The announcement coincided with its full-year results, with growth driven by its jewelry brands.
What Turns Consumers Off When Shopping Online
U.K. firm Klarna turned to college psychology professors to commission a study on what people love and hate about online shopping.
Stockholm--A Stockholm-headquartered company considered to be PayPal’s Swedish rival published a study this past summer on what consumers love and hate about online shopping.
“Emotional eCommerce” is a research report that combines a survey of 2,000 consumers of all ages in the U.K. conducted in June by Klarna U.K. with research from professors in the School of Psychology and Clinical Language Sciences at the University of Reading (England).
The report focuses mainly on what happens at the point of sale that makes a shopper abandon her or his digital cart, and what “nudges” retailers can provide to push the sale through.
According to what retailers interviewed for National Jeweler’s “50 Jewelers/50 States” series have said so far, a very small percentage of fine jewelry sales are made online. Consumers, they say, mostly use their site for browsing and come into the store when they are ready to buy.
But, for those transactions that do take place on the internet, the Klarna report provides some key points about the dislikes of online shoppers.
Let’s examine a few of them below.
1) A difficult check-out process
According to the report, transaction inconveniences--like having to enter a lot of personal data, register as buyer, or technical glitches--are often the No. 1 factor that makes shoppers abandon online purchases.
The study states: “Complex processes, such as registering for a site, are more likely to lead to abandonment for consumers, particularly if they are under ‘cognitive-load,’ e.g., later in the day, when they are tired, drinking or commuting.”
Where possible, retailers should simplify the checkout process. They should not ask for more information than they absolutely need. In instances where simplification is not possible, Klarna suggested adding an incentive for registering, such as free shipping or a discount.
The study also emphasized the importance of having one-click payments in place, meaning building a website that stores customers’ information so they don’t have to reenter their name, address, credit card number, etc. every time they shop.
2) Not knowing how much they are spending
Cost, not surprisingly, is a big factor in the decision-making process for millennials, many of whom are more cash-strapped than members of older generations.
The findings of the study “debunk the myth that items added to a basket show a clear intention to purchase.” Unlike in-store shopping, online shoppers, particularly millennials, are very likely to put items in their virtual cart just to review costs.
(Because of this, the study states, retailers should never expect their online conversation rate to reach 100 percent.)
Retailers can cut down on the number of shoppers who abandon their carts at checkout time by providing cost updates, i.e., making it so that the basket has the running total on it and stays visible throughout the shopping experience.
The study also emphasizes the importance of offering deferred payments, e.g., financing, to online shoppers, particularly those making high-dollar purchases.
3) An ugly website
Visual attractiveness and consistent presentation can help boost purchasing while the opposite can bring it down.
Specifically, the study recommends websites have high symmetry, low complexity, use a blue hue and be of medium brightness and medium to high saturation. The checkout page should be visually similar to the rest of the website because, if it’s not, it might cause the shopper to think twice about their purchase.
Websites also need to have a social presence, meaning it has to make shoppers feel like they are part of a community. The study recommends having online ratings, reviews and recommendations, particularly at checkout.
A PDF of the full report is available from Klarna.com.
The Latest
Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Despite the rising prices, consumers continue to seek out the precious metal.
This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
Despite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Lilian Raji gives advice to designers on how to make the most of great publicity opportunities.
The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
Owner David Mann is heading into retirement.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
The ad aims to position platinum jewelry as ideal for everyday wear.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
Show your mother some love with a piece of fine jewelry.