UX Research
E-commerce
Workflows

Revisiting User Auth to Reduce Abandonment Rates

Your checkout experience should be forgettable*

*Forgettable, but in a good way. The process should be so effortless for the user that it becomes an afterthought. This ensures a seamless shopping experience—more like a small speed bump than a full-blown, lane-changing traffic jam.

After years of feature enhancements, security fixes, and third-party payment integrations on our white-label e-commerce platform, the checkout experience my team had inherited was a tangled mess—a giant band-aid ball. It was slow. It was confusing. And it was causing session drop-offs, even after customers had invested significant time and effort building their item-heavy carts.

We had to do something! But where do you start and how do you get stakeholder buy-in to make sweeping changes? You lean on the data and validate against industry standard UX resources (like the Baymard Institute). By taking an approach that has function over form and puts the user first, we were able to reduce checkout abandonment to 21%-31% (varied by retailer).

So What is Checkout Abandonment Rate?

Here's the definition from HotJar:

The percentage of potential customers who start the checkout process but don’t complete it.

Various factors influence this rate, and because our white-label solution allows clients to customize forms, payment methods, and sign-in wall placements, we faced the unique challenge of analyzing dozens of data sources to identify bottlenecks.

First, let's talk about what we found.

Understanding the Data

The initial checkout workflow was designed over nearly 8 years ago and worked off a stepped structure where users were processed from one view to the next after completing each form. So first things first, we opened up Google Analytics. The results weren’t overly surprising but here is what we found and the assumptions that we made.

Significant Drop-offs During Contact Info Step

Being a white-label solution with varying client needs, our product allowed retailers the flexibility of guest orders. But with growing requirements around third-party services, most instances were not able to support this feature as shopper information was required for certain service integrations (e.g. DoorDash and Instacart delivery). In looking at the data, most retailers had opted for required sign-in at:

Add to Cart
First item added to cart
26.27%
Avg. Exit Rate
Proceed to Checkout
Transition to checkout
13.14%
Avg. Exit Rate
Customer Contact
Step 4 of Checkout
21.22%
Avg. Exit Rate

Unsurprisingly, placing a gate check at the first sign of e-commerce intent is a bad idea. Similarly, requiring it during checkout can deter users who may get frustrated at the idea of more steps. However, in some configurations, a signed-in session is necessary. The data suggested that positioning this step between shopping and checkout results in the lowest exit rates—but we needed to back this further.

Next, we rounded up our list of retailers for competitive analysis–which includes retailers from both grocery and non-grocery.

E-commerce competitive analysis table showing which other online retailers use the start of checkout as their auth point

Shopping and checkout are distinct cognitive workflows. Placing user authentication elsewhere forced customers to navigate an unrelated task, disrupting their experience. The transition from shopping to checkout was the ideal point for this shift—right when users were already expecting a change in context.

Maintaining The Peace

The issue was starting to look clearer and at this point the team was working through new workflow diagrams to ensure that enforcing a change would not break any existing UX workflows.

Workflow diagram for when user auth is prompted

Leaning on Industry Research

While we had a strong foundation for why our changes worked and why they should be implemented, we always backed our assumptions with data. The Baymard Institute has a number of research articles that provided points for us to focus on.

Baymard’s quantitative study on reasons for checkout abandonment shows that 24% of US internet shoppers have abandoned one or more shopping carts during the past quarter solely due to forced account creation (4,384 respondents, US adults, 2022)
#637: Always Provide Users With A “Guest Checkout” Option
Once users have progressed to the checkout process, the primary focus should be on completing the sale. Forcing users to stop and consider whether they want the item enough to sign up for yet another account distracts from that primary goal.
#637: Always Provide Users With A “Guest Checkout” Option
Effectively, preventing users from building a cart makes it more difficult for users to determine if registering for an account is worth their while, lowering the chance that they will do so.
#258: Avoid Requiring Users to Enter Personal Details to Browse Basic Site Information
...it’s important to remember that, for users, asking for personal information — typically an email address, but also name, address, or phone number info — is considered invasive if they haven’t decided to purchase from a site.
#258: Avoid Requiring Users to Enter Personal Details to Browse Basic Site Information

Release and Client Buy-in

Changes were implemented one client at a time while we monitored Cart Abandonment metrics. As we saw positive results, it became easier to convince retailers to adopt the recommended user authentication settings. Over three months, we tracked sessions and collected user feedback through surveys. Ultimately, we achieved a ~17% reduction in checkout drop-offs and a 3% decrease in exit rates at the authentication step. With industry checkout abandonment rates exceeding 70%—and anything below 40% considered ‘good’—I’d call that a win!