Introduction:
Cart abandonment is when a customer adds items to their shopping cart but leaves the website without completing the purchase.
Did you know that over 70% of online shopping carts are abandoned? (Source: https://www.shopify.com/blog/shopping-cart-abandonment#1) That's an incredible amount of money left on the table!
Imagine you made $1 million in revenue, this means you probably have $2.3 million abandoned in your cart!
In this blog post, we're diving into the fascinating world of cart abandonment and how businesses can tackle this challenge head-on.
What is Cart Abandonment?
Cart abandonment is when a customer adds items to their shopping cart but leaves the website without completing the purchase. It's like filling up your grocery cart but leaving it in the aisle before checking out.
Why Does Cart Abandonment Happen?
From unexpected costs to lengthy checkout processes, there are several reasons why customers abandon their carts.
The first step to solving a problem is understanding why it happens.
According to the Baymard Institute, the top reasons why customers abandon their carts are:
Reasons for Abandonments During Cart & Checkout (2024 data):
- 48% Extra costs too high (shipping, tax, fees)
- 26% The site wanted me to create an account
- 25% I didn't trust the site with my credit card information
- 23% Delivery was too slow
- 22% Too long / complicated checkout process
- 21% I couldn't see / calculate total order cost up-front
- 18% Returns policy wasn't satisfactory
- 17% Website had errors / crashed
- 13% There weren't enough payment methods
- 9% The credit card was declined
Source: 49 Cart Abandonment Rate Statistics 2024 – Cart & Checkout – Baymard Institute
Some other reasons customer abandon their carts are;
- Low Buying Intent
- Comparison Shopping
- Using Cart as a Wishlist
Similarly, these issues can also be fixed by improving design and adding simple features.
How can you reduce cart abandonment rates?
The best way to reduce cart abandonment is to fix problems before you reach that stage. Prevention is better than the cure. And by preventing cart abandonment, you improve the customer experience for everyone.
1. Transparent Pricing
The No. 1 reason for cart abandonment is “Extra costs too high (shipping, tax, fees)”. 48% of abandoned carts were attributed to this one reason. And this is a decrease from 55% in 2018!
We suggest using inclusive pricing. Inclusive pricing adds costs such as shipping, tax, and others to your initial price. While this can be more work, it can significantly increase revenue.
2. Guest Checkout
An increasingly popular feature, brands are transitioning to guest checkout. But sadly many are ignorant about their benefits.
Guest checkout allows users to buy without requiring them to make an account. This reduces the checkout journey & simplifies it.
3. Simplify the checkout process
An easy & often overlooked step is simplifying the checkout. Ask yourself, “What is the least amount of information I need?”.
This minimalist approach can recontextualize how your form is built. Often many fields we have are additional rather than need-based.
4. Alternate Payment Options
Alternate payment options such as Gpay, Apple Pay, ShopPay, and Klarna can simplify the checkout process. They can also enable quick checkout and increase the conversion rate.
5. SMS or Push Notifications with Incentives
If customers abandon their carts, the first step to completing the sale is getting their attention. The simplest (& more expensive) way to do this can be by offering them discounts and incentives. Offering incentives catches their attention & reminds them to finish the checkout process.
While SMS and push are highly effective, repeating the customer journey again may push away customers. So, recovering abandoned carts can be enhanced using deep links.
What are Deep Links
Google Defines Deep Links as “A type of destination URL in an ad that takes people to a specific page in an app.” (Source: https://support.google.com/google-ads/answer/6046977?sjid=9505636430109504623-AP)
In layman's terms, “Deep links send mobile device users directly to relevant pages in your app rather than your website.”
Cart Abandonment Journey:
Every store faces cart abandonment. How they focus on bringing them back is different. Each cart abandonment journey has to be personalized for each customer persona.
An abandoned cart journey is a series of steps designed to re-engage customers. This journey involves three main channels: email, push notifications, and SMS. Each channel has its unique strengths and best practices.
Email is the most well-known channel for cart abandonment. Emails provide a unique opportunity to engage customers with rich content. Unlike push notifications or SMS, emails enable storytelling & relationship building. It is great for nudging customers.
Key Tips for Abandoned Cart Emails:
Timing:
According to MailChimp, sooner is better. Aim to send the 1st email within 1 to 2 hours of the abandonment.
They also suggested a simple format for the emails you send.
The 1st should be a gentle reminder. The second adds urgency by adding a deadline. The 3rd usually includes a coupon or discount to incentivize customers to finish the sale.
Personalization:
Use dynamic content to personalize the emails.
Use the customer’s name and mention the products they have left. These small changes can have a massive impact.
Incentives:
As previously mentioned, incentives can be a powerful tool to complete the sale. These incentives are often presented as free shipping or a unique discount coupon.
But these incentives can be expensive. Hence, how they are offered should be balanced to maximize profit.
SMS
SMS is one of the most effective channels for abandoned cart reminders. SMS messages are direct & personal. Unlike emails, SMS messages are typically read within minutes of receipt.
Key Tips for Abandoned Cart SMS
Increase Opt-In by offering Value
A simple method of increasing the opt-in rate for SMS can be offering value such as delivery updates.
Simple & Short Messages
The average American reads at a 7th to 8th-grade level. So make sure your messages are short, simple, and impactful.
Deeplinks
Simply customer navigation to the abandoned cart by leveraging deep links.
Push Notifications
Push notifications provide a real-time connection with your customers. Push notifications are immediate and hard to miss. This channel is perfect for grabbing the customer’s attention and prompting action.
Key Tips for Abandoned Cart Push Notifications
Keep it Short
Push Notifications have the smallest amount of space. Be concise and to the point.
Personalise
Push is sent directly to the customer’s device. So it should be more personalized than an SMS.
Create Urgency
Catch attention and prompt action with phrases like “limited stock” or “exclusive offer.”
Deeplinks
Google Defines Deep Links as “A type of destination URL in an ad that takes people to a specific page in an app.” https://support.google.com/google-ads/answer/6046977?sjid=9505636430109504623-AP.
In layman's terms, “Deep links send mobile device users directly to relevant pages in your app rather than your website.”
The Strategic Advantage of Deeplinks
Imagine you’re advertising a sale on shoes:
- Without Deep Links: Users click the ad, open your app, and then have to search for the sale.
- With Deep Links: Users click the ad and are taken directly to the sale page in your app.
Deep links simplify the user journey & increase conversion rates by reducing roadblocks.
So, it should be evident how they can be a game changer for cart abandonment journeys. These smart links reduce friction and create a 1-tap customer journey.
Conclusion
The main reasons for cart abandonment are
- Extra costs,
- Account creation,
- Slow delivery,
- Complicated checkouts
These are fixable problems that can be quickly and easily fixed.
You can solve 80% of your issues with clear pricing, simplifying checkout & offering guest checkout. Add in multiple payment options like Gpay or Apple Pay and your abandoned cart should reduce significantly.
The key to reducing cart abandonment lies in creating a seamless and transparent shopping experience.
When carts are abandoned, timely nudges can re-engage customers and increase sales. Deep links can shorten navigation to make their journey easier.
By addressing these issues, you can turn abandoned carts into sales and boost your online store’s success.
