According to recent abandoned cart research (1), the average cart abandonment rate is around 69,99%. That means that out of every 100 potential customers, nearly 70 of them will leave without making a purchase. This is a huge problem for online stores, as it represents a lot of lost revenue.
We consider the issue as a strong subject line with our clients as well and would like to share some knowledge and experiences in this field. In this blog post, we will discuss ways that you can investigate the reasons and recover abandoned cart sales to increase your revenue!
What is the meaning of cart abandonment?
Cart abandonment simply describes an instance in which users add items to the online shopping cart but do not complete the purchase and leave the cart page. Increasing abandonment of carts can lead to a decrease in conversion rates (CR) and can also cause unhappy user experiences (UX).
When customers abandon carts, this can negatively affect your business creating lost buyers. It appears that a sale opportunity has been lost and reduced your income.
What are the reasons for cart abandonment?
There can be many reasons for cart abandonment. In order to reduce this number, it is important to know what they are. Once you have this information, you can work on fixing the problem areas and improve your conversion rate.
Some of the most common reasons include:
- The user was not ready to buy: This could be due to a variety of reasons, such as the user just window shopping or not having the budget for the item at that time.
- The store site was slow or crashed: This can be a major turnoff for users, especially if they are in the middle of making a purchase.
- The user got distracted: This is a common one, especially with the rise of social media and other online distractions. It’s easy to get side-tracked when you’re online, so users may forget that they were in the middle of making a purchase.
- The user didn’t trust the store: This is a big issue, as users need to feel confident that their personal information will be safe when making a purchase online. If they don’t trust the page, they’re not going to risk inputting their credit card information.
- The checkout process was too long or complicated: A lengthy and complicated checkout process can be a major turnoff for users. If it’s too much of a hassle, they may just abandon their carts and leave.
- The shipping costs were too high: This is a common issue, as many users are not willing to pay high shipping costs. If the total cost of the purchase is too high, they may just decide to buy from a competitor who has lower shipping costs.
- The user couldn’t find a coupon code: This is another common issue, as many users will search for a coupon before making a purchase. If they can’t find one, they may just decide to buy from a competitor who offers them a discount.
Abandoned carts statistics
According to the next survey (2) 1/3 of users abandoned carts because they were not ready to buy and just looking. 1/4 do it to compare prices. 15% decide to buy in-store instead. This group is significantly numerous and really difficult to attract to your offer. They compare and visit different stores online and offline before deciding on a purchase.
Internet user habits influence your online store
The internet has become an integral part of daily life for many people, but it can also be confusing. People are switching from one site to another in milliseconds and looking at how they might save some money or time with discount codes etc. This is where fast sites come into play and USPs (unique selling propositions), which allow us to distinguish between offers that would appeal more than others.
The following data shows what metrics they consider when already decided for purchasing are delivery time, payment options and technical issues.
Abandoned carts as lost sales
Baymard (1) separated the above reasons for internet usage and focused on the remaining reasons when engaged visitors are more likely to purchase and despite that decide to abandon product pages, checkout or cart pages in the purchasing process.
Source: Baymard Institute (1)
The main reasons are extra costs, hidden fees, the necessity to create an account and too slow delivery.
The most important users’ needs:
- a simple and fast checkout process with
- all the necessary information about cost and
- delivery time presented up-front.
This builds trust and makes the customers feel secure and well-informed.
The site is too slow
According to Google reports, most people will bounce the site after 3 seconds of waiting for the response. The reports found that 15% said they were not able to use the checkout page due to its slow loading times.
How to make the slow Magento Page faster to prevent abandonments check in our Ebook – it explains how Hyvä Themes can improve Magento Page Speed and UX measured by Google Metrics.
How to track reasons why people abandon carts?
There are a few different ways that you can check the cart abandonment reasons on your webpage.
One way is to use Google Analytics. You can set up a goal in Google Analytics that tracks when a user abandons their cart. This will give you data on how many cart abandoners and on which pages.
Another way to check the lost carts’ reason on your website is to implement user tracking software. It allows seeing what customers are doing on your website in real-time. This can be helpful in identifying issues that are causing users to abandon their carts.
Tools for user tracking onsite
There are a few different tools that you can use for user tracking on your website. One option is. Hotjar is a user-tracking software that allows you to see what users are doing on your website in real-time.
Hotjar Part 1 – Overview
Hotjar Part 2 – Overview
Other options are Mouseflow or FullStory. Such a tool is a great way to get insight into how your users are interacting with the site. You can see what they’re clicking on and which pages cause them problems or give up before buying anything.
Data-based UX strategy
When doing a UX audit of your store or regular analysis on a daily basis you will probably mix several tools and compare data to take the best knowledge based on qualitative and quantitative data to make data-driven decisions.
For more knowledge on UX strategy please read our blog article – How to make the best user experience (websites UX)?
The above tools will let you track single-user movements onsite, and analyze recordings to identify the places generating problems for the users. You may get data presented on heatmaps, showing the hottest places people focus on and the coldest they ignore.
The tracking tools will help you to identify trends when better explore and understand your metrics. It is also possible to conduct surveys and get more info from real users when asking questions and gathering qualitative data to make an in-depth site overview.
eCommerce UX strategy preventing shopping cart abandonment
There are a few different ways that you can improve the user experience on your website.
