Assessing the most strategic and efficient methods to increase revenue is a challenge, especially as what works at one point might prove less effective later on. With business revenue increases subject to market shifts and variable demand, figuring out sticky ways to attract and retain customers is complicated. For enterprise businesses, this can also mean establishing and maintaining a differentiated and well-defined, yet agile and adaptable, position in the market.
Traditional growth strategies to increase revenue include raising prices, ramping up marketing spend, expanding sales teams and launching new products. In addition to these tried-and-tested options, meaningful tools also exist that can have an effect on revenue increase. One under-utilised path to revenue growth for enterprise businesses is refining and optimising the commerce experience. Embedded within the purchase experience are opportunities not only to improve your customer's overall satisfaction with your brand, but also to expand market innovation, increase geographic reach and boost conversion.
Understanding the ins and outs of the purchase experience – and the financial infrastructure platform that your company relies on to deliver that experience – can help you to carve out a unique and effective path to revenue growth. Here is a quick run-through of relevant tactics and tools for you to consider as you put together a plan to optimise your purchase experience and increase revenue.
What's in this article?
- What defines the purchase experience?
- Why focus on the purchase experience?
- Strategies to increase revenue and improve the purchase experience:
- Optimise checkout
- Expand your accepted payment methods
- Offer flexible financing with buy now, pay later
- Reduce fraud and related payment problems
- Optimise authorisation
- Optimise checkout
What defines the purchase experience?
Understanding the purchase experience requires a solid grasp of the infrastructure mechanics that support your payments system, as well as how your customer will interact with every external detail supported by that infrastructure. It can help to consider your conversion funnel, or the steps that your customer will take before they reach the final, desired step of purchasing your product. As your customer approaches or reaches the point of purchase, what barriers might they encounter? Where are opportunities to make the moment of purchase as fast and seamless as possible?
Designing a fast, smooth purchase experience has tangible benefits. Given that around 70% of online shoppers will place an item in your basket only to abandon it, understanding how to simplify this stage for your customer is important. Thinking through each step and option that your customer is presented with – from payment methods to guest checkout – will help you form a more complete picture of the purchase experience.
Why focus on the purchase experience?
Improving the purchase experience brings important benefits, ranging from increasing conversion to improving customer satisfaction and generating brand loyalty, not to mention a potential revenue increase. When leadership sits down to assess the possibilities for business expansion, the purchase experience can often be overlooked. However, it is in fact one of the most powerful tools available to strategically and comprehensively increase revenue.
Strategies to increase revenue and improve the purchase experience
What does it look like, in practice, to create a commerce experience that's optimised to increase revenue for enterprise businesses? At a high level, it's about building a payments ecosystem and checkout experience that enable customers to pay for purchases however, whenever and wherever they want to.
When considering how to increase revenue, here are a few key moves:
Optimise checkout
When setting out to finesse your business's checkout process, bear in mind the qualities that customers care about most: speed, ease of use and security. Whether you are accepting payments in person or online, a clunky checkout process will frustrate customers, discouraging them from returning or even completing their purchases.
For e-commerce businesses, considering ways to remove barriers from your website's checkout process can mean adding an option for guest checkout or pre-filling customer information. Stripe offers an assortment of solutions to help speed up the checkout time, such as Link by Stripe, which allows customers to complete purchases with one click, or Stripe Elements, which allows businesses to take advantage of auto-fill, error messages, input masking and customised design to match your existing CSS style. All of these features improve conversion, potentially leading to a revenue increase. Stripe Terminal allows you to apply many of these principles to in-person checkout.
The benefits of streamlining your checkout process go beyond customer satisfaction. Optimising checkout also increases the number of customers that your business is able to process in a given amount of time. In addition, if a customer has a smooth purchase experience with your brand, they're more likely to return. The benefit of increasing your conversion rate – and in the process making your customers happier and therefore more likely to return – will have a positive long-term effect on increasing your revenue.
Expand your accepted payment methods
It is important to consider the global and local level when deciding which payment methods to accept. Accommodating the payment methods that your customers prefer – no matter where they're based – establishes the trust and convenience required for conversion. In addition, as over 70% of e-commerce businesses make sales around the world, offering a limited range of payment options doesn't make sense.
Understanding the benefits of accepting different payment methods – as well as the unique opportunities for your business to expand payment options in certain regions – can help you to increase the number of transactions that your business is able to process, while providing access to entirely new markets. In China, for instance, 54% of online transactions involve WeChat Pay or Alipay, while 20% rely on the local card network, China UnionPay. Failing to offer these payment options means losing out on a significant portion of Chinese customers.
