Your Business Succeed

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What is Digital Marketing?

Digital marketing means any form of marketing using digital means. That means ecommerce applications like banner ads and mobile notifications. But could also mean email campaigns, text adverts, social media ads, and more.  

The goal of digital marketing is much the same as any other marketing. You’re looking to promote your brand to the largest number of interested customers you can. Having a digital marketing strategy lets you keep the tone and message consistent across platforms. 

Here are some of the more popular examples of digital marketing today;

 

  • SEO 
  • Email Marketing & Automation
  • Viral Marketing
  • Social Media Marketing
  • Pay Per Click & Pay Per Conversion 
  • Affiliate Marketing
  • Native Advertising 
  • Image & Rep campaigns 
  • Point of Sale cross-promotion

 

Compared with traditional marketing, digital marketing has the advantage of accessibility, visibility, cost and popularity. Digital marketers should look at future trends. Think about questions like ‘how will mobile apps affect the future of digital marketing?’ 

Can Digital Marketing & Ecommerce Work Together?

The answer is a resounding yes. They can, and should, work together. It’s hard for any business to succeed without making use of digital marketing techniques..  

Digital Marketing & Ecommerce Hand-in-Hand

Take the example of a SaaS (Software as a Service) business. What is a SaaS company you ask? Well, they sell software, usually on a supported subscription model, to other businesses. They operate entirely online, with many using remote workforces.

 

This means there are no physical locations, no passing trade. Every customer has to be gained through direct or indirect marketing efforts. Digital marketing is a vitally important part of the marketing strategy for a business like this. The same is true for many ecommerce sites.

Digital Marketing & Ecommerce for Physical Retail

That doesn’t mean that digital marketing is only used by ecommerce businesses, though. Digital marketing should form an important part of any retailer’s marketing strategy too. Both large businesses and local businesses can boost revenues with digital marketing techniques.  

 

Hosting a blog with local interest pieces can help drive traffic to local companies. Sharing your successes, or the community work you do, on social media can have a big impact on reputation. Digital marketing goes beyond just putting your products in front of the customer. 

 

Remember those ecommerce stats we cited earlier? Well, research also tells us that many businesses in the Middle East reported that in 2020 a quarter of their sales were online. Moreover, 85% of MENA consumers have shopping apps installed on their phones. These figures are only growing year on year. 

Ecommerce vs Digital Marketing: A Comparative Guide to Help Your Business Succeed

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As a physical retailer, ignoring the growth of these markets could seriously harm your business. Even your local customers will appreciate the opportunity to use a website or app if they choose to. 

This doesn’t mean you have to move away from your high-street roots. The key for a physical retailer is to make both experiences complimentary. Look at the potential for integrated customer data. 

This means that across your online and physical retail options, you make the customer experience consistent. A customer can fill a basket in your app and complete the transaction in-store, or vice-versa. 

This should also extend to your digital marketing efforts. If customers sign up for your newsletter, let them use the same email details etc. when they open a customer account. 

Does Ecommerce Need Digital Marketing to Succeed?

In short, yes. There are physical methods that will work well for online businesses, but digital marketing will make up the majority of your strategy. You can use consultants or account managers to promote your service. 

You could also look at billboards and local news advertising. The problem with many physical methods of advertising though is the cost. 

Some digital marketing approaches are also cost-intensive, it’s true. But the wealth of word-of-mouth advertising, available through low-cost social media campaigns, is too much for small businesses to ignore. 

Ecommerce vs Digital Marketing: A Comparative Guide to Help Your Business Succeed

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Digital Marketing: Practical Benefits

Let’s look at some of the direct benefits of digital marketing that your business could make use of. Many of these techniques require data collection and analysis to get started. So, make sure your records management systems are able to keep up.

Targeted Marketing

This means directing your marketing at the groups who will respond to it best. Using customer demographic data, you can analyze habits and preferences to optimize your advertising. Having a flexible digital marketing strategy allows you to easily run several concurrent campaigns. You can target these at different groups to get the optimal response rates. 

