Understanding each of the sales metrics is important to bring clarity when analyzing the performance of your online business.
Often, entrepreneurs can make the mistake of thinking that checkout conversion rate and approval rate are the same thing, which prevents a correct analysis of the company's results.
Checkout Conversion vs. Approval Rate
payment flow scheme
The checkout conversion rate, as the name suggests, is directly related to the performance of the payment experience. In other words, it evaluates the number of people who completed the purchase when they reached the payment stage.
In this case, to have a high conversion checkout , it is necessary to finland mobile database features such as security, good adaptation for mobile devices, various payment processors, as well as a speed that is within parameters, such as Google, for example, which reveals that websites with good performance take a maximum of 3 seconds to load.
Therefore, a checkout that does not have these qualities can lead to the purchase being abandoned at the time of payment. This is actually known as checkout (or cart) abandonment and the main reasons are listed below:
checkout experience: long, too complex or slow-loading process;
pricing or offer format: product price, high shipping costs, installment options or payment methods that do not suit the user;
non-target audience: curious people who click on the “buy” button, but have no real interest in the product, which indicates that the seller attracted the wrong audience.
The approval rate measures the number of approved payments in relation to the total number of transactions made by the payment processor. In other words, even after checkout, there is a possibility that the payment will be declined. This happens for several reasons, which may be related to the payment processor, banking system, or the customer profile. Below we list the main ones: