How
many
abandoned
carts
are
actually
recoverable?
As per a report published by ReadyCloud, approximately $2 trillion worth of merchandise is abandoned in online shopping carts every year. Not just this, the figure is expected to reach $4 trillion per year by 2020. However, the good news is that it's not a complete loss. In fact, it's an opportunity and about 63% of this figure is potentially recoverable by savvy online retailers. According to experts and Analytic toolmakers, “If your shopping cart abandonment rate is X%, you are not actually losing X% of your sales”. We have posted an article “Abandoned carts- the biggest lie you believed to be true”. If you read it, you will find how we treat the abandoned carts without actually knowing if they are recoverable. By going deeper you can see actually only the 30%-40% of the abandoning customers come to your site with a buying intention. The cart abandonment is definitely a bane for the eCommerce industry. At the same time, the bonus here for you is the fact that cart abandonment is not a bad thing. It is actually a green flag of willingness to engage. You need to focus on that recoverable part, but before that you need to identify that part. Before you delve into the ways to find out your opportunity, it is important to get a hands on the reasons for cart abandonment. Here's is a survey report shared by Readycloud that deduces the cause that
make shoppers reluctant in closing the deal. The statistics show the major reason of the online shoppers worldwide that compels them to abandon their carts.
Img Source: https://www.readycloud.com/ Listed below are some of the conclusions that can be drawn from the data.
Analysis 1 Most of the customers who abandoned the cart did so with an intention to buy. Sounds crazy? But it's true. While approximately 37% of the visitors were window shopping, there is a marginal shopper who had all intention to buy the product. While the casual abandoners is a concern, the rest of the visitors are your potential customers.
Analysis 2 If you take a closer look at the report, you will find that approximately 70-75% of the customers can be motivated to make the purchase. These customers browse your site, fill up the cart and then sets off to
compare the prices with your competitors. According to Internet Retailer, 66 percent of cart conversion comes through email. Email marketing is one way to convert these prospects. The quicker you send these people an email, preferably offering free shipping, discounts, and coupon codes, the more you’ll convert! Magento Abandoned Cart Extension is one such module that allows the admin to send auto-generated follow-up emails and reminders to the customers that too with the discount coupon code. This is one of the ways to lure them for completing their checkout.
Analysis 3 Other than the shipping cost and product pricing, the complicated website navigation and checkout pages are the next big reasons for cart abandonment. A seamless navigation and user experience can help you retain these customers. The customers should not be locked in the checkout page. The transaction should allow the customers to make necessary changes when they make any mistake. Use add-ons like the Prestashop AJAX Cart that provide the functionality to view the cart products, view estimated cost, remove products, update cart quantity, apply coupon etc. Makes the shopping experience easy and effortless for the users even before they go to shopping cart page.
Analysis 4 The inconvenience in making the payment, multiple security checkups and other checkout issues are some of the major issues that can cut short your conversion rates. As per a report by Baymard Institute, an eCommerce site can gain a 35.26% increase in conversion rate through better checkouts. Offer various payment options by Visa, Mastercard, American Express, Paypal and other. Moreover, if you’re using multi-page checkout, then, make sure to include a progress bar that shows the customer how many pages there are and what page they are on in the process. Otherwise, you can go for the One-page checkout module.
Analysis 5
Nothing can bug the customer more than the payment security concerns unless you are a very well-known brand. As per the statistical study, around 17% of the customers don't purchase as they are concerned about the payment security. Add testimonials and reviews from other customers to your site. You can even add security badge on the site. According to Shopify, these badges increased their sales by 4-6%. However, it may even have a negative impact on your conversions, so, it's important to test the placement of these security signs.
Analysis 6 Approximately 10 to 15% of the customers abandoned the cart as the prices were presented in a different currency. This is an easy conversion. Add the Auto Switch Language and Currency module, to your check out page. These modules can automatically set the Language and Currency according to the customer's location. Converting the default currency into the user's desired currency can make the shopping experience flawless.
Analysis 7 Even though it is mentioned in the end, the unexpected costs are the leading reason why carts are abandoned. Hiding the costs, taxes and shipping charges is the fastest way to get the shoppers on the bad side. So stay upfront and clear about the cost breakdown. According to Deloitte, 20% of consumers believe “free shipping� is the top reason to shop with a particular retailer. So, consider offering free shipping on orders over a particular limit.
Final say The attitude of "tagging around abandoners are nothing, but a waste of time", is one of the biggest mistakes of the online merchants. With this belief, you are actually discarding the highest marketing opportunity. You can either make use of this opportunity or consider the biggest lie of cart abandonment as the truth.