In the first two parts of this series, we briefly covered the “who” and the “why” of shopping cart abandonment. In this blog post, we’ll talk about what areas you should focus your efforts that will help convert abandoners into customers.
What can be done to convert abandoners into customers?
In the typical eCommerce conversion funnel, the shopper starts on the landing page and then moves on to the product page, adds the product to the shopping cart and then proceeds to checkout. The first step in converting abandoners into customers, then, is understanding how shoppers arrive at the shopping cart.
In our research, email remains the dominant force in getting shoppers to ecommerce sites. Overall, we found that traffic arriving at the shopping cart breaks down into the following categories:
58% via email
17.9% via direct URL entry
10.3% via search
4.8% via SEM
4.3% via link
4.3% via social media
1.7% via display advertising
We also researched conversion percentages of the different methods by which shoppers arrive at the shopping cart. In other words, for any given method, how well did it sell? Just take look at these conversion rates:
67.7% for email
23.6% for direct URL entry
1.65% for search
2.11% for social media
1.75% for link
0.88% for SEM
0.53% for display advertising
The next step in converting abandoners into customers is to capture the email addresses of all site visitors and use those email addresses to convert customers. After all, only 3% of visitors will buy on any site visit – 97% don’t. But a returning customer is nine times more likely to buy compared with a new visitor. Email can be used to nudge abandoners to return.
Key take away: email remains an eCommerce staple. The further a visitor progresses down the funnel, the more likely that the eventual conversion will come following a click from an email. (…)
In my previous post, we quickly profiled a typical abandoner on eCommerce websites. We learned that abandoners are college-educated, well-to-do individuals who actually end up spending 19% more money than their non-abandoner counterparts. Now that you know the “who,” let’s dive into the reasons driving those high percentage abandonment rates.
Why are people abandoning?
In the U.S., 88% of online customers – 136 million people – abandon shopping carts each year. Two primary factors are driving the abandonment numbers. First, customers are becoming more sophisticated buyers. Easy access to competitors and the ability to easily compare prices are changing buyer behavior, both online and in-store.
Forrester Research has found that the top two causes of abandonment are price and timing. Parse the Forrester findings and you’ll find that, among the abandoners:
44% thought that shipping and handling costs were too high
41% were not ready to purchase the product
27% wanted to compare prices
25% found the product price was higher than their budget
24% just wanted to save for later purchase
Other researchers found similar, price-driven reasons for shopping cart abandonment. An e-tailing group study found that 47% of consumers are unwilling to purchase unless a promotion is offers. Likewise, 36% of consumers will not buy unless free shipping is offered, according to comScore.
So what does that mean for your eCommerce website?
Tuning your website to make the checkout process smoother is only part of the answer. To improve your conversion rates, you must also design remarketing campaigns to address price and timing objects.
In the next part of the series, we’ll talk about what can be done to convert abandoners into customers.
There is no doubt that shopping cart abandonment is a growing eCommerce concern. Our research shows that a whopping 72% of website visitors who add items to their shopping carts ultimately abandon those carts without making a purchase.
In this blog series, I’ll discuss the findings from our extensive study of online behavior, including research performed by SeeWhy as well as third parties. I want to help you understand why some customers buy online and why others don’t. And I want to provide you with key takeaways that can help significantly reduce your shopping cart abandonment.
So, Who’s abandoning?
One of the first questions raised by shopping cart abandonment is who, exactly, are the abandoners?
It turns out that the typical abandoner earns more than the average income, holds a college degree, and has been shopping online longer than non-abandoners. The average abandoner spends 19% more each year, compared to visitors who don’t abandon.
Taking a closer look at the abandoner population reveals some interesting gender-related patterns as well. For instance, males are likely to compare prices and less likely to abandon. Females, on the other hand, are likely to save products for later, take longer to buy and are even more sensitive to shipping and handling costs.
Whats your experience with shopping cart abandon? What are some reasons you’ve abandoned in the past?
When Deckers Outdoor Corp. came to SeeWhy for help improving its online sales, the company had already established itself as a premier lifestyle marketer as well as a marketing innovator adept at growing niche brands into global lifestyle leaders. Deckers is the company behind UGG® Australia, TEVA®, SANUK®, TSUBO®, AHNU® and MOZO®. Deckers knows how to build a brand, and one thing they value is delivering a strong customer experience.
As you can see in our recent case study, Deckers selected SeeWhy to better serve website visitors throughout their online shopping experience. The company implemented many innovative remarketing techniques to make sure they could connect with customers “in the moment”. Here are three lessons that ecommerce companies can learn from Deckers’ unique approach to email remarketing:
Lesson 1: Make an Impression with Mobile Deckers recognized that its customers were increasing their mobile email use, a trend that affected all channels, including email channel sales. Approximately 50 percent of the people who received an email from Deckers opened it on a mobile device. While convenient for customers, mobile email was having a huge negative impact on email sales: mobile users were converting at a lower rate than their stationary counterparts.
Recognizing that mobile trends won’t be reversing anytime soon, Deckers moved decisively to get ahead of the curve. Today, the company’s SeeWhy-driven abandoned cart program offers tighter targeting and more sophisticated remarketing, complete with browse campaigns and different types of automated, behavior-based triggers. The result? Deckers is increasing revenue despite the negative conversion impacts of consumer behaviors on mobile devices.
Lesson 2: Multiple Messages Maximize Returns SeeWhy’s email remarketing experience has led to a series of best practices that continues to stand the test of time. Among these are the timing and tone of the remarketing emails. (…)
The Wall Street Journal reported recently that both Target and Best Buy plan to price match online prices with Amazon and other major online merchants in an effort to combat showrooming. This is a flawed tactic to compete with online merchants on their turf rather than focusing on strategic differentiation to change the game. It illustrates a lack of understanding of how and why customers are buying and what drives loyalty.
Both retailers have plenty of caveats in their terms and conditions: You have to be able to prove that the price and product is available, and managers will have a right of veto in some cases. Will this stop showrooming or actually encourage it?
Over the holiday period last year, 60 percent of holiday shoppers started their holiday shopping search at Amazon, looking to establish a base price. Research shows that showrooming is real: Consumers use their mobiles first for checking store locations and opening hours, then for price checking.
However, this is missing the point. Yes, consumers can and will check online prices when in store. Yes, consumers are heavily driven by price in today’s economy.
But, consumers also value other things in addition to price alone. These are essentially ‘experiential’ benefits of shopping in the mall — the ability to just drop into a store when you’re passing, try on items of clothing or look at the available connections on a TV, to get advice from a friend or from a member of staff, and of course, the instant gratification that comes with taking the item away immediately. Not focusing on these benefits to concentrate on price on your competitors’ terms makes no sense.
All big box retailers should read PwC’s Experience Radar which examines the motivations
of consumers to buy from a particular retailer. In this chart, while price is the number one factor influencing where to shop, past experience, brand and convenience are also significant factors. (…)