Up to £6bn in Revenue Left on the Table by UK Retailers and Financial Services Last Year Due to Poor Mobile User Experience
Jumio survey reveals top concerns driving mobile abandonment; a quarter of attempts to purchase a financial product are abandoned
LONDON, UK. – August 18, 2015 – Jumio Inc. today released results from the company’s latest Mobile Consumer Insights study, a look at user behaviour and transactions on mobile, and a follow-up to its 2013 study of the same name. Conducted online by Harris Interactive, the study identifies the driving forces of purchase and account opening abandonment as well as security concerns around transacting on mobile devices. These factors continue to be a major issue among mobile device users, despite consumers’ increased reliance on mobile and the growing awareness of hindrances to mobile sign-ups and checkout. The 2015 Jumio Mobile Consumer Insights Study found that more than one-half of UK smartphone owners (55%) have abandoned a mobile transaction. A survey carried out by Jumio in 2013 showed a global abandonment figure of 66%. Customer concerns about usability made up the top three reasons for abandonment: slow loading times (32%), payment process being too complicated (27%) and difficulty with navigating the checkout process (26%). Customer uncertainty about the purchase only accounted for 21% of all abandonments.
According to the Office of National Statistics mobile commerce revenues reached £15 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 (24%) or financial services (25%) account and around one-third (32%) of those who abandon a transaction do not attempt again.
“As mobile transactions continue to skyrocket, so do abandoned purchases, incomplete account openings, and lost revenue,” said Marc Barach, Chief Marketing Officer, Jumio. “Businesses have heeded the warning and are finally prioritising mobile checkout experiences, underscored by the ten percent improvement in abandonment rates over the last two years,” said Barach, “But, experiences are still far from being as seamless as they need to be in order for retailers to stem the tide of lost opportunity and put a potential £6 billion back in their pockets.”
Further findings from the 2015 Jumio Mobile Consumer Insights Study include:
Fashion is the most frequently abandoned with 53% of respondents abandoning purchases. These rates vary by gender and age, with women (62%) more likely to abandon a clothing or apparel transaction than men (44%).
Surprisingly, the second worst industry for abandonment is food and drink. Despite the popularity of online grocery shopping and ordering take-away food on mobile apps in the UK, 39% of all attempted mobile food and drink purchases are abandoned.
Abandonment rates by industry:
- Fashion – 53%
- Food (groceries or takeaway) – 39%
- Travel – 38%
- Entertainment – 35%
- Household goods – 35%
- Events tickets (concerts or sporting events) – 30%
- Electronics – 30%
- Financial Services application (opening an account, transferring money) – 25%
- Online Gaming (opening an account) – 24%
“While consumers were less likely to say they’d abandoned a transaction that involved opening an account, as compared to making a purchase, this may be in part because these transactions typically require some degree of forethought and commitment, particularly in financial services,” continued Barach. “These businesses still need to keep factors such as ease of use and security top of mind to maximize the number of users who complete their transaction moving forward.”
Usability is key
Usability issues (68%) far outweigh purchase uncertainty (21%) when it comes to shoppers abandoning a mobile transaction. Frustrations over slow load times (32%) and complex payment processes (27%) are more important than concerns over payment security (16%) when shoppers decide to give up a transaction.
- One-third (32%) reported apps/mobile sites being slow to load
- Payment process was too complicated (27%)
- App/site was difficult to navigate (26%)
- Difficult to type information in on small screen (21%)
- 16% reported concerns around security of payment info
- 12% reported concerns around security of personal info
Bargains don’t mean a sale
It’s not enough for a retailer just to have the best prices, getting the purchasing environment right has to be a priority.
The lower the cost of a transaction, the more likely it is that that transaction will be abandoned. So retailers who are promoting low cost items are at the most risk from losing sales.
- £1 – £49 – 39%
- £50 – £99 30%
- £100 or more – 12%
Dependence on Desktops
Two thirds (68%) 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.
- 27% say they made their next attempt from a computer
- 22% tried on their smartphone
- 17% tried on their tablet
Men (73%) are far more likely than women (63%) to attempt a transaction again.
The 2015 Jumio Mobile Consumer Insights Study was conducted online by Harris Interactive on behalf of Jumio, Inc. from June 19-23, 2015, among 1013 UK online adults ages 18+
Jumio is a leading identity management and credentials company that helps businesses reduce fraud and increase revenue while providing a fast, seamless customer experience. The company utilises proprietary computer vision technology to reduce customer sign-up and checkout friction and verify credentials issued from over 120 countries in real-time web and mobile transactions. Jumio’s products are leveraged by a wide range of clients, from the leading internet companies to start-ups, Fortune 500 and FTSE 350 organizations in the financial services, sharing economy, retail, travel and online gaming sectors. Jumio is backed by top tier investors including Andreessen Horowitz, Citi Ventures and Facebook Co-Founder Eduardo Saverin. Headquartered in Palo Alto, California, Jumio operates globally, with offices in the US and Europe, and has been the recipient of numerous awards for innovation from leading industry associations.