This can be very useful if you’re launching a new product or service, too. Target the early adopters, the customers who are most interested in your products. These customers will generally be the most willing to give feedback when asked. 

You can integrate this with your quality assurance strategy to gain useful customer data before a general release. Then, make this a part of your qa metrics. This will help you gain a picture of how your customer base will respond to a new product or process. 

Personalization

Personalization is becoming an important brand differentiator. This is when a website or app will adjust the adverts, notifications, or the products it shows you based on your customer profile. We’ve all seen examples of it, some apps even do it whether we’re aware of it or not.  

According to a recent study of consumers in the Middle East, personalized emails have an open rate of 19.34% in comparison with 7.91% for broadcast emails. There is also a very visible increase in click rate when push notifications are personalized. This jumps from 5.58% to 21.12%

This shows that there is both huge potential in personalization, as well as high customer demand for it.  

Loyalty & Satisfaction

Then, it follows that servicing these demands will increase your customer satisfaction rates. Take a look at this case study on Ruroc, an online retailer. They noticed that engaged customers who arrived via paid ads would often bounce from product detail pages.  

Simply by adding a “similar styles” viewer to their app for paid ad viewers saw a huge turnaround. Thanks to this one little touch of personalization, they saw the following changes:

 

  • 19% decrease in bounce rate.
  • 67% increase in conversion rate.
  • 25% increase in average order value.
  • 109% increase in average visit value.  

Ecommerce vs Digital Marketing: A Comparative Guide to Help Your Business Succeed

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Ecommerce: How to Drive Success

So, let’s talk about how we can use these digital marketing techniques in ecommerce for a more successful business. 

Personalized Shopping

Use the data you collect from your customers to feedback and improve their shopping experience. Often, your customer’s habits will tell you more about them than more traditional marketing questionnaires. 

You might implement push notifications for your mobile app, for example. You could personalize these based on your customers’ shopping habits. Give them personal deals on products that are relevant to them. This way, you’ll see increased uptake rates. This will have a knock-on effect, increasing your average customer lifetime value. 

Optimization

Optimizing your platform is important, whether you’re operating an ecommerce site or app. 71% of UAE ecommerce sites have a bounce rate of 50%. One of the main reasons behind this is if a website or app takes more than three seconds to load. The longer the load times, the higher the bounce rate. Make sure you optimize for mobile and desktop. 

QA testing should form an important part of your optimization. Testing is very important to a successful app or ecommerce site. Put in place a QA testing strategy and come up with a qa test plan template.

Customer Experience

Customer experience is everything in online retail. According to research, 65% of consumers in the Middle East seek curated experiences. This encompasses all parts of the buyer’s journey. Not just the experience of buying itself, which should be fast and simple. You should also think about the after-sales support, customer service, and reliable delivery. 

Final Thoughts

Keep your customer experience in mind, whether you’re pursuing ecommerce, digital marketing, or both. Keep in mind that an integrated digital marketing strategy needs to include all parts of your business. From your sales reps to your remote contact center agents.

 

Kate PriestmanKate Priestman – Head Of Marketing, Global App Testing
Kate Priestman is the Head of Marketing at Global App Testing, a trusted and leading end-to-end functional testing solution for QA challenges. Kate has over 8 years of experience in the field of marketing, helping brands achieve exceptional growth and mobile compatibility testing, She has extensive knowledge on brand development, lead and demand generation, and marketing strategy — driving business impact at its best. Kate has also written great articles for sites such as angelhack and CBNation. You can connect with her on LinkedIn.

5 Key Differences Between Cross-selling And Upselling (+ Why And How to Use Both)

Cross-selling and upselling are proven sales and marketing techniques. 

Both techniques offer customers in the sales funnel the opportunity to purchase additional products and thereby increase sales. However, they are very different in terms of what they offer, how they are used, and what’s required to sell them.

Get it right and you will increase revenues and give your customers a positive purchasing experience. Get it wrong and not only will you end up with high levels of shopping cart abandonment, but your customers will also be left frustrated and take their custom elsewhere.

