Lowering the abandoned cart rate is a significant challenge for many e-commerce brands today. According to the Baymard Institute, an astonishing 69.57% is the average rate at which customers abandon their shopping carts. In simpler terms, nearly three-quarters of e-commerce customers embark on the buyer’s journey only to leave before completing their purchases.
Abandoned carts mean a massive opportunity for businesses if they know how to tackle this issue. Implementing an effective cart recovery campaign is crucial. To significantly decrease cart abandonment rates, brands can send reminders to customers regarding the items they left behind. One highly effective approach is to send an SMS targeting abandoned carts to potential customers specifically. This increases the likelihood of subscribers opening the message and taking action. By doing so, not only does your brand add a personal touch, but it also motivates customers to respond to your offer.
Here are 12 ways to reduce the abandoned cart rate.
1. Streamline the checkout process
Customers want efficiency when making purchases, desiring a seamless experience that allows them to return to their lives swiftly. Streamlining your checkout process eliminates unnecessary obstacles that may hinder their transactions.
The more obstacles customers encounter when recovering an abandoned product, the less inclined they become to finalize the purchase. Simplify the journey from SMS to checkout, enabling customers to transition effortlessly when they’re ready to buy. Utilize SMS marketing to create campaigns that automatically apply discounts, reducing the number of clicks required to complete a purchase.
2. Optimize for Mobile
More customers are using mobile phones for shopping, so ensuring your checkout process is optimized for mobile devices is essential. Making it straightforward to browse products and complete the purchase using their smartphones will improve customer satisfaction and decrease cart abandonment rates.
3. Offer multiple payment options
Customers seek the ease and convenience of using their preferred payment method, eliminating the need to repeatedly enter billing information with every purchase from a new brand. Take the initiative to discover your customers’ preferred payment options and ensure seamless integration for their utmost satisfaction.
Consider e-wallet options like PayPal, Apple Pay, and credit card integrations. Adding more payment options can reduce shopping cart abandonment rates by 8%.
4. Be transparent about costs
Avoid surprising customers with unexpected taxes and fees during checkout. Such surprises can make them feel deceived. Instead, be transparent and upfront about any costs associated with shipping, handling, and taxes. It is ideal to display this information on the product page.
However, fees may vary based on the user’s location or shipping address. Therefore, promptly provide updated pricing information when customers enter their shipping address.
If you cannot provide an exact figure, consider offering a shipping cost range before checkout. For example, you can indicate that domestic shipping ranges from $2.99 to $3.99 while overseas shipping ranges from $4.99 to $10.99.
5. Use retargeting strategies
Retargeted ads provide a friendly call to action, urging shoppers to complete their purchases. It’s crucial to investigate and understand the root cause of the cart abandonment to address them thoroughly. This knowledge enables personalized ad creation and the development of templates for common scenarios.
If shipping costs are the issue, consider offering free shipping to alleviate concerns. Customized content significantly boosts consumer engagement with ads and increases the likelihood of purchasing by 40%. Begin by reminding shoppers about their abandoned carts through a friendly call to action that encourages them to complete their purchase. To maximize reach, ensure that retargeted ads are present on both web and social media platforms, utilizing multiple channels.
6. Provide excellent customer support
Customers appreciate the human touch when they encounter issues purchasing items online. Whether it is a question about the product, shipping inquiries, or transaction concerns, having customer support available can reduce cart abandonment rates.
When customers have a complaint or question, they expect a prompt resolution. Live chat support lets them receive quick answers, alleviating any concerns hindering a purchase.
It’s important to note that live chat requires near-instantaneous responses, so it’s crucial to offer this feature only if you can deliver. Data demonstrates that the initial response time on a chat tool should be under a minute.
During non-business hours, a chatbot can take over; however, it’s essential to give customers the option to request assistance from an actual human if their issue remains unresolved.
7. Offer incentives
Customers love feeling appreciated, and offering discounts or free shipping can motivate them to complete their purchases. Consider adding a pop-up window when customers leave your site, providing a discount code if they return to complete the purchase within a specific time frame.
Another incentive option is to offer free shipping for a certain amount of orders. It encourages customers to add more to their carts and increase the overall value of their purchases.
Based on Jungle Scout data, 66% of American consumers anticipate complimentary shipping for all their online orders. Additionally, 80% expect free shipping when their order reaches a specific dollar threshold.
8. Improve website speed
A slow website can hinder customers from completing their purchases, leading to cart abandonment. You must ensure that your site speed has optimal performance across all devices.
Choose a reliable web host and optimize images and videos on your site. Regularly test your site’s speed and make necessary improvements as needed.
9. Enhance trust signals and security
Customers are wary of using their financial information when shopping online. Ensure your site has security measures, such as SSL certificates. Display trust signals like customer reviews, money-back guarantees, and secure logos on your site to build customer trust. This can increase conversions and reduce cart abandonment rates.
