Online shopping cart abandonment has become a serious problem for many e-commerce and retail businesses. This very real issue will deplete your conversion rate unless you take the right measures. More than three of every four consumers visiting an e-commerce site leave their shopping carts full. Typical reasons consumers leave their online carts include excessively high extra costs, such as shipping fees and taxes, long and or complicated checkout processes, lack of interest in creating a site account, website errors, slow delivery, and/or unattractive return policies, among others.
What is Cart Abandonment?
Cart abandonment occurs when a shopper visits your site, add products to the cart and then leave the site without completing the purchase. It mainly occurs due to poor user experience or complicated checkout process. Cart abandonment is the biggest concern among retailers because it takes a toll on revenue.
A study by ReadyCloud says that the average cart abandonment rate is 5.52% every year. Check out more Shopping Cart Abandonment Statistics.
Why Cart Abandonment is a Serious Problem for Retailers?
Cart abandonment is a huge lost opportunity for retailers considering the amount of effort, resources, and money they put in marketing their products. You spend loads of money on branding, social advertising, SEO, referral marketing, and many more techniques to drive more visitors to your site, yet you do not see much revenue following. When an increasing number of visitors leave your website without making a purchase, it takes a toll on your bottom line.
The cart abandonment rate hampers your sales and costs you tons of money. You again spend more on resources and marketing strategies to get your customers back to your site.
If this issue has become a serious problem for your business, experiment with the following shopping cart abandonment solutions. This will help you combat the problem and increase the average order value (AOV). Proactive, preventative measures are always best.
Shopping Cart Abandonment Solutions
A little more than 20% of consumers who abandon their online shopping carts do so not because they did not want to buy the products but because of a site glitch or crash. Many of these consumers have every intention of returning to the site and trying again. Let these customers know you are aware of the situation by creating and sending a recovery email campaign no more than 24 hours after abandonment. Send a second email two or three days later, and a third email the following week to re-engage customers.
Offering them an incentive, such as a discount code, is a great “apology” for the technical issue, particularly when paired with direct links to abandoned carts.
Unlike in a brick-and-mortar store, your employees may not be there in person to convince a consumer to go ahead with a purchase, but you can provide support in other ways. A live chat service offering quick and thorough answers to all questions and concerns may deter consumers from leaving their carts in the virtual dust. For example, if a customer is shopping for a dependable pair of hiking boots but you do not have the style he or she is looking for, your live chat service could suggest another style with a better reputation and lower price tag.
Yes, acquiring user data is important for future advertising campaigns, but not at the expense of the checkout experience. Asking a customer to create an account and provide extra personal details is one of the quickest ways to make the person say “Buh-bye.” While you can absolutely offer the option of creating an account, a “continue as a guest” choice should always be available. Customers appreciate not having to go through the account set-up process to make a purchase and are more likely to return to your site. Express checkout is easy and fast… and very much appreciated. If you are concerned about losing too much data, you can always ask your customers to fill out a quick email survey after their purchases are verified.
Keeping the carts visible prevents that familiar “out of sight, out of mind” issue. Amazon does this with a cart icon present at the top right of the screen at all times. The cart lists the number of items it features and is easily customized for those who want to purchase certain items at a later date. Maintaining a constant cart presence also reminds consumers about products they have “saved for later” when they return to the site, which again is something Amazon provides.
Yet another way to encourage purchase completions is with exit-intent popups. These small screens serve as last-ditch efforts when the consumer is about to exit the site. Popups are installable on any page, including the shopping cart and checkout pages, and send important messages to customers. Many provide incentives to stay and complete the purchase, such as special codes or offers, while others offer additional information that may sway a consumer to move forward with the checkout process. A great example is a popup reading, “Don’t go! You still have some products in your cart. Get 10% off your purchase when you use the code DONTGO.”
The extra shipping charges during the checkout discourage your customers from completing their purchase. Statista mentions that the shipping charge is one of the major reasons for cart abandonment. You offer a huge discount on products to lure your customers, but the hidden shipping cost irritates them and deters them from completing their shopping.
Maintaining transparency by offering them free shipping at the beginning of their shopping journey prevents you from this issue.
Customers’ reviews have a huge influence on others’ buying decisions. Consumers read reviews to learn about customers’ experiences with the products they want to purchase. They find their opinion reliable and unbiased, which helps them take a decision when buying a product. Consumers hesitate to purchase when there are no reviews on a site. They trust online reviews as much as a personal recommendation.
Social proof increases the credibility of a brand and hence you can ask your customers to give their input through reviews, ratings, testimonials, and their image with the product.
Recovering abandoned cart has become a challenge among retailers. SMS has a high reach as a marketing channel as users prefer to shop more on mobiles. It becomes easy for businesses to remind them through SMS that their cart is waiting for them to complete their purchase. SMS remarketing is effective because it has the immediacy and receives more customer engagement, click rates than email. A study found that 95%of texts are read by users within 3 minutes of being received.
SMS remarketing is the perfect addition to your marketing channels for cart abandonment reminders.
Implement the above shopping cart abandonment solutions and pay close attention to your checkout rates over the next few weeks. You will likely see the improvement you want, which may inspire you to offer further incentives or other outstanding reasons why your target audience should choose you over the competition.
Remember, while you cannot always win every time a customer wants to leave his or her shopping cart, you have many options to control the abandonment numbers as much as possible.