Learn how to reduce cart abandonment
Updated: Aug 27, 2018
E-commerce players spend a lot of resources in attracting prospective shoppers to their website, the goal is to get the prospective shopper to convert, but most of the time these prospective shoppers tend to abandon carts.
Cart abandonment is a prevalent issue faced by majority of E-commerce businesses. It is a problem that requires resolution. When a prospect abandons cart, it is in a sense a lost opportunity for retailers and this usually tends to affect their bottom line.
A recent report by Salecycle states that the average cart abandonment rate for an E-commerce business is at 75.6%, with such a high rate of abandonment being prevalent, the question that needs to be asked is, what are E-commerce businesses doing wrong and how can digital marketing help improve the outcome?
In this article we will break down certain negative practices that might push a customer to abandon cart and we will also provide certain digital tactics that will work in bringing back lost opportunities.
Firstly, let’s look at the negative experiences that cause cart abandonment:
Expensive Shipping Cost:
High shipping cost is the most common reason why customers tend to abandon cart. 61% of customers leave the website if shipping cost is too high. The solution here is to reduce shipping pricing either to free delivery or to 20% of product value. Also ensure the shipping pricing is clearly stated at the time of purchase.
Most customers look for value when they purchase. Most of the time that value is based on pricing. Customers compare product pricing by visiting other E-commerce websites and hence tend to bounce from your platform leaving the cart abandoned. The solution here is to provide an easy comparison table that portrays pricing across platforms and highlight key benefits that they will get by purchasing the product on your platform.
Providing a great customer experience on your platform is key to converting prospect shoppers. If there are multiple steps from cart to checkout, a customer usually tends to drop out. The solution is to reduce the steps and to always re-enforce product benefit throughout. Re-enforcing benefits helps the customers stick with their purchase decision. Always make the checkout process fast and convenient.
Customers purchase their product through various means, denying a customer a payment option will force the customer to abandon cart. Always have the most popular payment options and ensure the customer can transact easily.
As an E-commerce business, your value is derived from a sale of a product and not from a sign up. Forcing the customer to sign up at checkout will usually cause the prospect shoppers to rethink their purchase decision. The solution is to allow guest shopping. Prospect shoppers will eventually sign up if they use your platform frequently. Let the customer make the move towards a sign up.
Now that we understand the problems that cause cart abandonment and their solutions, lets look at what can be done if the prospect shopper has already abandoned cart. In this stage Digital Marketing is key to getting those prospects to complete transaction.
Re-enforcing benefit and urgency:
Email is the most common method utilized to bring back prospects that have abandoned cart. If you posses your prospects email, its best to send in an message within three days from the day of cart abandonment, This will re-enforce product benefit and urgency. Remind the prospect of his/her need and make them aware of offers, timeline and benefits. The motive here is to move the prospect to conversion.
Track and remarket:
If there are scenarios where you don’t posses prospect details, then utilize cookies and analytical tools like Pixel to re-market to customers who have bounced. Ensure you have the necessary permission from the customer to collect information via cookies and include privacy policies to inform customers that their information is safe and can be deleted upon request. Re-market the most popular category where carts are abandoned, this ensures a higher likelihood for conversion.
Campaigns and discounts
Prospect shoppers can be motivated to revisit abandoned carts by utilizing innovative campaigns such as revisit your cart and avail discounts or providing discounts on existing products that are high on demand. The aim here is not to convert the abandoned cart but to ensure the prospect completes at least one purchase (Abandoned or fresh). This helps in acquiring customer detail, which makes it easier for your business to be in touch.
Implementing these steps guarantees a reduction in abandonment rate and maximize your E-commerce revenue.
To know more on how to maximize your digital marketing efforts in 2018 click here.
Comment below and let us know which strategy you may implement and if you know of any innovative method of reducing cart abandonment.