This is the second part of the series on the monetary valued of guest checkouts (read the first part here). For the next two parts of the article I will describe a couple of methods that can be used to derive the opportunity loss due to “locked checkouts” – a term I coined; sorry about that – , which are checkouts that require visitors to login or create accounts to finalize the purchase. The first method (which is to be preferred against the second) will generate accurate results and will be based on real numbers, while the second is more likely a forecasting method based on, well, approximations.
The approach described in this article is the only way to compute the exact monetary gains of the guest checkouts and it is actually a split test strategy. You will set up an A/B test, with a conservative split of the traffic, e.g. 90% of your visitors will see the original checkout process (the registration required version) and 10% of the visitors will go through a guest checkout. The conversion page will be the thank you page/receipt page. Keep in mind that to use this method you will need to be able to split the traffic, to two separate paths (URLs).
Let’s suppose this is the first page your visitors will see after clicking on the “Proceed to Checkout” button. This will be the original (A) for your test.
For the variation page (B), you will have to rename the Create New Account to Guest Checkout.
During the next page(s) of the checkout don’t ask for a password or email ID until the end of the process, on the receipt/thank you page. On that page don’t forget to offer an incentive for users to sign up (10% off for the next purchase, personalized offers for members, etc.)
A very good example to follow is actionenvelope.com, on which you can buy as a guest and at the end of the purchase you can create an account:
Compare the conversions and the results by analyzing at the revenue generated by each of the two paths you’re testing! Be amazed!
That’s all folks! It’s not really that complicated, all you need is courage to do it, and some chips and soda for the IT guys :)
PS: Another useful metric to compare is the number of visitors you lose at the sign in page (create account VS proceed as a guest).
In the third part (and the last) of the article, I will describe how you could derive the opportunity loss for guest checkouts, without actually implementing a split test.
loading...






















