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Archive for July, 2012

Dealing with Shopping Cart Abandonment

In talking with my clients, there is a topic that kept coming up in regards to Ecommerce, and the topic was Shopping Cart Abandonment. The questions were: What is it? Do I have this problem? What should I do about it?

Lets start by briefly outlining “What is Shopping Cart Abandonment?” Shopping Cart Abandonment is when a customer comes to your site, browses for a period of time, and adds items to their cart. Then, for one reason or another, they end up leaving without checking out and without purchasing any items in their cart.

How prevalent is this problem, and is it something I should be concerned about? Turns out, over 65% of shopping carts are abandoned. That’s a lot of lost revenue!

If you have an Ecommerce site then you have Shopping Cart Abandonment.

So what do you do about it? That depends on why the customer is leaving. There are a number of reasons that can interrupt the checkout process from customer indecision to site design flaws and technical problems. 

The number 1 reason shoppers abandon their carts is because shipping and handling costs are too high. Lowering this alone can have a major impact on your sales. Other major reasons for abandonment are customers who are not yet ready to purchase, customers who are still price shopping on other sites, and customers who think that your individualized pricing is too high.

Design and trust level are two more reasons why customers will abandon their carts. Design needs to be inviting and the amount of work a customer should do to checkout must be minimal. If your site is outdated, running slowly, and confusing for a buyer, the customer will be less likely to purchase anything and thus, abandon their cart. This is the “trust level” or, the level of confidence the buyer obtains from your site while browsing.

There are two ways to go about reducing your abandonment: You can try to stop it before it happens, or you can try to encourage a customer to come back and complete the checkout process if it has already happened.

Some popular options for preventing abandonment are:

  • Offer Free or Reduced Shipping
  • Don’t force registration to checkout. Allow Guest Checkout.
  • Simplify your checkout process. Unnecessary steps allow for more options to leave.
  • Ensure your checkout process is Safe and Secure and uses SSL
  • Requiring unnecessary information. People typically don’t like filling out forms. Do you?

Even after the above actions have been taken you can still recoup some of the abandoned carts.

Remarketing is a clever technique that allows you to display advertisements on other websites to users who have previously visited your site. If used correctly, you can remarket shopping cart items that have been abandoned. Google AdWords is a good example of a way to implement this technique and of remarketing has been shown to increase conversions by 18%.

Another very powerful tool is sending an email to customers letting them know they have a cart and promoting the products that they have abandoned. Surveys have shown that 13% of leading Ecommerce sites target their customers within 3 hours of an abandoned cart. An automated waterfall campaign of three emails sent over an increasing delay such as 3 hours, 24 hours and 7 days has been shown to work well.

An analysis of one of my customers revealed thousands of dollars in potential revenue from their customer’s abandoned carts! What was even more impressive was that their Magento Ecommerce platform tracked the email address of all of those abandoned carts. Having good analytics and a strong Ecommerce platform can provide you with many useful bits of information if setup properly.

According to SeeWhy, which has analyzed data from over 600,000 abandoned carts, 54% of all carts that are successfully recovered are won back within the first few hours after abandonment. An additional 10% can be recovered within 48 hours, and at the end of 7 days, 82% can be recovered.

One final thought, Don’t reward abandonment! If you decide to send coupons in an abandoned cart email, mix it up and only send them on occasion. Sending out coupons after someone abandons their cart every time is training your customers to wait and come back later to receive a discount.

If you run an Ecommerce site, now is the time to look into your Shopping Cart Abandonment. If you need help with analysis of your site or implementation of any of the suggestions above, contact Sysgen Media’s Ecommerce Consultants and let us help you recover your lost carts!