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For those less familiar with the term, cart abandonment consists of adding products to the cart, starting the checkout process, and not completing the purchase. The cart abandonment rate is calculated by dividing the number of people who complete the process by those who do not.
The information is shocking:
69.23% of your customers are abandoning their carts
According to the Baymard Institute, the cart abandonment rate can vary between 60% and 80% depending on the vertical.
It is estimated that more than 25% of online retailers in Brazil do not know their abandonment rate. There is a lot of information to analyze, ranging from checkout funnel analysis, abandonment rate, recovery rate, and other KPIs that can be analyzed. But what is the point of all this if we do not put into practice effective actions to reduce abandonment and generate more revenue?
So, let's get to work:
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61% extra costs in the cart |
35% mandatory account creation |
27% complicated purchase process |
|
24% could not calculate costs beforehand |
22% online store with errors or glitches |
18% e-commerce did not inspire confidence |
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16% delivery method took too long |
8% few payment methods |
5% credit card declined |
How to tackle each problem?
Problem: extra costs in the cart
Solution: make all costs evident on the product page and in banners on your website; this will give consumers enough information to make a purchasing decision
Problem: mandatory account creation
Solution: allow your customers to make a purchase as guests; you will still have this customer's email and data to communicate with them and turn them into a recurring customer
Problem: complicated purchase process
Solution: eliminate any non-mandatory fields for the purchase. Collect data via email, in surveys, or by offering something in exchange for complete information. Remove links or banners that cause your customer to leave the purchase process. Have a progress bar or clearly defined steps. Offer real-time customer support
Problem: could not calculate costs beforehand
Solution: avoid surprises such as taxes, handling fees, or other costs that are not clear to the customer; try to include them in the final price. It is better to cost a little more than to negatively surprise the customer at the critical moment of payment
Problem: online store with errors or glitches
Solution: test, test, test. No one is born perfect, not even your online store. It is possible to test usability or functionality issues with your own team, collecting customer feedback or analyzing navigation through systems such as CrazyEgg
Problem: e-commerce did not inspire confidence
Solution: first and foremost, you need an SSL security certificate. The padlock in the navigation bar is a sign that your website cares about data security. Add trust elements such as seals, certificates, reviews, guarantees, exchange information, and clear return rules
Problem: delivery method took too long
Solution: we are living in the era of immediacy; 7 days for delivery is a long time. Offer Sedex at the PAC price or hire a carrier gateway (Axado or Intelipost) that will allow more delivery options and more competitive prices
Problem: few payment methods
Solution: before going around adding PagSeguro, MundiPagg, Cielo, MercadoPago, Boleto, Bank Transfer, Online Debit, etc., conduct research with your consumers and select only the bare minimum. Sometimes a little goes a long way to fix this problem, and don't forget: Brazilians love bank slips!
Problem: credit card declined
Solution: there are two possibilities: either your anti-fraud control saved you from a close call, or the customer did not have enough balance to make the purchase. In both situations, there is nothing you can do, but there are several payment gateways that offer better approval rates with excellent security
Recovering Abandoned Carts
Via email: install a module in your e-commerce store or hire a system to send automatic emails to all customers who abandoned their carts. The best strategy for these emails is a sequence that presents several messages and methods for recovering customers; one of them might work. First, send an email asking for the reason, then remind them of the cart, and finally, offer a discount to complete the purchase within a set timeframe; once the timeframe has passed, the offer MUST end. On average, 15% of all abandonments are recovered.
Via remarketing: when your customer leaves, they go somewhere else. Display ads with the products they abandoned in their cart on Facebook or the Google network and get them to come back as soon as possible to complete the order. Be nice and fun; many may find it intrusive.
On-site: present a message or an offer to your customer who is about to abandon the cart on your website. Many services can predict abandonment based on user behavior on the page and display a banner that can address the main objections; every opportunity to talk to your customer is an opportunity to learn about your business. Conduct research, offer discounts, or simply say "goodbye"
