Everyone has been in this situation: they are perusing an internet store, adding products to their cart, and then leaving before clicking “buy.” Cart abandonment is a phenomena that affects all e-commerce stores, but you may lessen its effects by using a subtle cart recovery plan and email marketing campaign. Discover the most common reasons for cart abandonment and how to enhance your marketing approaches to turn abandoned carts into online sales.
What is shopping cart abandonment?
When a customer enters an online store, adds products to their shopping cart, and then decides to leave the website before making a purchase, this is known as e-commerce cart abandonment. There are a number of reasons why a customer could leave their online shopping basket, and clever email marketing can address many of them.
According to Garin Hobbs, SVP of client strategy and evangelism at Zembula, “e-commerce cart abandonment doesn’t usually have a positive connotation, but it is largely an opportunity for a brand to exhibit their value to a customer, to make a sale, and to generate long-term loyalty.” The majority of clients anticipate a standard ‘Hey [first name], you left some goods in your cart!’
Why do customers abandon their online shopping carts?
When asked why they left their online shopping carts, digital consumers cited shipping costs as the main deterrent (63%), followed by expired discount codes (46%), and lengthy shipment times (36%).
Many problems with cart abandonment are simple to fix. There is a significant probability you can fix their issue and boost your conversion rates if a consumer isn’t making a purchase because they don’t desire the item. You can anticipate a solution if you understand why clients might be leaving their shopping carts unattended.
The following are other frequent causes of shopping cart abandonment:
- There are no discounts offered.
- You don’t provide express delivery.
- Their credit card details must be entered again.
- The number of payment options is insufficient.
- They are worried about the safety of internet transactions.
- You demand that they register before making a transaction.
- The checkout procedure is overly difficult and drawn out.
- You have a return/refund policy that is unfavorable or unclear.
- Your customer service is subpar.
- Poor performance of your mobile website or app (e.g., it loads slowly, crashes or has errors).
- The number of your products is restricted.
- They were merely looking around, doing research, or doing price comparisons for a future purchase.
Small business owners should be aware of the intents of customers because today’s consumers are savvy and discriminating. Customers enter the e-commerce space with purpose and vigilance, according to Hobbs, and they are aware that businesses frequently send emails with discount offers in response to cart abandonment.
This degree of deliberate cart abandonment can be identified by marketers as gamification, according to Hobbs. “It’s challenging to combat, but identifying these deliberate abandoners is the solution with the proper martech (marketing and technology stack) in place. In any case, this is a prime example of the first commandment: Know your consumer. After that, you can decide how to proceed.
Average cart abandonment rates
Industry-specific shopping cart abandonment rates range from 70% to 80% on average. Even more people quit their mobile shopping carts, with an average abandonment rate of 85%. The total conversion rates for online purchasing have been rising over time, despite a sizable number of customers leaving items in their shopping carts.
How do you calculate your cart abandonment rates?
Calculating your current cart abandonment rate is a good place to start if you want to increase your e-commerce conversion rates. An easy equation can be used to accomplish this: Multiply by 100 after dividing the total number of transactions by the total number of shopping carts produced. Ensure that the numbers for all transactions and shopping carts in the equation come from the same time period.
What percentage of shopping carts are abandoned, for instance, if a business has 3,000 completed transactions and 10,000 total carts created in a given month?
Step 1: 3,000 completed transactions ÷ 10,000 shopping carts = 0.3
Step 2: 1 – 0.3 = 0.7
Step 3: 0.7 x 100 = 70%
In this example, the shopping cart abandonment rate would be 70%.
How do you recover abandoned carts with email marketing?
Consider abandoned carts as opportunities rather than as wasted sales. A visitor to your website doesn’t automatically indicate that you should stop connecting with them. Strategic email marketing is one of the best strategies to re-engage a potential consumer who had previously abandoned their shopping basket on your website.
