Shopping cart abandonment: 5 reasons why
First, let’s discuss the reasons why customers fail to finish the purchasing process. Most sources give the following top 5 reasons:
- Unexpected shipping costs
- Having to create an account
- Long and confusing checkout process
- Inability to calculate total order costs up-front
- Forgot password
Fix the process
The best thing you can do to prevent losing 74% of potential customers is to clearly and transparently communicate all costs. Showing customers pricing information up front can be challenging. Also, retailers fear it will dissuade them from buying. However, presenting them with unexpected costs right before they are ready to pay can be much worse. Be transparent and increase the trust customers place in your business.
Do not ask too much personal information. Creating extra steps in the sales process can be confusing. The shorter and easier the process, the better. Offer an option to purchase items without having to create an account. Also, offer an easy checkout process with your customers favourite payment methods and the sale is a done deal.
Sales, sales, sales
Besides removing hurdles in the process, retargeting is another important factor in getting all shopping carts paid. There are many ways to retarget abandoned shopping carts. Most companies choose email marketing campaigns to reach out to their target group. The average email campaign open rate for abandoned shopping carts is 45%. To reach your customers, you don’t want to wait too long. Send your message 3 hours after the cart is left unattended and convince the customer to come back.
Free tip: Did you know SMS has an open rate of 98%? Sales done via mobile are increasing every year, so why not send a text. It will increase the chances of your message being read by 43%.
What can you do to create a persuasive message? First of all, it should be easy to get back to the shopping cart. Clearly state the content of the cart and the costs of the items they put in the cart. You can offer a discount if the customer comes back and makes the purchase. Another option is to apply the scarcity effect by pointing out that you can only hold on to these items for a limited amount of time or they might be gone. It also helps to tell customers that you will reserve this items for a limited time, to create a sense of urgency.
You may also try to divide and conquer by trying all these strategies in a consecutive flow. First sending a reminder, asking them to come back. Followed by a notification telling them you cannot hold on to the items a lot longer. Finally sending them a little incentive like a 5% discount or free shipping if they buy it today.
Knowledge is power
My final tip is to test and measure the success of these tips. Eventually knowing just what works for your customers will help you to gain more conversions and improve your processes.