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
This story is from the Winter 2024 edition of MIT Sloan Management Review.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the Winter 2024 edition of MIT Sloan Management Review.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
The Trouble With Your Innovation Contests
Not all innovation contests should be winner-takes-all or judged by senior executives. New research shows how to structure contests to meet specific goals.
Scaling Automation: Two Proven Paths to Success
Lessons from two leading hospital systems show how to overcome the obstacles to automation.
How Tech Fails Late-Career Workers
Managers must make deliberate choices to support older workers' use of complex technologies.
Building Culture From the Middle Out
Midlevel leaders are critical to fostering an organizational culture that’s healthy and vibrant.
Why Manufacturers Need a Phased Approach to Digital Transformation
Those that succeed with this difficult work break it into three stages, each with its own guiding metrics.
Will Large Language Models Really Change How Work Is Done?
Even as organizations adopt increasingly powerful LLMs, they will find it difficult to shed their reliance on humans.
How to Make Better Friends at Work
Friendships in the workplace can enrich our lives and make us better leaders and workers if we make the effort to cultivate truly healthy relationships.
Health Care Platforms Need a Strategy Overhaul
To succeed, digital health platforms must shift their approach in three key areas.
Steer Clear of Corporate Venture Capital Pitfalls
Big companies and risk capital can be awkward partners. Here’s how to get corporate venturing right.
New Markets, New Opportunities: Identifying Where and How to Make Your Play
How do leaders determine whether to build a new business around a promising new technology?