10. Utilize analytics and gather feedback
Utilizing tools like Google’s Advanced E-commerce Analytics can significantly enhance your ability to create comprehensive conversion funnels, providing valuable insights into the exact points where shoppers are dropping off. By generating a Funnel Visualization Report, you can uncover the specific pages shoppers visit and the proportion that remains at each funnel stage.
A significant drop-off on your payment page could signify unclear calls-to-action, limited payment options, or poor site functionality. These reports can also unveil any inconsistencies within your funnel. For instance, if customers are required to leave the shopping cart to sign in, it can increase the likelihood of drop-off. Armed with these insights, you can make necessary adjustments to optimize the user flow and improve overall conversion rates.
11. Personalize the checkout experience
An effective abandoned cart campaign should include a friendly reminder to customers about the contents of their cart. Providing an itemized list with clickable URLs for easy access is recommended. Additionally, consider including product recommendations for similar or complementary items, such as accessories, in your templates.
It’s possible that customers abandoned their carts because they needed help finding exactly what they were looking for. In this case, suggesting other items in a reminder email is helpful. For first-time visitors, offer an incentive or a discount code to encourage them to proceed with their purchase.
If customers are not ready to purchase, you can utilize cart abandonment and recovery SMS or emails to invite them to join your mailing list. This way, they can receive exclusive offers and stay updated on the latest products. You can effectively engage with customers who left their carts and increase the chances of conversion using these strategies.
12. Conduct A/B testing
When introducing a new design, layout, or content format, it is crucial to conduct A/B tests to determine the most effective version. Having multiple design iterations is essential if the initial one falls short. A/B testing enables iterative improvements based on the insights gained.
For instance, if a particular email subject line generates a higher open rate, it can be utilized as a benchmark to conduct A/B tests against other, even more refined versions until identifying the one that achieves the highest conversion rate possible.
When conducting A/B tests, it is essential to modify only one variable at a time, allowing for precise identification of the factors influencing the performance of the new campaign.
What does an Abandoned Cart mean?
An abandoned cart means a customer has added items to a digital shopping cart and left without completing a purchase from the site. When visitors to a website add products or services to their online carts but fail to proceed to checkout, this is known as shopping cart abandonment.
The cart abandonment rate is calculated by dividing the total number of completed transactions by the number of created shopping carts. Monitoring this rate can offer valuable insights into any issues with your sales funnel or checkout process. By optimizing the checkout experience and reducing cart abandonment, e-commerce retailers can improve conversion rates and generate higher revenue.
What are the Statistics About Abandoned Cart?
Studies have been made regarding the statistics of cart abandonment. Some studies place abandonment as high as 80%, while others place cart abandonment as low as 55%.
The 2016 average cart abandonment rate was 77.24%, which rose to 78.65% in 2017.
A recent study by Barilliance found that the global cart abandonment rate for Q1 2020 was 88.05%, a significant increase from previous years.
However, it’s essential to note that these statistics can vary significantly based on factors such as industry, device used, and geographic location. For instance, mobile devices have a higher average cart abandonment rate than desktops.
E-commerce businesses must track their cart abandonment rates and use this data to inform their strategies for reducing it. Businesses can improve their conversion rates and increase revenue by addressing the factors contributing to abandoned carts.
Why Is Shopping Cart Abandonment a Problem for Retailers?
Shopping cart abandonment is a significant problem for retailers because it directly impacts their revenue and profitability. Every abandoned cart represents a missed opportunity to generate sales and increase profits.
- Lost Revenue – Each abandoned cart symbolizes potential revenue that is lost. The transaction would have contributed to the business’s earnings if the customer had completed the transaction.
- Increased Marketing Costs – Businesses spend heavily on digital marketing strategies to drive traffic to their website. Every abandoned cart means the money spent on getting a customer to the site without any return on investment.
- Inventory Management Challenges – Abandoned carts can lead to difficulties in inventory management. Retailers might reserve items in the cart, meaning these products are unavailable to other customers.
- Lost Customer Acquisition Opportunity – Acquiring a new customer is often more costly than retaining an existing one. When potential customers abandon their carts, retailers lose an opportunity to turn a visitor into a loyal customer.
- Negative Impact on Conversion Rate – High cart abandonment rates contribute to low conversion rates, which may indicate a poor user experience or other issues with the online shopping process.
- Missed Cross-Selling Opportunities – Retailers can suggest related or complementary products when a purchase is completed, increasing sales. An abandoned cart eliminates these potential additional sales.
- Damaged Brand Reputation – Frequent cart abandonments may signal a poor shopping experience, damaging the brand’s reputation and discouraging new customers from purchasing.
