COMPANIES ARE ON A MISSION TO design purchase journeys that are as free of frustration and inconvenience as possible. “Friction kills the customer experience!” has become the conventional wisdom. This is thought to be particularly true when serving online shoppers, who are known to be less patient and have shorter attention spans; after all, competitor websites are but a few clicks away.
Most business leaders we know prioritize eliminating friction at the “moment of truth,” when displaying prices and taking payment, because beyond wanting to make life easier for eager customers, they fear giving customers reason to pause and reconsider their decisions. But as we will demonstrate, it is precisely in giving customers time to consider their purchase decisions when money is on the line that longer-term benefits and cost savings can accrue to the firm.
Friction and the Fickle Online Shopper
It’s easy to see why making shopping as seamless as possible is so urgent for e-commerce companies, when the average global cart abandonment rate for the last 12 months stood at a staggering 71.7% overall — 60.7% among people using desktop or laptop computers, 65.1% among those using tablets, and 77.4% for those using mobile phones.¹ This last figure is perhaps the most troubling, given that mobile shopping in the U.S. grew by more than $200 billion in three years to reach $431 billion in 2022.² According to the Baymard Institute, the average large e-commerce site could increase conversion by 35% by streamlining and simplifying the checkout process.³
Esta historia es de la edición Winter 2024 de MIT Sloan Management Review.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición Winter 2024 de MIT Sloan Management Review.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Avoiding Harm in Technology Innovation
To capitalize on emerging technologies while mitigating unanticipated consequences, innovation managers need to establish a systematic review process.
Make a Stronger Business Case for Sustainability
When greener products and processes add costs, managers can shift other levers to maintain profitability.
How to Turn Professional Services Into Products
Product-based business models can help services firms achieve greater scale and profitability. But the transformation can be challenging.
Do You Really Need a Chief AI Officer?
The right answer depends on the strategic importance and maturity of AI in your company.
Where To Next? Opportunity on the Edge
Doing business in regions considered less stable or developed can pay off for companies. But they must invest in working with local communities.
Make Smarter Investments in Resilient Supply Chains
Many companies invest in resilience only after a disruption. Applying the concept of real options can help decision makers fortify supply chain capabilities no matter the crisis.
The Three Traps That Stymie Reinvention
Organizational identity, architecture, and collaboration can be either assets or liabilities to pursuing growth in new sectors.
What Makes Companies Do the Right Thing?
Vaccine makers varied widely in their engagement with global public health efforts to broaden access to COVID-19 immunizations. Ethically motivated leadership was a dominant factor.
Build the Right C-Suite Team for Your Strategy
CEOs can foster a more effective leadership team by understanding when to tap senior executives' competitive instincts and when to encourage collaboration.
A Better Way to Unlock Innovation and Drive Change
A strengths-based approach to building teams can win employee commitment to change and foster an inclusive, agile culture.
