What is Shopping Cart Abandonment and how to reduce shopping cart abandonment?
Shopping Cart Abandonment refers to the instance of an online shopper leaving the store without completing the purchase – when a potential customer starts adding items to their virtual shopping cart but drops out of the process before completing the purchase. Any item that enters the shopping cart but never makes it through the transaction is considered to be “abandoned” by the shopper. This virtual shopping cart is then referred to as an abandoned carts, and can be aimed to recover with the help of cart recovery feature provided by email marketing companies or marketing automation companies like Betaout..
Shopping Cart Abandonment Rate
The rate of shopping cart abandonment is calculated by dividing the total number of incomplete purchases by the total number of transactions initiated (no. of abandoned carts plus no. of completed purchases). Shopping cart abandonment rate identifies what percentage of an online store’s users initiate a purchase, but never complete it.
According to various studies, average cart abandonment rate across various sectors is about 75% i.e. 3 out of every 4 shoppers leave the store without completing the purchase. Take a look at this graphic below to see how different industries fare when it comes to abandoned carts.
It is an important metric for e-commerce companies to gauge their performance because a high cart abandonment rate could mean a poor shopping experience, broken sales funnel and more. Mitigating shopping cart abandonment and reducing the number of abandoned carts directly improves the bottomline of a company, hence implementing a cart recovery strategy is a core area of focus for online retailers.
Why Do Shoppers Abandoned Carts?
There are a number reasons involved as to why online stores encounter abandoned carts, ranging from high shipping cost to unavailability of multiple payment options. According to Statista, some of the primary reasons for digital buyers leading to abandoned carts in US (2015) are as shown in the graphic below. Here we’ve compiled a list of the most common reasons for shopping cart abandonment along with tips on how to combat them.
Lack of trust among users – People aren’t always comfortable providing their credentials and payment info online. Increasing trust among your customers is a great way to improve conversions.
High shipping costs – One of the primary reasons why people abandoned carts is the high shipping costs imposed by online stores. Reducing shipping costs to a nominal can boost sales considerably.
Difficult user experience – Humans have a short attention span, hence they abandon the checkout flow if it is too complex or time-consuming. One of the ways to avoid this is by making the checkout process as easy and painless as possible.
Conducting research – Many users who add items to the shopping cart but don’t complete the purchase are just conducting research with the low intent of buying. Incentivize these users to purchase immediately by offering limited time promos.
Lack of multiple payment options – Customers often have strong preferences of how they would like to pay, and only complete a purchase if their preferred method is available. Reduce this problem by offering the most popular payment methods for your target audience such as Paytm and UPI.
Price in comparison too high – Shoppers on the web often compare various shops to find the best deals. You can help prevent customers from jumping ship by offering the best price or better service in order to keep competitors from poaching them away.
Technical issues – All technology is susceptible to technical issues and glitches. Be sure to monitor your analytics and do regular reviews of the checkout process to ensure there are no bugs or glitches.
How To Recover Abandoned Carts?
While there are a number of best practices online merchants incorporate to optimize the checkout process and improve their conversion rates, cart abandonment still remains as troublesome a pain-point. The only way to ensure that the loss of sales attributed to shopping cart abandonment is mitigated is by recovering them using powerful and retargeting tactics provided.
Betaout Cart Recovery Tool
Using a comprehensive Cart Recovery solution is arguably the most effective way to retarget abandoning customers and recover lost carts. Various email marketing companies and abandoned carts recovery tools allow e-commerce marketers to set-up a composite re-targeting drip campaign, engaging your cart abandoning customers via multiple channels including Email, SMS and Browser Push Notifications with timely, personalized messaging.
Improve Conversion Through In-depth Customer Analytics
Betaout provides you with extensive customer analytics that you won’t find with any email marketing companies or marketing automation tools. Get the power of information on your side. Use data to launch targeted campaigns that encourage your cart abandoners to come back and complete the purchase.
Gain Insights About Your Store’s Conversion Performance
The best way to improve on your online store’s conversion rate is to know exactly what’s going on. Unlike other email marketing companies and marketing automation tools, Betaout provides this to you through comprehensive site performance metrics. Understand your cart recovery success rate, and analyze which campaigns worked the best, and why.
Run Information & Segment Driven Cart Recovery Campaigns
With Betaout, you can craft cart recovery campaigns that are tailored for your different segments. Don’t default to the “one campaign fits all” mistake. Create hyper-targeted campaigns for your cart abandoning customers and then lead them back to your website to complete the purchase.
Use Customizable Messaging To Enhance Engagement
Create multiple levels of opportunity for re-engagement with Betaout’s extensive selection of responsive email templates. Choose from our extensive collection of responsive email templates. Be assured that they will render perfectly when delivered to your customers.
Recover Your Lost Sales Today
With Betaout, you get a powerful cart recovery tool that is designed for data-driven marketing campaigns and messaging flexibility. Unlike a plethora of email marketing companies out there that provide the same, undifferentiated cart recovery solution, Betaout lets you put its advanced customer segmentation to work. You get a clear idea about your different customer segments – their needs and motivations to buy. The tool is your best partner when you want a shopping cart recovery tool that delivers solid results.