45% of all cart abandonment emails are opened, according to recent polls. Aside from that, the typical abandoned cart email click-through rate is 21%, and the conversion rate for abandoned cart emails is about 10%. (although rates vary by industry, device and recovery tactics). This presents a fantastic chance for you to develop astute and timely cart abandonment emails that connect with your audience and boost conversions.
Hobbs advised using the following technique to enhance your cart abandonment email campaigns:
1. Show the customer what they are missing.
Recreate the shopper’s abandoned cart in the email, highlighting the precise goods they removed. Show them through imagery what they are missing out on by leaving their cart. Use the fact that emotion is frequently a factor in retail transactions to your advantage.
You can also show comparable in-stock items that are cheaper or have faster shipping. Allow customers to add dependable and appealing alternative options to their shopping carts.
2. Offer discounts and incentives.
Segment those recurring gamifiers when you examine your cart abandoners (customers who have a history of abandoning their cart and then converting when you offer a competitive coupon). Send them small coupons as soon as you identify these consumers. Recognize their worth, use their cost-cutting strategies, and close the deal.
Remember to A/B test various messaging, offers, and calls to action (CTAs) in real time when offering discounts and alternatives to customers to find out what connects with each consumer, down to which button color creates greater interaction. Run these tests for every campaign you run, and do so frequently throughout the year. Update your marketing plan when customer preferences change.
3. Close the shipping gap.
Customers now want free one-day shipping from all brands because retailers like Amazon provide it. Offer discounted or free delivery if they reach a certain cart value if a buyer is worried about shipping expenses. This will encourage more spending and demonstrate your brand’s ability to compete with conglomerates.
Offering more affordable or expedient delivery options, such curbside or in-store pickup, in your follow-up email is another way to close the shipping gap.
4. Simplify the purchasing process.
Offer the ability to complete purchases with a single click inside of emails to speed up the purchasing process. Create a re-engagement ecosystem and layered messaging system by syncing communications across email, mobile, and web channels. You can send messages to consumers using this reactive workflow based on a variety of anticipated user activities.
The performance of abandoned cart emails may be raised to an industry-standard recovery rate, according to Hobbs, with the proper optimization of timing, frequency, cadence, channel, and targeted content, offers, and context.
How do you create your own abandoned cart email sequence?
Your e-commerce business can be integrated with a number of excellent email marketing tools that will automatically create abandoned cart email sequences based on client behavior. The ideal email sequence (three, five, or six emails, for example) for your audience will depend on your clients and their unique needs because every business is unique.
Hobbs suggested a five-step process to get your abandoned shopping cart campaign off the ground:
- Send the first message as soon as it becomes available. Purchase considerations are frequently transient, and the best opportunity to convert is at the point of maximum customer intent.
- Show the exact abandoned item or suggestions for products that are broadly similar when personalizing the information.
- To seal the deal, provide a discount. Free shipping or a percentage off are two options.
- Use empathy, value, and brand integrity in your messaging.
- Regularly test your email sequences.
According to Harry Thakkar, partner at Avatria, “It is in the best interest of the site to identify why customers are abandoning their carts in the first place, in addition to trying to recover abandoned carts.” While eliminating all abandoned carts won’t be practicable.
Why should you send an automated series of abandoned cart emails?
According to research, sending three abandoned cart recovery letters in succession can lead to 69% more successful transactions than sending just one email. An automated series of abandoned cart emails can re-engage customers and increase income that would have otherwise been lost.
Similar to the adage, “Why travel an inch when you can go a mile,” said Hobbs. “When you can send a succession of automated, strategic, layered communications, why send just one email? Although they almost always have the highest open rates, click-through rates, and conversion rates due to their immediacy of delivery, one email won’t convert all abandoners.
Sending customised automated abandoned cart emails to each recipient will demonstrate to them that you are aware of their demands in addition to increasing conversions and recovering lost money. This can cultivate devoted clients and enhance brand reputation.