5 Key Differences Between Cross-selling And Upselling (+ Why And How to Use Both)
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What is it?

Let’s keep it simple:

Upselling offers the customer the chance to purchase the same product, but a better version. For example, a customer may wish to purchase a bluetooth headset for phone calls. While they have chosen the basic model, the sales operative could recommend the same brand of headphones but a high-end model with additional features as an alternative at a higher price.

Cross-selling offers the customer add-on products that they may not have originally intended to purchase but will complement the original item. An excellent example is the purchase of a mobile phone. The mobile phone on its own will be fine, but a great cross-seller would suggest the purchase of headphones, a protective case, or even an additional phone charger and cable.

What’s the difference?

Yes, they both offer sellers the chance to increase the average value of sales. But that’s it. Here are five key differences between upselling and cross-selling:

  1. Upselling increases sales values by offering a higher quality product while cross-selling is about offering more products. Perhaps you created a software program for inventory management for Shopify. Your customer subscribes to the basic package, but they are expanding their operations. You could upsell the next tier that will meet their additional needs for an increased fee.
  2. Offering a similar item to the one the customer initially selected is upselling. Cross-selling, however, offers different items that may complement the chosen product. A fast-food vendor may offer a supersize meal. That is upselling. However, when they ask if you want fries with your burger, that’s cross-selling.
  3. Upselling requires in-depth knowledge about one type of product, all the varying levels of quality and models available for that item, and how that will add benefit to the user. Cross-selling incorporates a wider range of products, therefore more knowledge is required about what products will complement the original sale and how they will all add benefit to the user.  
  4. Revenue is increased from the sale of a single product in upselling, but cross-selling makes multiple gains from the sale of several products.
  5. Large single-item markets offer the best opportunities for upselling. If someone wants to buy a widescreen HD TV, upselling allows the opportunity to offer a 55-inch screen compared to the 50-inch one they are looking at, or even the 4K version, but offers have to be about a TV.

However, the opportunities for cross-selling are much wider because they can be done in and across any market. Along with the TV, you could also offer them a 3-month free trial of a streaming provider, or perhaps a deal on a media package.

Why use Upselling and Cross-selling?

The opportunities provided by upselling and cross-selling should not be underestimated.

Increased revenue

Upselling and cross-selling will boost revenues.

According to McKinsey, cross-selling alone can increase sales by 20% and profits by 30%. While Sumo claims upselling increases revenues by 10-30%.

Figures like that are impossible to ignore.

Personalized customer experiences

Customers want every step of their purchasing journey to be tailored to them, from advertising, to purchase, and post-purchase. They want to engage with brands that have done their work and know what they want before they know it themselves.

When you can make recommendations that are relevant to their purchasing behavior, customers are far more likely to make that purchase because they feel you have tailored that package for them.

If you want to build a better site, you need to make sure it can adapt and offer personalized experiences for your customers by making specific and relevant recommendations, not a popup featuring random items.

5 Key Differences Between Cross-selling And Upselling (+ Why And How to Use Both)

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Increased customer retention

When you offer relevant recommendations that are tailored to your customers, you build brand loyalty. Customers who continue to return, help you generate a higher customer lifetime value; the net profit that you can achieve from a customer for the duration of their relationship with you.

We live in a competitive world. It’s more cost-effective to focus on customer retention rather than customer acquisition.

If your upselling and cross-selling strategies offer your customers the opportunity to buy everything they need from a single location you are demonstrating that you know them and care about their choices. This convenience will help you create long term customers who are loyal to your brand.

Less selling, more sales

Random sales recommendations will frustrate your customers rather than encourage them to make additional purchases. Your recommendations should be reframed as a solution to their problem, rather than a pushy sales gimmick.

For example, you provide quality assurance testing, and your customer wants help with product quality improvement for their latest hairdryer. Offering additional services for testing electric toothbrushes, because that’s a new service you want to push, is not going to help them.

