Dutch fintech Fero has introduced Checkout Companion, a personalization e-commerce tool tailored for Shopify-based businesses in the UK.
The startup aims to assist merchants in addressing the significant issue of cart abandonment, with statistics indicating that around 70% of online shoppers leave their carts during the checkout process.
Fero’s co-founder and CCO, Chris Stein, shared insights on how the company collects data and identified gaps in what payment service providers offer in terms of embedded personalization. Fero claims to provide online retailers with access to 430 data points to analyze and respond to the reasons behind cart abandonment.
According to Stein, Fero tracks various details from the moment a customer visits a site, including the number of searches conducted, the affiliate marketing source, and details entered during checkout. The goal is to engage shoppers in a more personalized manner, instead of simply offering a generic discount.
Stein explained, “We aim to identify the specific reasons for abandonment and how to address the underlying behaviors driving it.” He gave examples of concerns that might lead to cart abandonment, such as expensive shipping options or uncertainty regarding sizing. Fero’s approach involves delivering customized messaging that addresses these specific issues, encouraging shoppers to complete their purchases.
Stein also highlighted a gap in the market, noting that many payment service providers focus solely on authorization rates and overlook the pre-checkout behaviors that lead to abandonment.
This launch marks Fero’s first venture into the UK market after securing $3 million in seed funding last year. Having successfully facilitated over 100 million transactions, Fero aims to validate its model with smaller merchants, particularly those with up to 100 employees, where there is strong demand but limited resources to address abandonment issues.
Fero adopts a revenue-sharing model, charging merchants a percentage of any additional revenue generated through the use of their tool.