I have long thought that the attention given to cart abandonment rates is misguided.
It seems as though most marketers see an abandoned shopping cart as an intent to purchase which, for any number of potential reasons, was stopped. They assume that, for some reason, the customer must have decided they were unwilling or unable to complete a purchase.
I don’t see it that way. Thinking like a customer, and reflecting on my own online shopping habits, I can’t accept that. Sure, this is the case with many abandoned carts. I don’t deny that this is the case a lot of the time. But if you really stop and think about it, there are probably a large percentage of abandoned carts for which the shopper never intended to make a purchase in the first place.
How many times have you added an item to the shopping cart just to keep it in an easy to find place in case you wanted to look at it again? Or, have you added to the cart simply because that’s the only way they’ll show you the actual price? Or in some cases, the online retailer doesn’t have wish-list functionality, so this is the only way to gather up the items you may be interested in purchasing at some time in the future. To me, these cases represent opportunity, but not failed conversions. The customer was never going to convert in the first place.
I mostly just wanted to get that off of my chest. Thanks, I feel better now.
But I do actually have something interesting to share with you. My friends at cloud.IQ created this informative infographic to illustrate the opportunities that abandoned shopping carts can provide.
Without further ado, I’ll hand it over to James, the founder of cloud.IQ…
Abandoned carts could be good for your business
It is well known that 75% of users abandon their online shopping. But there is a persistent misconception that these shoppers are simply lost. Retailers direct so much effort into driving traffic to their sites, it’s easy to forget about converting customers who may be about to leave after landing on your site. In reality, with a shift in perspective and a savvy remarketing strategy in place, customers on the brink of abandoning their carts present a fantastic opportunity to boost profits.
Anything from a lack of human interaction to high shipping charges can affect if a customer will take that final step and make a purchase. In the infographic below, cart recovery specialists cloud.IQ takes a look at the other common reasons customers abandon their carts.
But luckily, all is not lost! cloud.IQ have worked closely with retailers to successfully reduce cart abandonment levels and convert any abandoned baskets into sales. With just a few simple steps, such as offering live chats to shortening checkout time, retailers can take advantage of the incredible opportunity cart abandonment presents and increase their conversion rate by up to 20%.
James Critchley is CEO and founder of remarketing specialists cloud.IQ.