The reason behind great boleto conversion rates is not always straight forward. I have seen cases of online stores within the exact same industry, offering very similar products and prices with extremely divergent boleto conversion rates.
Recently I analyzed the case of two EBANX merchants operating within the perfume & cosmetics industry, one selling to Brazil from Europe while the other ships from Asia well-known western brands like Dior and Lancôme. Our European merchant boleto conversion rates averaged 60% in 2016, while our Asian merchant’s boleto conversion averaged 40% in the same period.
What is obvious from this case is that your customer’s trust in your online store has a significant effect on your boleto conversion rates. Brazilians hold European stores in high regard, they feel comfortable purchasing from European stores, it’s even a kind of luxury.
However, there are less obvious aspects about boleto conversion rates that I want to share with you.
This week I also concluded a 10-month long experiment where I A/B tested the boleto conversion rates of two different integration methods Direct API integration and form integration, that is the integration where your customer is redirected to an EBANX hosted environment to conclude the payment.
I analyzed 172 thousand boleto transactions of a single online retail merchant, processing half of its boleto transactions through each of those two methods of integration:
Here's a graph that summarizes my findings:
For a period of 10 months we A / B tested 172 K transactions of an EBANX merchant with a monthly average volume of USD 3 million, 30% of which with boleto.
- The average conversion rate for boletos processed through Direct API on the same period was 59.5% while the conversion rate for boletos processed through form integration was a scant 24.55%, an average difference of 35% for the entire period.
- There is a strong inverse correlation between boleto's of high values and conversion rates.
- Redirecting your customer from your website to a third-party hosted environment can cause you a 20% drop-off rate as shown below.