Not only does cart abandonment result in lost sales, but it also adds additional costs to the business. Attracting customers to your site and getting them interested in your products or services can be costly. When they abandon their carts, those marketing expenses are essentially wasted. Therefore, reducing cart abandonment rates is crucial for retailers looking to improve their bottom line and maximize profits.
What Are Common Cart Abandonment Reasons?
There are numerous reasons why customers may abandon their shopping carts, and these can vary depending on the industry, target audience, or individual preferences. Below are some common cart abandonment reasons:
- Mandatory Account Creation – Consumers may not see the value of creating an account, especially if they only plan on making a single purchase. However, businesses often require account creation to reach customers through emails and enhance lead generation effectively. First-time buyers may be reluctant to share their email addresses or store their credit card information with the company. From the customer’s perspective, creating an account means remembering another password.
- Confusing Checkout Process – A seamless and logical checkout flow is essential for an ideal user experience. It’s crucial to avoid deterring customers by asking for excessive information during the purchase, such as their phone number, date of birth, or gender. Simplifying and minimizing unnecessary steps will provide a more streamlined and satisfactory checkout process.
- Unexpected Shipping Fees – Customers may abandon their carts when unexpected shipping fees are added to the total cost. Displaying these fees upfront or offering free shipping thresholds can help reduce cart abandonment.
- No Discount Codes – Numerous e-commerce businesses provide coupon codes or other incentives to attract first-time buyers. If you fail to offer such incentives while your competitors do, there’s a risk that your customers might choose to take their business elsewhere.
- Unclear return and refund policies – Online shoppers take on a certain level of risk when purchasing items, as they cannot physically inspect them beforehand. It is crucial for customers to feel reassured that they have the option to obtain a refund or return the product in the event of any defects or if it fails to meet their expectations, particularly for high-value purchases.
- Limited Payment Options – Customers may abandon their carts if they do not have the option to pay using their preferred payment method. Consider adding other payment options like e-wallets, mobile wallets, debit and debit cards to cater to a broader customer base.
- Trust and Security Concerns – Customers may abandon their carts if they do not feel confident providing their personal or financial information on your website. Having secure payment options and displaying trust seals help alleviate these concerns.
Why You Should Recover Abandoned Carts?
Recovering abandoned carts can significantly benefit retailers by increasing sales, reducing marketing costs, and improving customer relationships. Customers who did not proceed with the purchase are those who already have an interest in your products, thus making them more likely to convert than new customers.
Businesses can reach out to these customers using SMS or email to remind them of their items and intent to buy. They can also use this opportunity to offer incentives or personalized recommendations, creating a more tailored and practical marketing approach. By recovering abandoned carts, businesses can recover lost sales and improve their conversion rates.
How to Recover Abandoned Carts?
Abandoned cart recovery is a challenge for e-commerce businesses. Companies must encourage customers to recover their carts and proceed with the checkout process. Recovering is a tough ask for any business, but it’s a crucial step that cannot be ignored. On average, 70 percent of carts are abandoned. However, this number can be drastically reduced with the right strategies.
1. Use SMS Marketing
Implementing best SMS text message marketing practices can aid in customer recovery and enhance conversion rates. When creating a compelling abandoned cart text message, include the following key elements:
- Include a URL or Hyperlink – When creating your message, provide a URL or clickable link directly to the customer’s abandoned cart. It helps lessen the customer’s steps to return and complete their purchase.
- Mobile-Friendly Design -When creating text messages for mobile devices, making the call to action mobile-friendly is essential. Develop responsive UI that adapts well to various screen sizes. Additionally, consider employing a URL shortener to create a concise and easily clickable link for mobile users.
- Include Opt-out Option – It’s essential to provide customers with an easy way to opt out of future text messages. A clear opt-out option also helps build trust and credibility with your customers.
- Personalized Content – Personalization can significantly improve the effectiveness of SMS marketing campaigns. Consider including the customer’s name and details about their abandoned items in your message.
Learn more about SMS marketing and how you can leverage it for your business.
2. Use Push Notifications
Like SMS; push notifications are another effective way to reach customers through mobile devices. These messages are sent directly to a customer’s phone, providing an immediate and personalized reminder of their abandoned cart. Some key elements to use with push notifications to make them practical tools for reducing abandoned carts include the following:
- Timing – Timing is essential when sending push notifications. The notification should be sent shortly after the cart is abandoned while the customer still has your brand fresh in their mind.
- Personalization – Like SMS, personalizing push notifications with the customer’s name and specific items helps re-engage and encourage them to complete their purchase.
- Incentives – Offering an incentive such as a discount code or free shipping can entice customers to return and complete their purchases.
Push notifications allow businesses to send targeted messaging based on the customer’s browsing behavior and preferences, creating a more tailored experience and increasing the chances of conversion.
