The Woot experience
Woot.com drives new customer acquisition with Amazon Pay
Woot.com has been serving up daily deals with a side of irreverent humor since 2004. The combination of clever wordplay and big savings - on everything from umbrellas to bed sheets - has helped the company build a passionate online community. To buy on Woot, customers first create an account, which not only enables them to purchase but also to engage in the site’s forums.
“Our brand is tied to our community. Our customers are extremely active in our forums, and we pull customer stats onto every product page,” says Joy Chang, Senior Product Manager at Woot. “Because we believe community engagement drives more sales, new account sign-ups is a key metric for us.”
To make signing in and signing up easier, Woot launched Amazon Pay, a service from Amazon Pay that lets Amazon customers easily create a profile and then buy with the information already stored in their Amazon account.
Nearly two-thirds of new users now choose to register with Amazon Pay.
An immediate sense of trust
Woot sees the rapid adoption of Amazon Pay as evidence of its value. “Amazon Pay became very popular on our site very quickly and now accounts for almost a quarter of our overall revenue,” says Chang.
When asked what she thinks has driven customer adoption, Chang points to a third-party usability study Woot commissioned before launching Amazon Pay. After walking through the login and payment experience, participants were asked for their feedback.
“What we heard universally from customers is that when they see Amazon, there’s an immediate sense of trust,” Chang says. “That gave us a lot of confidence about adding Amazon Pay to our site.”
Now that Amazon Pay is live on Woot, customers can place their orders easily in a seamless experience that takes place completely on Woot.com. “Any extra steps you add to the checkout process, you tend to lose people along the way,” Chang says. “With the Amazon Pay experience, it’s literally three clicks.”
Adding Amazon Pay to our site has absolutely been worth the development work. Our customers love it, and we love the results we've seen.
Due to its early success, Woot is already planning ways to leverage Amazon Pay in the future, including A/B testing of the Amazon button’s placement and inclusion in a new mobile shopping app. Chang says, “Adding Amazon Pay to our site has absolutely been worth the development work. Our customers love it, and we love the results we’ve seen.”
New customers who spend more
Since going live, Amazon Pay has quickly become a major driver of new account registrations. “Nearly two-thirds of new users now choose to register with Amazon Pay,” Chang says. “That demonstrates the ease of use for customers and the business value for Woot.”
Those new customers have proven to be a valuable source of incremental revenue, spending more on average than customers who don’t login with Amazon. “Customers who use Amazon Pay buy higher priced items and spend over 5% more per order than customers who choose other payment options,” Chang says.