A lot of e-commerce companies lose revenue due to their shopping cart abandonment rate, and here are 5 tips to fix this crucial business metric!
There’s no denying how online shopping has become the new face of retail throughout essentially every industry, but e-commerce comes with all sorts of different advantages and pitfalls.
Although you might not go to a store and put things in your shopping basket to then later realize that you don’t want those products, this is a normal consumer habit in the digital world.
It’s estimated that shopping car abandonment leads to around $2-4 trillion of lost revenue for e-commerce websites each year, so this metric is a serious concern for countless online businesses.
The good news is that the Data Talk squad has you covered when your e-commerce website is unfortunately experiencing high shopping cart abandonment rates, and below we’ll be detailing five tips to help improve your conversions and boost your bottom line!
What Exactly is Shopping Car Abandonment?
Shopping cart abandonment refers to when a potential online customer adds products to their shopping cart but doesn’t complete their purchase. When you calculate a shopping car abandonment rate, you’ll essentially be verifying the percentage of your e-commerce users who begin a purchasing journey but end up buying nothing.
Shopping cart abandonment is subsequently a crucial metric for gauging the overall performance of an e-commerce website, because higher abandonment rates typically signify bad customer experiences.
Experienced IT and VoIP services from telecom providers like Data Talk can go a very long way to reduce your website’s shopping cart abandonment rates, which can lead to increased revenue and sales. This is why online merchants absolutely must prioritize streamlining their checkout flow!
Calculating Shopping Cart Abandonment Rates
You can ultimately gain a much broader understanding of your e-commerce website’s performance and user experience when you know how to calculate your shopping cart abandonment rate.
In order to calculate your site’s shopping cart abandonment, you’ll want to first start out by dividing the total number of online transactions by the total number of created shopping carts. You’ll then subtract one from this quotient, and then multiply by 100 to get the percentage of your customers that abandon their shopping carts.
How To Reduce Your Company’s Shopping Cart Abandonment Rate
There are many factors that cause shopping cart abandonment, and the following strategies can help you address these issues and regain the effectiveness of your website’s checkout process:
1. Giving Your Customers Real-Time Assistance
E-commerce businesses can experience significant sales boosts when they introduce live chat into their websites, because this is an easy and effective way to improve your customer engagement.
Live chat tools can include things like real-time interactions with your call agents, which can help your customers to receive quick responses while also facilitating more efficient buyer decisions. Around 63% of online customers will be more likely to return to a website that offers live chat, as opposed to sites that don’t.
Live chat is undoubtedly one of the most preferred mediums for proactive business communications, and Cloud-based phone systems make it easier than ever for your team to text, voice chat, or email your customers in real-time. This tool also offers valuable analytics that help you more effectively target your website visitors with personalized messages for things like discount coupons and product recommendations.
So when your business incorporates live chat and other types of real-time assistance, it can help you enhance your customer experiences and significantly reduce your shopping cart abandonment rates!
2. Optimizing Your Website’s Performance
If your website isn’t lightning-fast these days, you could dampen your customer experience and cause people to not come back for more products/services. Efficient checkout procedures can make an entire world of difference when it comes to how your business delivers a positive user experience.
This means that e-commerce teams need to pay very close attention to website optimization metrics, including things like page speed, the number of pages toward checkout, page object numbers, and much more.
Online shoppers want a breezy browsing and checkout process, and optimizing your website’s overall performance will help keep your customers coming back again and again!
3. Offering Multiple Online Payment Options
Another very easy solution to improve your e-commerce site’s conversion rates is to provide your customers with various online payment methods. You really should be offering just about as many payment options as possible these days, because this makes it easier for your customers to choose which option is most convenient for their unique preferences.
This can include options like credit cards, PayPal, Venmo, and other digital transaction providers that have grown in popularity throughout recent years. A lot of online shoppers also prefer having the opportunity to space out their payments through customized financing options like PayPal’s Pay In Four, so offering many options can help you earn your customers’ trust and make them feel less uneasy about entering their credit card numbers and personal information into the Web.
And because a lot of people are concerned about making online purchases with their credit cards these days, it’s important to display security logos and badges near your transaction forms to help people feel better about purchasing your products!
4. Installing The SSL Certificate
It takes a lot of trust for online customers to place their financial and personal information into an e-commerce website, and this is especially the case in recent years as the threats of fraud and cyber crime have unfortunately increased.
This means that it’s a website’s overall responsibility to make people feel safe about purchasing products online, and not providing this invaluable sense of security can cause people to second-guess their purchasing decisions at the last minute.
One way to combat this type of scenario is to install an SSL certificate that offers privately secure connections on your e-commerce website. When you have this type of cybersecurity safeguard, you’ll advise your customers that your network is safe.
What’s great is that the Data Talk experts can do a lot more than just eliminate these types of consumer fears, because we’ll also manage your IT network and guarantee that it’s protected from all sorts of cyber threats.
And when your website is undoubtedly safe and secure, you’ll reduce the common types of shopping cart abandonments that occur when people feel uneasy about providing their personal information online!
5. Retargeting Your Abandoned Customers
When your website initiates retargeting strategies, you’ll essentially be bringing warm leads back to your online store. Although there are many ways to retarget customers that abandoned their shopping carts, one of the most effective strategies is known as personalized retargeting.
This means that instead of using generic advertisements, you’ll retarget your warm leads by reminding them of the products that they had in their carts—or the products on your website that they recently viewed. With some finesse and great content marketing, you can reclaim your lost customers and re-establish yourself as their go-to provider.
According to a recent 99firms study, businesses can increase their conversion rates by upwards of 26% when they retarget online customers that abandoned their shopping carts!
Still Have Questions About Reducing Your Website’s Shopping Cart Abandonment Rate? Reach Out To The Data Talk Team Today!
It would be wonderful if every customer interaction led to a completed transaction, but we simply don’t live in a perfect world!
Although every customer is unique, there are many common online behaviors and routines that e-commerce companies need to keep in mind. When you pay close attention to the above factors, you can ultimately be one step ahead of your competition by propping yourself up as an industry leader.
All of us at Data Talk understand how difficult it can be for businesses to improve their shopping cart abandonment rate, and you should know that our industry specialists are here to help you improve these valuable metrics through a variety of effective strategies.
If you have more questions about improving your conversion rates and streamlining your online checkout processes, feel free to reach out to us online or call us at 614-784-7100 to get in touch with our e-commerce specialists today!
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