Have you encountered a purchase that was so close to pushing through? The customer was almost done but they dropped it at the last minute.
This is an example of an abandoned shopping cart and this is prevalent in numerous shopping sites. In fact, as of 2017, the shopping cart abandonment rate worldwide is at a total of 75.6%. More and more people shop but they don’t complete the transaction at the very last minute.
How to address this situation? Here are some details to help you understand shopping cart abandonment and how you can turn them around into an opportunity for profit instead of treating it as a problem:
1. What Is Shopping Cart Abandonment?
Shopping cart abandonment occurs when a potential customer is going through the checkout process but ends up dropping out instead of completing it.
When this occurs, the vendor would deem the item as abandoned. This is one of the factors that store owners monitor as a part of their metrics.
The shopping cart abandonment rate gets measured through this calculation: the total number of completed transactions divided by the total number of initiated transactions. This way, they can get a specific percentage of items placed in the cart but not making it towards the checkout.
What makes the vendors pay attention to abandoned cart statistics is that it tells them a lot of things about their site. There might be some problems that prevent customers from completing the purchase, which needs addressing in one form or another.
Among these problems would be either poor customer experience with the site’s processing system, a broken sales funnel, or other factors that would push the customer away instead of pulling them further in to purchase the product.
By reducing shopping cart abandonment, you can expect to see an increase in revenue due to completed purchases and satisfied customers. The goal is always to reduce abandoned carts and to bring back customers to complete their transactions.
2. Why Do People Abandon Their Carts?
What leads to shopping cart abandonment? As a matter of fact, there are a variety of factors and reasons that lead shoppers to turn tail and leave their carts.
Among these factors, 60% of consumers cite high extra costs as a reason behind the cart abandonment. Seeing unexpected costs like shipping being too high for a customer would turn them off.
Other factors that contribute to the rate of abandoned carts include a complicated check-out process (28%), and the lack of a guest checkout option (37%). Clunky site features and layouts are also factors that lead to cart abandonment. For example, the inability to edit the cart contents. Or the total price of the purchase not reflecting outright.
While the website layout and processing are among the concerns that can cause consumers to drop the purchase midway, some of the factors behind abandoned carts would fall into unsatisfactory return policies, shipping timeframes, or the lack of trust with providing card information.
Another factor that may come to play is that customers compare the prices of the items from one shop to the other. If your business doesn’t price match, there’s a chance the customer will abandon the cart and opt to buy the same item elsewhere as a means to save money. This is why many of the big retailers, like Amazon, now offer price-matching to guarantee they have the lowest prices in the market.
3. What Can You Do To Bring Them Back?
In the event that cart abandonment occurs, do not fret. There are means to get those customers to reconsider and bring that cart forward towards a complete transaction.
One of these methods is to send emails directly to the customer’s inbox to remind them about their transaction. There’s always a chance your customer simply forgot about it. If they were shopping elsewhere, a quick email could be enough to pull them back and away from the competition.
Here are some numbers to back that up. Marketing messages are best sent over email, as 77% of customers prefer receiving them directly into their inbox. 47% of these customers are expecting to hear from the vendor about their cart. While 32% will take action after receiving the email notification.
What abandoners need is a good follow-up to give them the nudge towards the right direction and they will follow through with their purchase. In sending follow-up messages, keep note of the following pointers:
First, stress the value of your offer.
This will attract and appeal towards customers who mind the price. Second, some urgency would do them good (this can be through a limited-time offer or the item’s limited stock). Third, the message must be comprehensible in every platform, especially on mobile.
On one final note, be prompt. Send the email within an hour of abandonment.
Some customers respond more to emails that contain discount vouchers and limited promos. You should consider adding these in if customers ignore conventional notification emails.
4. Are There Tools To Prevent Cart Abandonment?
One thing to remember about shopping cart abandonment is that these are not lost causes. Rather, these are opportunities that you can make use of, allowing you to turn them around and still be able to make a profit from them.
There are tools that allow you to send emails to notify your customers about their purchase, like Rejoiner, Cart Guru and CartStack. These platforms can help you get in touch with customers to remind them of their potential purchase. There are also tools like AdRoll; used for retargeting strategies.
There is also a dedicated service designed to assist you in recovering abandoned shopping carts. They offer a recovery rate of up to 25% of abandoned carts and full management of cart recovery services.
Whichever you choose for your site, there are means to prevent and mitigate cart abandonment at your disposal.
Address Shopping Cart Abandonment Today!
While shopping cart abandonment gets viewed as a problem by many, you can view them as an opportunity. By finding a means to consolidate your customers, you can ensure that at least some of those abandoned shopping carts will finally push through as complete transactions.
To help you with these, we have a specialized cart recovery service that you can utilize along with other online solutions. Contact us today and we’ll get you started.