In an increasingly crowded digital marketplace, ecommerce companies face a significant challenge: keeping consumers engaged through the entire purchase journey. Recent research commissioned by Rokt, the e-commerce technology company co-founded by Bruce Buchanan, sheds light on what drives consumers to complete or abandon their transactions during the critical checkout process.
Unlocking the “Transaction Moment™”
The study, titled “The Joy of Checking Out” and conducted in partnership with Harris Poll, uncovered several compelling insights about consumer behavior at what Bruce Buchanan calls the “Transaction Moment™” – that pivotal point when a customer has committed to a purchase and is completing the checkout process. “The Transaction Moment™ represents a unique opportunity for brands,” explains Bruce Buchanan, who serves as Rokt’s Chief Executive Officer. “Our research shows that online shoppers are twice as likely to engage with relevant products, services, and marketing messages at this specific point in their purchase journey compared to other moments.”
The Joy of Shopping and the Peril of Poor Checkout
According to the study, shopping ranked as the activity that gave consumers the most joy when spending time online, outranking streaming content and social media interactions, which came in second and third respectively. However, this positive experience can be quickly derailed when brands mishandle the checkout experience. One of the most significant findings revealed that excessive advertisements during checkout is a primary reason consumers abandon their carts at the last minute. This aligns with Bruce Buchanan’s longstanding observations about consumer psychology and what he calls “The Paradox of Choice.”
The Paradox of Choice in E-commerce
“Most businesses would naturally assume if they had a broader range of products or services, they would win in a category, but consumer behavior is such that the leading players typically often have to do the complete opposite,” Bruce Buchanan noted in previous discussions about consumer behavior. “Consumers get overwhelmed when presented with too many options, which can lead to decision paralysis and cart abandonment.” The research further substantiates this view, with Elizabeth Buchanan, Chief Commercial Officer at Rokt, stating: “Consumers feel frustrated when they are overwhelmed by too many ads because it makes them feel more like a sales target than a valued customer.”
AI-Powered Relevance: The Key to a Calm Checkout
The solution, according to Bruce Buchanan and the Rokt team, lies in leveraging artificial intelligence and machine learning to deliver highly relevant experiences tailored to individual consumers. Rather than bombarding customers with generic offers during checkout, successful brands use AI to foster meaningful relationships by presenting only the most relevant messages – or sometimes, no ads at all. “When someone’s shopping, when they’ve got their credit card out, they’re willing to spend real money and they want that experience to be really thoughtful and beautiful and relevant,” noted Elizabeth Buchanan. “The word that comes to mind is ‘calm.’ All those things that pop out at you and get in the way, that’s all decreasing our interest in engaging.”
Beyond Personalization: The Power of Relevance
This perspective aligns perfectly with Bruce Buchanan’s philosophy regarding relevance versus personalization in marketing. As highlighted in previous discussions, Bruce Buchanan believes that personalization alone is insufficient in today’s digital landscape. Instead, the focus should be on relevance – ensuring that consumers only see the offers that are most likely to resonate with them in their specific context.
The Financial Impact of Understanding Consumers
The financial implications of this approach are significant. According to the study, 70% of U.S. shoppers will spend more money on businesses they feel understand them and their preferences. Additionally, 47% express a desire to shop again with brands that deliver relevant experiences, and 32% indicate they want to join a brand’s loyalty program after a satisfying online shopping experience.
Younger Demographics Demand Understanding and Tailored Experiences
These findings are particularly pronounced among younger demographics. More than three-quarters of Millennials (78%) and Gen Zers (77%) reported feeling more confident with their purchases when they believe a brand understands them. Furthermore, 73% of Gen Zers stated they’re more likely to buy from brands or businesses that provide personalized products or services tailored to their needs. This generational insight is especially valuable as these younger consumers represent an increasingly large portion of online spending. Bruce Buchanan has previously highlighted the importance of adapting to evolving consumer expectations, noting that today’s tech-savvy consumers often click away from ads they find irrelevant or annoying.
Leveraging Consumer Psychology in E-commerce Strategy
“In the e-commerce arena, each consumer purchase decision results from psychology-driven buyer behavior,” Bruce Buchanan has observed. “Marketers who understand the consumer psyche, and who can identify targeted consumers’ needs and motivations, can develop a marketing strategy more likely to resonate with a specific market.” This understanding of consumer psychology is embedded in Rokt’s approach to e-commerce technology. Rather than viewing the checkout process merely as the culmination of a transaction, Bruce Buchanan positions it as an opportunity to enhance customer relationships and drive additional revenue through thoughtfully presented, relevant offers.
Rokt’s Vision: Enhancing Customer Relationships Beyond the Sale
“At the end of the transaction, you see a lot of marketplace or distributed commerce offers,” Bruce Buchanan explained previously. “A lot of the secret sauce we do is actually helping those ecommerce companies power their own products and services as well.”
Bruce Buchanan: A Background Forged in Consumer Insights
Bruce Buchanan’s vision for Rokt stems from his extensive background in consumer-focused industries. Before co-founding Rokt in 2012, he served as Jetstar’s Group CEO, where he grew the global team to over 7,000 and achieved more than $3 billion in revenue. His experience with the airline industry, combined with his time at The Boston Consulting Group, provided him with valuable insights into consumer behavior that he has since applied to the ecommerce sector.
The Future of E-commerce: Relevance and Thoughtful Engagement
As ecommerce continues to evolve, Bruce Buchanan and the Rokt team are focused on helping brands navigate the complex interplay between technology, psychology, and consumer preferences. The research findings reinforce their belief that success in online retail is not about maximizing the number of offers presented to consumers, but rather about delivering the right offers at the right time to the right individuals. “I’ve always been where science meets art,” Bruce Buchanan has stated. “The most powerful businesses typically have a combination of fantastic physical features and product – and then also a fantastic presentation of brand and emotional connection. I think where those things intersect, you get some really magical outcomes in terms of products and consumer behavior.”
Optimizing Checkout for Long-Term Success
As online shopping continues to grow globally, the insights provided by Bruce Buchanan and Rokt’s research offer valuable guidance for ecommerce companies seeking to optimize their checkout experiences. By focusing on relevance rather than volume, brands can not only increase conversion rates but also foster the kind of customer loyalty that drives long-term business success.