- Transparent checkout process.
- Guest checkout.
- Various payment options.
- Offer Free Shipping.
- Live chat or chatbot service.
- Social proof and trust badges.
A simple checkout process prevents lost sales
Make sure that your checkout process is as simple and easy as possible. You can consider one-page checkout which allows users to see all necessary data at once. It’s fast and simple.
When you decide to divide the checkout process into more stages, show the progress so the customers were informed at what stage they are. They also should have the chance to navigate between stages without losing introduced data.
Guest checkout option
Don’t force users to make accounts, allow them to decide whether they want to make one, you can create an incentive e.g. discount coupon.
Users are more likely to do extra things when they are rewarded. And they do not like being constrained and love having the freedom to choose.
Variety of payment options
Another way to improve the user experience on your website is to offer a variety of payments. Depending on the sector you operate consider e.g. bitcoins or any popular ways of payment satisfying your customers.
Free delivery
Offering free shipping on all of your products may satisfy clients and prevent them from extra costs. And will bring you an increased average order value.
Life Chat and Chatbot
Providing a live chat or chatbot service will allow users to get help if they have any questions or issues with the website. They are more likely to stay on your site when your customer service is at the highest level.
Trust building security
You can also improve the user experience on your website by adding social proof and trust badges. Visual trust-building incentives encourage customers to follow checkout steps.
Here is an interesting survey of this issue from Baymard on how users perceive security in the checkout process (4)
How to recover abandoned carts
As one of the Magento store owners, you certainly use carts recovery technics. The Magento abandoned cart strategy is a combination of data and technology that should support your marketing and selling ingenuity.
Exit intent pop-ups for Magento abandoned cart
When the users want to leave the page you can show them pop-ups presenting special offers and incentives to convince them to stay.
Source: https://gleam.io/blog/abandon-carts/
The exit intent pop-ups may:
- give promotions, discount coupons,
- create urgency in placing time frame,
- present actual cart status, showing what the customers have placed and asked if they really want to leave just in case it was a mistake,
- show the purchasing progress giving a possibility to save the goods placed in the cart just in case the client needs more time to think the purchase over,
- offer extra values like white papers, eBooks, webinars
- ask for feedback to help you improve your site UX.
Find some great examples of the mentioned above pop-ups in the Nielsen Norman Group article (3).
It’s worth mentioning that using pop-ups you should be careful not to disturb the user too much as it may have a negative impact on your brand.
Email remarketing
The first step in recovering an abandoned cart is identifying it. When the user abandons the cart after placing goods and introducing the personal data all you need to do is identify this fact and act fast to remind the user about accomplishing the shopping process.
Marked abandoned carts
Magento eCommerce platform stores the data about the goods and delivery of every single user, so you could send a personalized email to the client the same day after a few hours the cart was abandoned.
The statistics (5) show that it’s the most effective to send 3 emails to recover 69% more orders than with a single email.
Recovery email TEMPLATES
Recovery emails should be created according to some rules:
- send them consequently, in a sequence of 3 on the same day and a few days after the cart was abandoned,
- link to the checkout page where all the products and delivery data are completed so the user is not bothered with making an additional effort,
- personalize the email templates with names and brands so the user recognizes the situation right away.
Magento store support for abandoned cart recovery
The Magento eCommerce platform stores all data necessary for creating remarketing email campaigns. All customers are segmented and attributed to the sectors you can work on with personalized messages.
Using your own assets will make these campaigns successful will complement digital marketing actions and make spending money on digital ads more profitable.
Please have a look at the following recommendations to recover lost sales and follow up with users who abandoned the carts and persuade them to get back to their abandoned shopping carts.
Magento extensions for abandoned carts recovery
You can choose between free and paid options from Magento Marketplace. Here are the two we could recommend.
The first one is HubSpot Integration by Eymagine. It automates and personalizes abandoned cart nurturing. Enables laser-target one-off emails to your prospects. The personalization options include upselling or cross-selling products as well as reordering forgotten items from deliveries!
The second is a paid option Abandoned Cart Emails by Amasty. Using this extension you can send automated abandoned cart emails to customers who left your store without making a purchase and set up rules based on different parameters.
Abandoned carts recovery according to Panda Group Know-How
We recommend using marketing automation tools e.g. klavyio, SALESmanago, edrone. They easily track cart abandonment and allow for simple automation and personalization of the process to make it as fast and simple as possible.
If you have a problem recognizing the tool to use and what option will be best for you let’s talk to make the best possible decision.
Conclusion
No matter how much you are affected by the abandoned cart phenomenon a slight UX improvement may bring you extra profits and increase sales.
And abandoned cart recovery is a simple strategy easy to implement with marketing automation. If you have a problem choosing the best solution we may help you. Let’s talk!
Resources:
- https://baymard.com/lists/cart-abandonment-rate
- https://www.salecycle.com/blog/featured/10-fascinating-stats-cart-abandonment/
- https://www.nngroup.com/articles/exit-intent-good-ux/
- https://baymard.com/blog/perceived-security-of-payment-form
- https://www.oberlo.com/blog/email-marketing-statistics
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