$24.5 Billion in Revenue Left on the Table by Mobile Businesses and Financial Services Last Year Due to Poor User Experience

Jumio Survey Reveals Top Concerns Driving Mobile Abandonment; Nearly a Quarter of Attempts to Open an Online Account Are Abandoned

Aug 18, 2015, 08:00 ET from Jumio

PALO ALTO, Calif., Aug. 18, 2015 /PRNewswire/ -- Jumio Inc. today released results from the company's latest Jumio Mobile Consumer Insights Study, a look at user behavior 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 U.S. smartphone owners (56%) have abandoned a mobile transaction, down from the 2013 survey, which found that 66 percent of respondents failed to complete a transaction due to issues during checkout. After purchase uncertainty, usability issues rounded out the top three reasons why users abandon a purchase or account registration, including slow loading times (36%) and difficulty with navigating the checkout process (31%).

According to Statista Inc., mobile commerce revenues reached about $57 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 (27%) or financial services (23%) account and over one-third (34%) 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 prioritizing 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 and financial services providers to stem the tide of lost opportunity and put nearly $25 billion back in their pockets."

Further findings from the 2015 Jumio Mobile Consumer Insights Study include:

Retail Remorse
Apparel, the largest mobile commerce sector, is also the most frequently abandoned, with three in five (60%) of those reported abandoning purchases doing so with apparel items (clothing, shoes, accessories). These rates vary by gender and age, with women (68%) more likely to abandon a clothing or apparel transaction than men (51%), especially female millennials (78%).

Surprisingly, consumers abandon both purchases big and small at similar rates. Smaller purchases such as ordering food or purchasing movie tickets are neck and neck with big ticket purchases such as booking travel.

Abandonment rates by industry:

  • Retail/Apparel – 60%
  • Food (groceries or takeout) – 41%
  • Travel – 41%
  • Household items – 39%
  • Event tickets (concert, sporting event) – 39%
  • Entertainment purchases (39%)
  • Electronics – 35%
  • Online gaming (opening an account) – 27%
  • Applying for financial services account (opening an account, money transfer) – 23%

"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." 

Speed Over Security
After purchase uncertainty (45% respondent attribution), issues with speed (36%) and ease of navigation (31%) are top reasons cited by those who have abandoned a mobile transaction. In fact, users are more likely to abandon a purchase due to user experience issues than due to the security of payment (27%) or personal information (26%).

In addition to purchase uncertainty (45%) factors most often cited for shopping cart abandonment include:

Usability

  • More than one-third (36%) reported apps/mobile sites being slow to load
  • 31% reported that apps/mobile sites that are too difficult to navigate
  • 28% responded that it is difficult to type personal information on a small screen
  • 22% reported that the payment process was too complicated

Platform

  • 27% reported concerns around security of payment info
  • 26% reported concerns around security of personal info

Therefore, it's not surprising that nearly one-half (46%) of users report that apps/websites that are easier to navigate or use on mobile devices would make them less likely to abandon a transaction.

All About the Benjamins
Retailers who prioritize mobile checkout stand to reap some big returns. Nearly one-quarter (23%) of those who have reported abandoning a mobile transaction say their cart was valued at $100 or more the last time they abandoned a transaction at the checkout. 

  • 32% reported its value from $50-$99
  • 39% reported its value was $49 or under

Dependence on Desktops
Two thirds (66%) 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.

  • 36% say they made their next attempt from a computer
  • 23% tried on their smartphone
  • 7% tried on their tablet

Younger people are more likely to try completing the transaction later, with 77 percent of those 18-34 attempting a transaction at a later time, compared to older age groups 35-44 (58%), 45-54 (63%), 55-64 (53%), and 65+ (49%).

The 2015 Jumio Mobile Consumer Insights Study was conducted online by Harris Interactive on behalf of Jumio, Inc. from June 18-22, 2015, among 2,019 U.S. online adults ages 18+.

About Jumio
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 utilizes 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.

 

SOURCE Jumio