What if there was a simple change you could make in your life that would result in a few extra million dollars laying around?
As a person who is very interested in the way business works – everything from marketing to consumer decisions – I found this story to be extremely intriguing. Albeit from a little while ago, I’m interested as to this idea. A company (not named) figured out a way to make $300 million extra dollars in one year.
Now that’s crazy. There isn’t a whole lot that could drive consumer decision that greatly to make that much of an impact. As you may have gathered in the title, this wasn’t necessarily something the company did (marketing, etc.) but more something they fixed – their checkout page. If you’re familiar with online shopping, you might know what I’m talking about when I say online shopping can be frustrating. While there are quite a few company’s that have streamlined their online ordering process. For example, Indigo (disclaimer: I work for the company), has made their process of ordering online extremely simple. However, many companies are brutal when it comes to their online shopping experience (even ones that establish themselves as the top ecommerce websites). Anyways, back to the story. This unnamed company hired a consultant to figure out how to get more business on their website. The solution? Stop asking people to register. No joke: when customers got to the checkout page, they were forced to make an account or login in to a previous one. This created quite a few hassles: some customers can be reluctant to hand over information for another account, and others forget if they even have an account (and then have to scramble to find their info or reset it). What there wasn’t however, was a guest checkout – a way to checkout without an account. That guest checkout was costing this company $300,000,000 (yes that number is correct)!
However, sadly the company didn’t implement the guest checkout and a few years later, went out of business.
KIDDING! There’s no way they’d do that! The company later implemented the guest checkout (and allowed for people to create an account, too), and in the first month reported an extra $15 Million dollars in revenue from their site. That’s kind of crazy, and it was a simple fix.
If you’d like to read more on this case, check out this link.