Solutions such as Stripe Payments help enterprise businesses to keep pace with the payment options required to stay competitive with a global sales strategy. With more than 135 currencies and 50 supported payment methods, Stripe Payments helps businesses to maximise their revenue potential, all through a single integration. This will help your company smoothly and easily increase revenue in your key markets by offering the right payment methods, allowing you to access customers and markets that you wouldn't be able to otherwise.
Offer flexible financing with buy now, pay later
Another way to capture more customers is by offering flexible financing. Research shows that 50% of consumers in the United States have used a buy-now-pay-later (BNPL) service and that offering such a service increases conversion and the average transaction value.
BNPL payment methods not only offer flexibility and convenience to maximise checkout conversions, but also reduce fraud and increase transaction speed as they enable retailers to reach buyers who want to pay over a period of time. BNPL allows buyers to customise their payment terms and break up purchases into smaller instalments. Your business is paid in full and up front, while your customer pays either nothing or a small portion of the total cost at checkout.
Offering BNPL to your customers can help your business:
- Increase average order value
- Boost checkout conversions
- Reach a wider consumer audience
Results may vary by vertical and geographic location, but businesses that offer BNPL payment methods through Stripe have seen the average order value increase by as much as 14.5%.
The benefits of BNPL to both businesses and consumers are plentiful: No matter which BNPL option your customer chooses, you receive the total purchase amount in full and up front. In addition, as the BNPL provider handles the tasks of underwriting customers and managing and collecting payments, offering these payment methods doesn't require a lot of extra resourcing. BNPL methods also offer businesses a comfortable degree of security – if a customer files a fraud-related dispute, the BNPL provider takes on the risk and any associated costs.
Reduce fraud and related payment problems
When considering the purchase experience in relation to a potential revenue increase, the challenge presented by fraud is unavoidable. Around the world, online fraud has increased. In a survey of 2,500 business leaders, Stripe found that fraud had become more difficult to combat for 64% of respondents since the start of the pandemic. Confronting fraud costs money. It's expensive not only to deal with fraudulent transactions, but also to spend time and energy trying to prevent them. That operational overhead is significant. In the same survey, 72% of business leaders said that they had to divert resources to respond to fraud, while over half said that they had to put off expansion or investment plans in order to tackle fraud.
Then, of course, there is the cost to your customer. While businesses may understandably respond to the ever-increasing threat of fraud by ramping up efforts to fight it, this often leads to a related problem: being too quick to block legitimate charges. False declines can hurt your revenue and your reputation. On one level, a false decline will slow down the checkout process, adding friction and making it less likely that the transaction will be completed. However, research has shown that a false decline is not just an inconvenience for the customer. Blocking one purchase often has a lifetime impact, dissuading customers from returning in the future.
There are a number of ways to prevent and deal with fraud and the wide range of issues that it can present to your company. Some are relatively simple. For instance, when dealing with online payments, you can consider tools that help to link your customer's financial accounts directly, in order to send payments more easily and securely. Products such as Financial Connections authenticate users with bank account information quickly, helping you to streamline the purchase experience and make it easy for your customer to return and make another purchase in the future, offering a good option to increase revenue.
Optimise authorisation
There are other tactics that you can use to improve your authorisation rates. With Stripe Payments, you can access issuer-optimised authorisations powered by machine learning (ML). You can also find tools that help to recover declines that were made in error. Adaptive Acceptance, for example, uses ML to strategically retry certain payments immediately, before the customer even receives notice of a decline. In a matter of moments, it can also consider the optimal retry messaging and routing combinations, and also run a variety of experiments to discover what might result in a successful charge. Tools like these help to make it more likely that your customer will be satisfied, increasing the likelihood of a successful transaction and even helping you to recover revenue that has been lost via false declines.
Tools designed to proactively target and fight fraud also exist. Stripe Radar, for instance, is trained with billions of data points from companies of all sizes around the world. With payments, checkout and card network data, Radar is able to assess risk accurately, and detect and block fraud without getting in the way of legitimate customers. Altogether, tools and tactics that help you to detect and prevent fraud and contain the damage that fraud can cause – from losing revenue and customers, to incurring huge operational costs – are essential to any business that operates even partly online today.
To learn more about Stripe's suite of tailored solutions for enterprise businesses, contact our Sales team here.