Upselling and cross-selling should increase the average order value ensuring every sale is optimized.

Providing recommendations to customers who are already engaged increases the average order value in the short term and the customer lifetime value in the long term. Cross-selling alone helps introduce products that your customers may not have known were available.

How to Use Upselling and Cross-selling

Now you know the benefits, you need to know how to use cross-selling and upselling to achieve them.

Here are a few tips:

1. Know your audience

76% of people expect personalization these days. You can’t personalize your customer experience until you know them. That means research.

You must engage in ongoing studies of your customer base using analytical tools and key demographics. Perhaps you could involve your staff in an innovation challenge to help write the perfect script to maximize upselling and cross-selling techniques that demonstrate knowledge about both your products and your customers’ needs.

If you want your upsell or cross-sell to feel genuine, rather than aggressive, it needs to resolve their problem. Understand why your customers need your products, what problems they solve for them, and tailor your offer to add value.

2. Keep it simple

If your upselling or cross-selling techniques overwhelm your customers, you need to tone it down. Use empathy maps to learn how your customers feel about their experience. Are you bombarding them with discounts and offers that only create confusion and lead to a negative experience?

It’s best to keep it simple. Limit your upselling and cross-selling offers to products that are relevant to that customer.

3. Price

Always be aware that pricing can make or break your success using upselling and cross-selling offers.

With upselling, you want to offer upgrades that solve problems but are still within the customer’s price range. For example, your customer may want to upgrade their user testing app but has a limited budget. There’s no point in offering the premium package if it is five times the cost of their current package. Keep your solution reasonable.

Likewise, with cross-selling, add-on items should be priced lower than the original product to increase the likelihood of a purchase. No one will buy a shoe cleaner that costs more than the shoes.

4. Pre-purchase and post-purchase

Before and after a customer pays, are the perfect opportunities for upselling and cross-selling, especially in eCommerce.

Online supermarkets make the most of pre-purchase opportunities with the ‘have you forgotten…’ pop-up once a customer clicks on the checkout button.

Amazon is an excellent example of how to use post-purchase cross-selling. At the bottom of their order confirmation emails, there’s always a list of additional items that other customers have purchased.  

5. Product bundles

Who doesn’t like product bundling when you can buy a group of related items together, for much less than you would pay for them separately?

Maybe you’re an online advice blogger with pay-per-view access, but your how to rate an app page is outperforming your app testing page in terms of hits. Perhaps you could offer them together with a buy one, get one free deal?

Bundles offer shoppers a convenient opportunity to purchase multiple products, but in a way that doesn’t come across as pushy. A customer is more likely to accept a cross-sell if it’s packaged as a deal.

5 Key Differences Between Cross-selling And Upselling (+ Why And How to Use Both)

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Beware…

Upselling and cross-selling are one of the easiest ways to increase both sales conversion rates and average order values.

However, to strengthen your relationships with your customers you must make them relevant and personalized.

To get those conversions you need to understand your customers and their needs, and tailor your recommendations so they add value and help buyers resolve their problems.

Aggressive, pushy, and irrelevant upselling and cross-selling only leads to confused and disgruntled customers who will walk away from their purchase and lose their trust in your brand.

 

Kate PriestmanKate Priestman – Head Of Marketing, Global App Testing
Kate Priestman is the Head of Marketing at Global App Testing, a trusted and leading end-to-end functional testing solution for QA challenges. Kate has over 8 years of experience in the field of marketing, helping brands achieve exceptional growth. She has extensive knowledge on brand development, lead and demand generation, and marketing strategy — driving business impact at its best. Kate Priestman also published articles for domains such as CEO Blog Nation and VMblog. You can connect with her on LinkedIn.

9 Tips For Boosting Your Payment Acceptance Rate (That Will Surely Improve Customer Experience)

Scopophobia is the fear of being stared at. We’ve all experienced this before. Picture the scene: you’re standing in front of the queue in a busy shop, trying to hurriedly pay for your items. Then come the dreaded words on the card machine: PAYMENT DECLINED.

