Ragn-Sells increased its conversion rate by 33 per cent after implementing AfterPay
Conversion rate is a key indicator for online stores, since it defines how many website visitors actually end up buying something. For the recycling company Ragn-Sells, this indicator has increased significantly after they introduced AfterPay in their webshop.
“Conversion went up by around 33 per cent when we launched AfterPay as a payment method in our online store,” says marketing manager Anders Ellefsen.
Ragn-Sells launched a new online store just over four years ago, and in 2017 implemented the AfterPay solution from Arvato as a supplementary payment method. With AfterPay, instead of paying immediately, the customer gets an invoice by email.
“We saw an immediate increase in sales. There was no rise in our website traffic, but more visitors ended up placing an order. This is no coincidence, since it pays to make it easy for customers to complete a purchase,” says Ellefsen.
One out of three choose AfterPay
Today, a third of Ragn-Sells’ online customers choose AfterPay. The company uses a customer portal for business customers and an online store for private customers, but after the introduction of AfterPay, several small companies have also started to use the online store.
“If a small firm or housing cooperative needs to order a clearance skip from us, more of them are now doing so in the online store. For volunteers from a housing cooperative it’s much easier to use an invoice than the person responsible having to make an outlay from his or her own account. This payment flexibility is important,” says Ellefsen.
Conversion went up by around 33 per cent when we launched AfterPay as a payment method in our online storeAnders Ellefsen, Markedsansvarlig, Ragn-Sells
Ragn-Sells also sells rubber granulate for artificial turf, so its customer list includes a number of soccer clubs.
“These are products that can cost a lot of money, so it's not necessarily preferable to pay by credit card.”
Ragn-Sells is in regular dialogue with Arvato concerning results, statistics, action plans and general experience.
“We have good communication with them, and we're really happy. Effective new payment methods have been a right and important step for us.
The latest e-commerce report from Dibs shows that e-commerce has doubled during the last five years, and that 85 per cent of the population do some of their shopping online. This also means that more and more sectors are finding their way to the digital marketplace.
Fredrik Gustafsson, Vice President Nordic & International Partnerships at Arvato, states that we live in a fast-moving world and companies that don't stay abreast of the new trends will see higher drop-out rates from their websites.
“There’s a clear e-commerce trend towards increased focus on the customer. Previously, companies determined how things worked, and imposed this on their customers. Today, the requirements are very different. If customers don’t find what they need, quickly and clearly, they go looking for other alternatives. It's all about simple solutions, speed and flexibility,” he says.
“With this invoice solution, we’re separating purchase from payment. You can book a clearance skip from Ragn-Sells out on the street using your mobile phone, and pay for it when it suits you, back at home. This is simple and straightforward for everyone involved,” says Gustafsson.