How We Boosted Our Revenue by 18% Using PayPal
I’ve been using PayPal for years. It’s been so long I can’t even remember when I first started using it. But I would’ve never guessed that using it would increase my revenue. Sounds crazy, right? Today I’m going to break down how we boosted our revenue by 18% using PayPal.
Well, before I dive into how, I wanted to first let you know that this video is sponsored by no other than PayPal. But what’s funny is I would’ve created it either way so you can copy my results.
So how did I get the 18%?
RESOURCES & LINKS:
PayPal Honey: https://www.paypal.com/au/webapps/mpp/honey
First off, we have a software company called Ubersuggest. Although we have paying customers from all over the world, a large chunk comes from the United States, roughly 26%, and then it’s followed closely by countries like the United Kingdom, France, Germany, and Japan. So I never thought about taking PayPal as a payment option because all of our paying customers have credit cards that we accept, and what’s even funnier is we only got the request to accept PayPal a few times a month. For that reason, we didn’t think it was important.
But when my co-founder, Mike Kamo, told me about his girlfriend’s e-commerce site, although they were only focused on the United States, roughly 40% of their customers paid via PayPal. So we decided to run an experiment. We added PayPal as a payment option on our checkout. Within 30 days, we saw a drastic difference. Our new revenue numbers grew by roughly 16%. A bit more than 35% of our customers chose PayPal as a payment option. Fast forward a few years later, that number is up to 18%.
Just think about that. By adding one simple additional payment option, we grew our revenue by 18%. Plus, PayPal’s global network makes it easy for a customer to pay you in one currency, and then PayPal can pay you out in a different currency, which customers love. Now, although our revenue has grown by 18% from new customers, what’s crazy is over 35% of our customers prefer paying via PayPal.
If we didn’t have PayPal, some of them would’ve paid by credit card, but the users that chose PayPal typically have their banking accounts connected to the service and their credit cards, which has helped us reduce our churn.
In other words, it helps with customer longevity. If you want a quick win with your business, add it to your checkout page. It’s really that simple. At our ad agency, NP Digital, we’ve recommended this to our clients in all verticals. We see lifts in literally all verticals, especially retail, travel, insurance, and even utilities.
When we surveyed people on why they chose PayPal because I want to understand why it boosted our conversions by that much, they said it was because the checkout process was way faster and easier for them. With the growth of omnichannel marketing, people come to your website from various channels and devices. So why not make their life easier by giving them checkout options that require less effort?
Now, a few things that can help you potentially get even better results than the 18% I mentioned above are that the digital experience starts way before the checkout. Don’t wait until the last minute to make things easier on people. Each touchpoint is super important, from reducing clicks to making sure your website loads fast.
Second, discounts and promotions are a great way to boost your returning customers. According to Adobe Analytics, 8.9 billion was spent on Black Friday last year, and that was just online. But you don’t have to wait for Black Friday to generate extra revenue. You can always run promotions to your own website visitors or even email list, or better yet, why not run a promotion to a whole new audience?
Through Honey, you can offer promotions to their user base, and their user base is massive. Over 10 million people have their Chrome extension installed. Honey is a good way to operate discounts without cheapening the brand, the typical way price cuts do. And with the macroeconomic situation and inflation, consumers are looking to stretch the dollar, and that’s exactly where PayPal’s Honey helps.
Just think about it. It’s a delightful experience when consumers can save money on gifts or purchases. So what are you waiting for? Give PayPal a try. At the very least, it can help you generate more sales.
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