When customers make purchases online, on average 3 out of every 10 that start the shopping cart process go all the way to complete the purchase. Seven out of 10 don’t and abandon the shopping cart. Shopping cart processes require visitors to fill in a form, submit personal details and click buttons. It’s a logical and completely rational process—at least to the ecommerce site.
But most buyers do not make purchases based solely on logic. This is where emotion comes in to play. Emotion is probably the single most important, and least understood, factor which makes the difference between a sale and a shopping cart abandonment.
Last week I caught up with Patrick Bultema, CEO of Codebaby, at the Conversion Conference. In the video interview below, I asked him about the ‘moments of truth’ that online visitors have when making purchases, and the critical role that emotion plays in many online purchases and shopping cart abandonment.
I’d love to hear your opinion on what role emotion plays in ecommerce. Please post your thoughts in the comments section of this blog. (…)
So what can you do, during the crazy holiday season, to reduce shopping cart abandonment? We thought we’d put together a holiday season checklist to help you keep your customers in the shopping cart this Christmas.
Price, especially shipping and handling, and shopping around for a deal
Not ready to buy
But what all the research tends to miss are the emotional reasons for abandoning a shopping cart. In particular, confidence in the brand, service and, if your site is not a global brand, the basic worry of doing business online with an unfamiliar brand.
Holiday Season Shopping Cart Abandonment Checklist
Hopefully you’ve been working on most of these items for months, but if not, it’s not too late to implement many of these this year:
Drive down shipping and handling costs
The number one reason why customers abandon shopping carts is the cost of shipping and handling. While you may have seasonal free shipping promotions planned, these are tactical and it is difficult to offer free shipping more broadly. But driving down your shipping costs to rock bottom should be a priority at this time of year. This should have a measurable impact on your conversion rates.
Minimum order free shipping
If you can’t offer free shipping, offer free shipping above a minimum order value. This should increase your average order value. Display prominently the minimums required for free shipping. Tell customers how much more they need to spend to get free shipping.
Give them valid voucher codes
We know customers are looking for deals at this time of year, and it is important to recognize this behavior.
While the federal U.S. CAN-SPAM laws apply across all states in the U.S., in Europe it is more complicated. In the European Union, individual member countries are required to craft their own local country laws based on the Europe-wide legislation. As the different countries implemented their laws, each interpreted the requirements of the European Privacy Directive slightly differently. This makes implementing a pan-European campaign more complicated.
Given this confusing landscape and our mission to simplify remarketing for all, we hired Ruth Boardman of Bird and Bird LLP, one of the world’s top privacy lawyers, to work with us and produce a definitive answer to these questions. Working with her colleagues across the U.S. and Europe, we set out to see whether there is one compliance solution that can be applied to both the U.S. and European markets, or if not, which countries could be grouped together to simplify compliance with both CAN-SPAM and the European Privacy Directive.
Ruth and I collaborated on a joint whitepaper that sets out what you need to do to comply for email remarketing campaigns in the following countries: United States, France, UK, Italy, Germany, Belgium, Spain, Hungary, Sweden, Netherlands, Finland and other European countries.
Ruth has also kindly agreed to present the findings with me on an educational webcast taking place on October 12, 2010, at 11:00 a.m. (…)
Lessons learned from Cyber Monday shopping trends 2009Black Friday and the holiday shopping season are fast approaching, and customers know this just as well as retailers. Based on last year, between Labor Day and mid-November we can expect online customers to change their behavior by deferring purchases. As an industry, we have conditioned our customers to expect exceptional offers in the run up to Black Friday.
“Screw it, lets do it” is how Sir Richard Branson describes his approach to business at the ExactTarget Connections conference last week.
Branson, the adventuring entrepreneur and chairman of the Virgin group of companies, is a rare individual. He started Virgin Records in 1970, and now 40 years later, the Virgin group of companies has eight businesses generating more than $1bn per year. According to Forbes 2009 list, he is the 261st richest person in the world, with an estimated net worth of US$3.9billion.
What’s different about Virgin is that it isn’t one company, or one idea, but a global brand with a distinct personality which spans retail, music, airlines, telecoms, media, drinks, energy and even space tourism. Branson describes the Virgin companies as a keiretsu – a family of companies that form a tight-knit alliance to work toward each other’s mutual success. What unites them is Branson’s vision, drive, personality and the Virgin brand values shared by all members of the group.
There’s much to learn from Branson’s business strategy and his willingness to break new ground in just about everything he does. Here are a few insights that I picked up on during his keynote at the ExactTarget Connections conference:
1. You don’t have to be a category leader to have a successful business
“We’ve had a lot of fun taking on fat cat complacent business. What we’ve done is be the small guy Yap Yapping at the big guys taking a small percentage of their market.”
Small percentages add up.
“Virgin has gotten big by being small. I don’t think that any Virgin business has ever been the biggest in its sector. Being small has its advantages – the Virgin Record label was able to attract the Rolling Stones because they know that they wouldn’t be lost on a long list of bigger bands”