Dutch fintech Fero has launched its personalization e-commerce tool Checkout Companion for Shopify-based businesses in the UK.
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The startup claims to help traders catch some of them 70% of online shoppers who abandon their shopping cart during the checkout process.
Chris Stein, co-founder and CCO of Fero, spoke to Finextra about how they collect their data and which payment service providers are missing from integrated personalization.
The fintech claims it can provide online stores with 430 data points to understand and respond to why shoppers abandon their purchases.
Stein said they are able to track all the details once a customer lands on a website. This includes data such as the number of searches, the affiliate marketing program they came from, and the number of details they entered during checkout. The goal is to offer these shoppers something that might lead them back to purchase, rather than a flat 10% discount for shoppers who leave the site.
He said: “We try to get to the heart of what would be a reason for someone to quit, and if there is a high risk of quitting, what behavior is causing that and how can we address it.”
Stein explained how the data is used: “Maybe someone was concerned about the shipping methods being too expensive, or someone was concerned about the size because you see they have three of the same items in this cart and they seem to want to check out. “, but you are unsure about the size or return policy. This is where you can send tailored messages or tailored messages to those individual visitors, easing the pain and bringing them back.”
Regarding the gap in the market that they are closing, Stein said: “In the payments space you often see that most payment service providers, the Stripes and the IBMs of this world, only pay attention to the authorization rate and once.” Someone is already clicking past, they don’t care, what happened before.”
This is Fero’s first launch in the UK, having raised $3 million in seed funding last year. Having been involved in over 100 million transactions, they claim to have proven their models with larger merchants and are now proving this with smaller merchants too.
Stein commented: “What we’re doing at the moment is actually specifically aimed at smaller retailers with up to 100 employees, so we’re seeing a lot of traction there.” We’re also seeing that people understand the problem but haven’t had the resources or time to really deal with it.”
The startup uses a revenue share model where merchants are only charged a percentage of the additional revenue they generate from their tool.