Well, this problem is not limited to brick-and-mortar stores. If you’ve ever run an online store you will know that transaction errors are pervasive.

And whilst online transaction failures might not induce scopophobia, they are certainly frustrating for businesses and customers alike. In Europe alone, e-commerce transaction failures cause an estimated annual €82 billion loss for businesses.

Understanding why payments fail will put your business in a stronger position to retain willing customers. In this article, we’ll show you how to calculate payment acceptance rate, and our top tips for improving it.

What is payment acceptance rate?

Payment acceptance rate is simple to calculate. You only need to know the number of successful transactions compared to the number of attempted transactions.

But what is a good payment acceptance rate?

The answer to that question depends entirely on the context of your business. Generally speaking, you’ll want to aim for an 80% acceptance rate at least.

Why? It’s one of the key test execution metrics for assessing the customer conversion rate of your online store. After all, if you can’t accept payment from customers, then you can’t do any business with them.

9 Tips For Boosting Your Payment Acceptance Rate (That Will Surely Improve Customer Experience)

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Why do some payments fail?

Unfortunately, there’s not a simple answer to that question. It may be for lack of funds in the customer’s bank account. Perhaps they incorrectly input their details on your payment form. Or it could be that your acquiring bank hasn’t allowed the transaction (we’ll get to that later).

That is not to say that your business cannot take steps to reduce failed transactions. In this article, we’ll outline 9 tips for remedying this problem.

What can you do to boost payment acceptance?

Create the perfect checkout

Once your customers have reached the checkout page, the decision to buy a product or service will have already been made.

Now all that’s left is to ensure the customer’s payment goes smoothly. If it fails the first time, the likelihood is that they’ll lose patience and willingness to try again. In fact, online merchants lose 62% of customers after the first failed transaction.

In the competitive world of online commerce, there is a firm expectation that your checkout is free of barriers or complications. So, let us share our top tips for achieving this:

Stick to simple

Above all, your checkout needs to be intuitive. Overwhelming your customers with a plentitude of forms and menus is a no-go. A CXL study found single-column forms were filled out on average 15.4 seconds faster than multi-column forms. In short, simple checkouts are faster, meaning a higher conversion rate for your business.

Focus on the information you need by limiting the number of fields and indicating the optional ones. Lastly, arrange your payment form so the most time-consuming fields are at the bottom. Once the easy part is done, your customers will happily follow through with the rest.

9 Tips For Boosting Your Payment Acceptance Rate (That Will Surely Improve Customer Experience)

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Focus on user-friendliness

Now the basics have been covered, you’ll want to make a few accessibility improvements.  It’s essential that your customers feel cared for and appreciated. Minor changes like showing the total cost at each step will help eliminate doubts about payment.

An often-overlooked addition is the humble progress bar. This visual reminder will assure your customers that finalizing their payment is just a few clicks away.

You may also want to add an auto-complete feature. For example, the customer inputs their zip code, and your checkout fetches the full address for them. Any mechanism for saving time and effort will push up that coveted customer conversion rate.

Reduce waiting times

Online commerce is all about convenience. If a page takes too long to load, there is a very real risk that your customers will leave and never return. According to LoadStorm, even a 1-second delay reduces customer satisfaction by 16%

As such, it’s imperative that you regularly test your site’s loading screens. If load times are excessive, you may need to declutter problematic pages or avoid linking to external sites.

This principle applies far beyond the checkout page of your online store. Customers will quickly become irritated if they feel that your customer service responds in inadequate time. Building a team structure that responds to high-priority inquiries will mitigate this concern. 

Fail to do this? You’ll test your customers’ patience and ultimately risk losing their business.

9 Tips For Boosting Your Payment Acceptance Rate (That Will Surely Improve Customer Experience)

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Offer delivery information

For goods that require delivery, every customer’s question will be: when?

The convenience of online shopping is deeply diminished if that question has the answer: not for a long time. Therefore, the best online stores will focus on achieving fast delivery times, then advertising that fact to their customers.

