Abandonment during checkout is a major issue that ecommerce and retail businesses are confronting on a daily basis.
In fact, the average documented cart abandonment rate is estimated to be 69.89%. Finance industry has the highest abandonment rate, reaching up to around 83.6%, followed by the Travel industry with 81.7% (Smart Insights, 2017). Essentially, the abandonment of shopping carts costs businesses between $2 to $4 trillion per year and experts believe the number is on the rise.
Clearly not all abandoned carts can be recovered if you think about how users are just occasionally ‘window shopping’ and are not ready to buy. However, there are ~41.6% of customers who can be converted into finalizing the purchase, so you can start recovering that lost revenue right now.
We have summarized 3 possible ideas for you to start looking into when building your cart abandonment strategy.
Personalized product recommendations
The number 1 reason for which US online customers have left a physical store without making a purchase is not finding the product they were looking for (Usabilla, “Retail Nightmares” 2018). In their quest to find the right product, customers are moving into online. Personalized product recommendations will not only help customers find their products fast but might also help your business prevent the cart abandonment in the first place rather than react to it.
Most probably your site already offers product recommendations where customers can find “the most popular” products or products that are “bought together”. This is a first step on your way to a great user experience.
The next step to achieve a personalized journey is building machine learning algorithms that suggest products with the highest buying potential. You can do this by combining information about what other similar customers prefer with individual preferences and purchasing patterns. The context of the customer and his lifecycle stage will determine the best technique to be used. For example, a new prospect customer will see products that other customers purchase based on geography, user journey, demographic profile, weather as opposed to an existing regular customer, whose recommendations will focus on his own preferences and history with your brand.
The product recommendations can be integrated in several areas. You can have a product recommendations section on the landing page or on the product pages. Or, you can recommend specific products in your email communications or even in a chatbot serving as a personal shopping assistant. Keep in mind that the goal is to delight customers and create a consolidated user experience to which clients can keep coming back.
Personalized email reminders
Studies estimate that around 45% of the follow-up emails are being opened. Out of these, 21% are being clicked on. And 10.7% of customers that receive your email will potentially finalize a purchase. This is a promising statistic which you can’t ignore in your strategy to recover abandoned shopping cart.
There are several tactics that you can test to see which one works best for your customers. The first one is to schedule cart reminder emails at specific hours:
- 1st email sent in no more than 24 hours after abandonment
- 2nd email sent 2 or 3 days later
- 3rd email the following week
Alternatively, with the help of machine learning, you can combine different approaches and create a personalized email recovery plan tailored to increase conversion rates. Start with “wisdom of the crowd” to understand the times with the higher open email rates or which email subject line works best. Merge this tactic with customer’s personal preferences the more he interacts with your site and emails. Eventually, you will be communicating with the customer at the right time and with the right content, minimizing the risk of being lost in the inbox. We are predicting that this approach will convert more customers and be more profitable for your business.
So now that you have returned the customer to your site you need to make sure that he finalizes the purchase. Personalized call-to-actions will create a more relevant experience and will make customers feel they have a 1 to 1 dialogue with you. In fact, personalized CTAs result in a 42% higher conversion rates (Source: Hubspot, 2018).
You can welcome customer back and suggest finalizing the purchase. Test what call-to-action converts better with your customer over time and make sure what call-to-actions just don’t make sense at this stage.
With some customers a sense of urgency may motivate the purchase. For example, displaying the availability of products or the discount expiry countdown might push customers to the last step to buy the product.
With other customers social proof might work better. Try showing how many similar customers preferred this product over another one or prompt feedback and reviews to reinforce credibility.
Where to start?
The 1st step to take before deciding on the right abandonment cart solution is understanding where customers drop in the checkout flow. Google Analytics or other data analytics tracking tool that you’re using will help you figure this out.
With Win1to1 we analyze together the existing data and start calculating the lost revenue. Our specialists can help you find the right solution which will meet your strategic objectives and potential revenue uplift after implementing it. Sometimes one size doesn’t fit all.