Trillions of dollars are lost globally due to one common problem – abandoned carts. Whether in brick-and-mortar stores or online shops, the value of products left in abandoned carts represents potential revenue that businesses miss out on. While a salesperson in a physical store can directly persuade customers to make a purchase, e-commerce businesses face distinct challenges in the online environment.
Let’s delve into the top reasons behind cart abandonment and provide effective strategies to tackle each issue.
Understanding Cart Abandonment:
Cart abandonment is the act of customers adding items to their online shopping carts but leaving the website without completing the purchase. It is a prevalent concern for e-commerce businesses, as it means potential sales slipping away.
Fascinating Cart Abandonment Statistics:
Some of the eye-opening stats include:
1. Only three out of ten customers who fill their shopping carts make it to checkout to complete their purchase.
2. Revenue losses of up to $4 Trillion occur annually due to cart abandonment.
3. Sectors such as home furnishing (90.50%), automotive (85.97%), and jewellery (84.49%) experience the highest average cart abandonment rates.
4. Cart abandonment rates vary across devices: 73% on desktops, 80.74% on tablets, and 85.65% on mobile phones (reflecting more impulse browsing on phones and more serious buyers on desktops).
Top Reasons for Cart Abandonment:
Research has identified several key reasons why customers abandon their shopping carts. Understanding these reasons is crucial for devising effective solutions. The top reasons include:
1. High shipping costs or unexpected fees: Unclear communication about additional expenses leads customers to abandon their carts.
2. A complicated or lengthy checkout process: Frustration arises when the checkout process involves multiple steps, mandatory account creation, or slow-loading pages.
3. Lack of trust or security concerns: Customers hesitate to complete their purchases if they doubt the website’s security or credibility, often due to the absence of security badges, trust seals, or customer reviews.
4. Limited payment options: Customers may abandon their carts if they cannot find their preferred payment method.
5. Inadequate return policy or customer support: A vague or unfavourable return policy, coupled with poor customer support, discourages customers from proceeding with their purchases.
6. Price comparison or indecision: Customers may compare prices on other websites or postpone their decision, potentially forgetting about their cart or choosing a different retailer.
7. Technical issues: Glitches, errors, or compatibility problems during the checkout process can lead to cart abandonment.
8. Lack of clear product information: Insufficient or ambiguous product details prompt customers to seek more information elsewhere, causing cart abandonment.
Effective Strategies for Recovering Abandoned Carts:
To combat cart abandonment and convert potential customers into loyal users, consider implementing the following proven strategies:
Abandoned Cart Emails:
Send personalized email reminders to customers who abandoned their carts. These emails should feature product images, a clear call-to-action, and incentives like discounts or free shipping to encourage completion of the purchase.
Retargeting Ads:
Utilize retargeting ads on platforms like Facebook or Google to display personalized ads to users who left items in their carts. These ads can showcase the products left behind and present compelling messaging and offers to re-engage customers.
In-store Pop-ups:
Consider using pop-ups that remind customers of their previous visit and the items left in their cart. You can also offer discount codes to increase the likelihood of a sale.
Chatbot or WhatsApp Widget:
Provide a chatbot or WhatsApp widget on your website to allow customers to ask questions and receive quick resolutions to potential queries.
SMS Marketing and Push Notifications:
Use bulk SMS marketing tools or push notifications within your app to send reminders and discount coupons to customers who abandoned their carts.
Clear Shipping and Return Policy:
Ensure that your shipping charges are transparent and clearly displayed before customers proceed to checkout. Additionally, clearly communicate your return policy to reduce cart abandonment.
Trust Elements:
Build trust with customers by displaying security badges, trust seals, and honest product reviews. These elements assure customers that their information is secure and reliable.
Simplify the Checkout Process:
Optimize the checkout process by streamlining it, offering guest checkout options, and providing multiple payment methods. Simplifying the checkout process reduces friction and increases the chances of completing a purchase.
Reduce Abandoned Carts With Unify:
Easy & Frictionless Checkout:
Unify enables lightning-fast checkout, providing ultimate convenience to customers. With prefilled addresses and order confirmation, the checkout process becomes seamless and hassle-free, reducing the chances of cart abandonment.
Emiza Converse – Enhancing Consumer Experience:
Emiza Converse facilitates two-way communication with consumers, allowing businesses to address issues like fake deliveries and engage customers through order confirmation, cancellation, and payment updates. This enhanced communication leads to improved customer satisfaction and reduces cart abandonment.
EDD Promise (Estimated Delivery Date):
Unify offers a guaranteed Estimated Delivery Date (EDD), creating a mesmerizing experience for users similar to Prime services. This assurance promotes Same-Day Delivery (SDD) or Next-Day Delivery (NDD) options, encouraging customers to proceed with their purchases.
Higher Conversion Rates:
By integrating Unify, businesses experience increased trust among customers, resulting in higher conversion rates and a reduction in drop-offs and abandoned carts. Unify’s seamless payment options also facilitate the conversion of Cash on Delivery (COD) customers to prepaid, further improving conversions.
Reduced Return to Origin (RTO) Charges:
With Unify, businesses can significantly reduce delivery returns and RTO charges, as efficient communication and enhanced tracking options help to ensure successful deliveries and minimize returns.
Multiple Payment Options:
Unify supports multiple payment options, including UPI (GPay, Paytm, Bhim, etc.), Credit Cards, Debit Cards, and Internet Banking. The presence of recognizable payment logos enhances customer trust and encourages online payments, leading to a decrease in cart abandonment.
Discounts and Promotions:
Unify offers exclusive discounts on online payments, incentivizing customers to complete their purchases. These promotions act as a further motivation for customers to proceed to checkout and finalize their orders.
Conclusion
Abandoned carts pose a significant challenge to businesses. However, armed with the right strategies and tools, this challenge can be turned into an opportunity for growth and increased revenue. By understanding the reasons behind cart abandonment and implementing effective solutions, businesses can regain lost sales and convert potential customers into loyal patrons.
By leveraging Unify by Emiza’s powerful features, businesses can create a seamless and customer-centric shopping experience, leading to a significant reduction in abandoned carts and an overall improvement in conversion rates.