Investing in a solid inventory tracking system can help with calculating delivery costs and times at an earlier stage. This will boost customer confidence before they reach the checkout, helping to drive up sales.

Don’t forget mobile UX

Since 2016, the majority of e-commerce sales have come from users on mobile devices. Today mobile users have a 72.9% market share of the industry.This has allowed businesses to accept payment from billions of people across the world. However, it has also come with its own drawbacks. One such challenge is that mobile customers are more likely to abandon their shopping carts.

For this reason, it’s more important than ever to build a checkout that is mobile-responsive. Mobile website checkouts should be cross-channel, appearing largely similar to the desktop version.

You may even consider developing a mobile app for your online store. App checkouts will foster higher conversion rates and customer loyalty over their site-based equivalents.

9 Tips For Boosting Your Payment Acceptance Rate (That Will Surely Improve Customer Experience)

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Choose the right acquirer

If you run an online store, you’ll have to find an acquiring bank to process card transactions on your behalf. The acquirer is responsible for communicating with the customer’s bank before a transaction can be made.

This is the point at which many transactions fail, either because the acquirer cannot authorize or authenticate the payment. As such, choosing the right acquiring bank is an important decision for any online store to make. Factors you should consider include:

Geolocation of your customer-base

Firstly, you must think about where in the world your customers are based. Different acquirers will offer support for local languages, currencies, and payment methods.

If most of your customers are from the EU, you’ll want to partner with a European acquiring bank that is adapted to local regulations. For example, they’ll follow adequate risk assessment procedures (such as 3D-Secure verification) to ensure compliance.

Conversely, if you have an international customer base, you may consider partnering with a single payment provider. This can save you the money and headache of trying to select multiple acquirers for different regions.

Tokenization

Another consideration is to look at which services offer ‘tokenization’. This is a way of saving your customer’s payment data so that it may be automatically filled in on future visits.

There are many advantages to using tokenization. Namely, lower costs and improved security. It’s cheaper for your business as PCI compliance will be accounted for by your payment partner. It also encrypts your customer’s data and prevents it from being stolen by fraudsters.

Accept different payment options

Offering alternative payment options is an attractive method of enticing customers from around the world. Visa and MasterCard are standard in online commerce, and you must accept these forms at the very least.

Increasingly however, online stores are accepting PayPal or mobile payment options from customers. Mobile apps are particularly easy to integrate with Apple Pay or Google Pay. The convenience of pressing a single button to make a payment cannot be understated. It offers a far more timely result for the customer than filling in an entire payment form.

Of course, you may notice that problems arise more often using certain payment methods than others. In this case, you may find using regression testing services helps identify the root cause.

9 Tips For Boosting Your Payment Acceptance Rate (That Will Surely Improve Customer Experience)

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Communicate with your customers

Failed payments are part and parcel of online commerce, even if you follow every precaution on this list. That does not mean to say that all hope is lost. Often, reaching out to your customers after a failed attempt will prompt them to try again.

Having systems in place to automatically detect and respond to failed transactions will surely improve your customer conversion rate. This could be a simple follow-up email, or invitation to talk via voice over IP intercom.

Of course, the result will come down to the individual case. Generally speaking though, the faster you attempt to communicate, the greater the chance of success.

Conclusion

This article was written to help you understand the many facets of payment acceptance. By now you should have a good idea of why payments fail, and how to remedy those cases.  Following the tips outlined above should assist in increasing customer conversion rate on your online store.

Kate PriestmanKate Priestman – Head Of Marketing, Global App Testing
Kate Priestman is the Head of Marketing at Global App Testing, a trusted and leading end-to-end functional testing solution for QA challenges. Kate has over 8 years of experience in the field of marketing, helping brands achieve exceptional growth. She has extensive knowledge on brand development, lead and demand generation, and marketing strategy — driving business impact at its best. Kate Priestman also published articles for domains such as VMblog and Stackify. You can connect with her on LinkedIn.