Shopping Cart Abandonment And How You Can Stop It

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?

In 2009, Forrester asked nearly 3000 web buyers why they abandon online purchases. In a recent study, Bronto analyzed the top reasons and classified them into 4 categories:

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.

Lowe's: Customers Personalize Their Experience with Cross-Channel Profiles

The Challenge: Purchase history is crucial information, but many marketers miss significant opportunities by neglecting offline purchase behaviors.

Digital advertising makes it simpler than ever to use purchase history for targeting offers. As brands like Amazon have demonstrated, personalization based on purchase history drives outsize returns. But while sophisticated marketers take full advantage of online purchase history, they often neglect offline purchase history.

According to a recent study by Nielsen Catalina Solutions (NCS), consumer packaged goods (CPG) brands achieve Return on Ad Spend (ROAS) of 3x or higher when they use offline "purchase-based information".

Marketers cannot leverage retail purchase information without collecting it. To do so while maintaining a positive customer experience, businesses need to create incentives for customers to link their online and retail purchase behaviors. Home-improvement retailer Lowe's has some innovative ideas.

Late last year, Lowe's Chief Information Officer Mike Brown led an effort to help customers manage home-related data, including receipts, appliance manuals and service warranties. According to a report in Bloomberg, "Customers will be able to scan a special card to monitor transactions, create room-by-room profiles of their homes and plan projects with store employees".

MyLowe's saves every member's in-store purchase history. This creates immediate value for customers: they can look up previously-used paint colors, track long-term renovation projects, and much besides. Most importantly, they can do this in-store or online.

Important new workshop Customer Experience Marketing: 5 Steps to Ensure Success developed by the DMA & Ernan Roman. Click to learn more.

The system also provides valuable data to Lowe's employees. At retail locations, sales associates can use MyLowe's profiles to provide superior customer service based on each customer's specific needs. And on Lowes.com, users who log into their MyLowe's accounts will immediately be reminded to take the next step on their home improvement projects.

With a simple set of tools linking online and offline purchase behavior and project planning, Lowe's has given customers a reason to maintain brand loyalty. Tom Lamb, Lowe's senior vice president of marketing and advertising, explained the value: "There's one part Home Depot loyalists, one part Lowe's loyalists. Everything in between ― and it's a big in-between ― is a jump ball. ... This is a tie-breaker."

TWO KEY TAKEAWAYS FOR MARKETERS:

» Link Online and Offline Purchase Data
Many businesses treat their online and retail businesses as separate silos. But without linking purchase data from both sources, marketers lose a significant opportunity. Build data stores that correlate shopping behavior across channels―including retail.

» Incentivize Customers to Consolidate Purchase History
Lowe's employees don't ask customers to enter their phone number or address at every trip to the check-out line. MyLowe's gives customers reasons to login to their accounts as they stroll the aisles. It's a win-win: customers have access to valuable data, and Lowe's consolidates purchase history across channels.

» Personalize Your Customers' Online Experience with Offline Purchase Data
Once you've collected offline purchase data, use it to create a highly-personalized online experience. Among other features, MyLowes sends seasonal purchase reminders―creating value for customers while driving revenue.