The ecommerce space is a veritable minefield. Full of brutal competition, ever-moving regulatory goalposts and buyer behaviours and preferences more fluid than the coffee that gives you the strength to deal with it all!
Ecommerce businesses are faced with tough decisions daily. They cannot optimise everything themselves. In trying to manage business-critical metrics like cart abandonment while also improving fraud detection and providing a smooth checkout experience for buyers around the world, they can easily end up doing none of those things effectively.
But while cart abandonment, fraud detection and your payment process are 3 of the most important areas you should focus on to grow your ecommerce business, they’re by no means the only things.
The advantage of having a virtual payment manager overseeing these issues and other vital revenue-generating ones is that you know you have an expert on your side.
One that’s working to protect your revenues while you focus on the strategic growth of your business.
What is a Virtual Payment Manager?
Sometimes the term ‘online payment management’ is used synonymously with virtual payment management or virtual payment managers, but they all mean very much the same thing.
That is, a virtual solution to managing the payments for your ecommerce business. You may be thinking “why do I need someone managing my payments? Customers buy things and I get money – it just works” but this is one of those occasions where you don’t know what you don’t know.
Specifically, you don’t know what you’re missing out on until you’re shown what could be instead of always looking at what is.
6 benefits of working with a Virtual Payment Manager
To help you understand the benefits of a virtual payment manager, here are 6 major ways that having one on your side could dramatically improve your ecommerce business’s performance.
- Enable faster checkouts
Providing your customers with a more integrated, seamless checkout experience is one of the most impactful ways to reduce cart abandonment and increase your sales.
The average cart abandonment rate across ecommerce sites is around 70%. While many of these customers will have been browsing and never intended to make a purchase, some of the most commonly cited reasons for giving up may sound familiar:
- Additional costs (shipping, taxes, fees etc) too high (50%)
- Forced account creation (28%)
- Overly long or complicated checkout process (21%)
Notice how the last 2 can both be solved with an easier and quicker checkout process.
A VPM can use their strategic expertise to improve your checkout experience and in doing so, help you save roughly 20% or more of your abandoned sales.
- Always offer the most relevant payment methods
Payment methods are like ice cream flavours – everyone has their favourite and some people are simply not willing to try anything else.
Understanding what the most relevant payment methods for each customer are each time they check out, is a job that a good virtual payment manager will be happy to take on for you.
The options presented may vary by demographic, geography, basket value and a host of other criteria.
- Improve your checkout experience across devices
Buyers behave differently depending on the device they’re browsing from. Mobile ecommerce traffic is much higher than from desktops, but what device do you think delivers the most sales? Perhaps surprisingly, it’s desktops.
Mobile shoppers tend to browse more, but desktop is where the action happens. A virtual payment manager understands this. And will be able to advise on how your ecommerce brand can cater to audiences on different devices, maximising your sales regardless of what size screen your customers are shopping on.
- Help build buyer loyalty
A good virtual payment manager will bring to your business a deep understanding of consumer behaviour and the available technologies and systems to help improve buyer loyalty.
This could be the best way to save buyer details for future purchases, or it may be a loyalty scheme tied to their payment method and account on your site.
Encouraging regular repeat purchases is made much easier with the weight of a VPM behind you who knows how to get buyers to keep coming back time and time again.
- Reduce payment fraud expenses
Each year the ecommerce industry suffers due to chargebacks and other forms of payment fraud.
You need to strike the right balance of protecting your business without locking out genuine buyers.
Fortunately, there exists a wide range of tools, software and other solutions to do this, but which one is right for your business and your customers?
A virtual payment manager will know the answer since they’re working closely with your business and applying their expert field knowledge to help protect and grow your ecommerce platform.
Projections suggest that payment fraud could cost ecommerce companies $200bn during the 4 years from 2020. If you could put measures in place to reduce the proportion of this that comes from your business now, why wouldn’t you?
- Improve your business intelligence
Ecommerce platforms have millions, perhaps even billions of data points to work with. Contained within that mountain of information are nuggets of gold that a virtual payment manager can use to help shape your strategy and decisions.
Information like preferred payment type, purchasing frequency, the effectiveness of promotions, fraud information and returns data, can build a picture for you and make spotting high growth opportunities easy.
Virtual payment managers help you mine these nuggets so you can accelerate your growth. Finabling has already helped other ecommerce businesses achieve incredible results in our role as a strategic enabler.
To discover how we can do the same for you, contact us for a free consultation today.