The Challenge: According to recent research done by Fireclick/DigitalRiver, online retailers are experiencing shopping cart abandonment at a rate of about 74%. What can you do to prevent this from happening to you?
1. User Experience
The biggest problem customers had here was retailers asking for too much personal information upfront. People want to shop without unnecessary complications on the purchase path. These complications include required registration, too many pages, and poor site functionality.
2. Indecision
Abandoners who are on the fence about purchasing are usually the most responsive to post-abandonment messaging. However, understanding the behaviors that surround purchase indecision is required to shape post-abandonment marketing strategies.
3. Technical Issues
Technical issues that turned shoppers off included lack of online security, difficulty in redeeming promotional codes, lack of customer support, and constant redirection away from the cart, all of which ultimately lead to dissatisfaction. In order to keep customer interest, good customer service must be maintained along the entire purchase path. Zappos.com is a great example of this, constantly placing high on various “best of” lists for ease of use and customer service.
4. Product Cost & Additional Fees
Customers often drift away from their cart to compare prices with another
product or site. Even if they¹re not lured away, this can still cause
distraction at a crucial moment in the buying process. Many customers also
leave their carts when they see shipping costs, having been spoiled by free
shipping elsewhere, as in the case of Amazon.
Bronto also studied 100 companies, including Overstock.com, and how they reduced cart abandonment. Most companies who got customers back post-abandonment did so via follow-up e-mail. And here are some of their best practices.
Key Takeaways for Marketers
1. Test to determine the optimal timing for email follow-up.
Other than the obvious, which is that sooner is better, there¹s no magic time interval for email follow-up(s) after a customer
abandons their cart. Conduct tests to measure response across different intervals; same day, 1 day, up to three days. Measure and evaluate.
2. Test incentives and promotions.
Everyone loves a discount. Test a percentage discount or free
shipping when they complete their cart purchase. This provides incentive to
complete the transaction. Also test a warm "thank you" and confirmation of next steps.
3. Avoid repeat abandoners.
Set controls on your program to keep shoppers from receiving abandoned cart
reminders every time they abandon. This can result in customers being
trained to abandon carts so they can receive free shipping or discount.
