An article in today’s Emarketer newsletter, “The Sad Tale of Abandoned Shopping Carts” reaffirmed what we’ve been preaching for quite some time now: every potential customer who puts items in their cart and leaves without ordering is a significant loss. Just how big of a loss? Well, according to Emarketer, “the average cost of abandoned goods in those shopping carts was $109.” And just how rampant is this problem? According to a Paypal and comScore study, 45% of US online shoppers have abandoned MULTIPLE carts in the past three weeks! What is a retailer/advertiser supposed to do?
Emarketer listed the following top 4 reasons for abandonment and the percentage of respondents who gave that reason – I’ve also listed my ideas for combating the issues:
1. High shipping charges: 46%
It’s no secret that many online retails make significant revenue off the shipping fees they charge and that angers many shoppers (myself included). How many of us have paid $8 for shipping to an eBay seller, only to get the package and find the seller paid $1.50 to send us the package? Companies who make a strong effort to keep shipping costs low (such as using the flat rate boxes from USPS or negotiating rates with FedEx or UPS) and pass the savings on to the customer build stronger credibility and repeat customer relationships. So, first off, reduce your rates if you find many customers are bailing at the point of seeing your shipping cost. Secondly, use a shipping calculator or post your shipping fees so customers can see what they are going to be charged before starting the purchase. Third, create a shipping club like Amazon Prime if appropriate. For $79 a year, you’ll get free 2-day shipping on all products you buy – this encourages repeat purchases as well.
2. Wanted to comparison shop: 37%
If customers want to compare prices and you are confident you can meet or beat other retailers, why not help them out with this? No matter what, you don’t want prospects to close the window or tab they are using to browse your site because that increases the likelihood they won’t be able to find you again (particularly if they found you from organic search). Why not post links to your competitor’s products on your site that will open in new windows/tab with a price match guarantee? That will ensure your window stays open while they browse other sites – and customers may come back to you because you gave them the information they needed. Progressive Insurance gives you quotes from their competitors (even when the competition is lower) so you can decide which company to go with – and I suspect that on a regular basis, customers will choose Progressive over a less expensive policy simply because they have become trustworthy for providing this information.
3. Lack of money: 36%
Ok… not too much you can do here other than offer a discount. But if customers are not buying because they don’t have the money, you might want to steer clear of them. Customers who purchase items they can’t afford have a much higher return and charge back rate – which means expensive customer service issues for you. Proceed with caution.
4. Wanted to look for a coupon: 27%
Some people (like myself) are always looking for some kind of discount. In fact, I almost never go to a restaurant or department stores without a coupon. That’s because many restaurants and stores make coupons so readily available. I know that Macy’s will run coupons nearly every week in the Sunday paper and that Bed Bath and Beyond will mail me one every month. I know that Restaurant.com is going to send me an email at least once a week for a discount on my discount coupon purchases (how is that for irony). If you don’t want to be known as a retailer that always provides coupons for your store (think: Walmart with “Always low prices”) then don’t make your coupons so prominent. Send them sporadically to your existing customer list and don’t provide universal coupon codes that people can forward on to their friends who you in turn won’t capture information for. Or, create a discount shopping club, such as the one offered by Newport News. For $25 a year you get 10% off every purchase and eight times a year you get 20% off… not a bad deal at all. This, like the shipping club, also promotes repeat business with customers who feel like they have an “in.”
What if you still have abandonment issues?
As I’ve mentioned before, you must try to regain business from shopping cart abandoners… and Marketing Automation is the best answer. Check out my previous post, “How to Regain Business for Shopping Cart Abandoners” for instructions on how to create and launch such a campaign.