3. Use Email Marketing
Email marketing is another effective method for recovering abandoned carts. You can automate an abandoned cart email campaign and send it to customers who still need to complete their purchases. Some key elements to include in your abandoned cart emails are:
- Clear subject line – The email’s subject line should clearly state that the customer has left items in their cart.
- Personalization – As with SMS and push notifications, personalizing the email by including the customer’s name, abandoned items, or discount code can help increase conversion rates.
- Clear call to action – The email should have a clear call to action that leads directly to the customer’s abandoned cart. Make it possible for the customer to return and complete their purchase.
4. Use Retargeting Ads
Retargeting or remarketing ads are types of online advertising that focus on customers who have previously visited your website but didn’t make a purchase. These ads can remind customers of their carted items and encourage them to complete their purchases. Some key elements to consider when creating retargeting ads for abandoned cart recovery include:
- Targeted Ads – Use targeted ads focusing on the items a customer left in their cart. This personalized approach can entice customers to return and complete their purchases more effectively.
- Create Urgency – Sending limited-time offers creates a sense of urgency and encourages customers to proceed to buying your items.
- Use Dynamic Ads – Dynamic ads are personalized ads that display the items a customer left in their cart. This type of ad can be highly effective in reminding and enticing customers to return and complete their purchases.
Which Method Is More Efficient To Recover Abandoned Cart?
Businesses can use numerous ways and tools to recover abandoned carts and encourage customers to proceed with the purchase. Each method may vary in effectiveness depending on your business and customers’ behavior. SMS marketing has many advantages, such as a direct and immediate way to reach customers through mobile devices. SMS has the highest open rates compared to other methods, making it an effective tool for abandoned cart recovery.
However, combining these methods can yield the best results for recovering abandoned carts. Combining SMS marketing, push notifications, email marketing, and retargeting ads can provide a holistic approach to recovering lost sales.
Why Should You Use SMS For Abandoned Cart?
SMS is a highly effective communication tool for reaching customers directly on mobile devices. It has a high open rate of 98%, making it more likely to be seen by customers compared to emails or push notifications.
By sending follow-up messages via SMS, customers can finalize their intended purchase. These messages often include a link to their cart, conveniently displaying all the items they initially added. To further encourage these potential customers, offering a discount code or free shipping can be effective incentives for completing their purchases.
Moreover, SMS messages provide a swift and direct means of re-engaging customers who have abandoned their carts, ensuring a prompt response and the chance to regain their interest.
When to Send Abandoned Cart Messages?
Sending messages to return customers and recovering abandoned carts must follow specific timing. The first message should be sent within an hour of cart abandonment – while your brand and products are still fresh in the customer’s mind. If the first message doesn’t prompt a response, consider sending a follow-up 24 hours later. A final reminder can be sent after 48-72 hours if the cart is still abandoned.
While setting up these messages, remember your customers’ time zones. Sending messages in the middle of the night isn’t likely to yield positive results. Aim for times when your customers are likely to be awake and checking their phones, such as mid-morning or early evening.
Moreover, it’s essential to pay attention to the frequency of messages. Too many messages can frustrate customers and lead them to opt out of receiving future communications. Conversely, more messages might be needed to remind or incentivize customers to finalize their purchase sufficiently. It is crucial to have the right balance to ensure effective campaigns for cart recovery and increase revenues.
How to Create an Abandoned Cart Workflow with SMS?
An automated abandoned cart workflow with SMS can be created using a marketing automation platform like JookSMS to track customers’ shopping cart activities and send targeted SMS messages when a cart is abandoned.
- Setting Triggers – Set up a trigger once the integration is complete. This is an event that initiates the automated workflow. In this case, the trigger would be when a customer abandons their shopping cart.
- Creating an SMS Template – Create your SMS message template. This should include a friendly reminder about the abandoned cart and a direct link to the cart. Personalization can be added to the message, such as the customer’s name or the items left in the cart.
- Adding Incentives – Consider adding an incentive to the message. This could be a discount code or free shipping, encouraging the customer to complete their purchase.
- Scheduling – Schedule the SMS messages. The first message should be sent soon after the cart is abandoned, with follow-up messages sent at predetermined intervals.
- Testing your workflow – Lastly, test your workflow to ensure everything works as expected. Ensure the messages are sent at the right time and contain the correct information.
You can quickly see the most effective messages and modify your strategy based on accurate data, enhancing your overall marketing efforts. Moreover, automating this process has several benefits, such as the following:
- It saves time. With automation, you need to manually track each abandoned cart and send follow-up messages, which is time-consuming and efficient.
- Automation ensures consistency. Each customer receives the same high-quality message at the right time, improving the odds of recovering the sale.
- Automation allows for easy tracking and adjustment.
What are the Best Tools For Abandoned Cart Recovery?
Marketing platforms effectively help businesses manage abandoned cart rates and improve their recovery efforts. Some of the best tools for abandoned cart recovery include the following:
- JookSMS – This platform offers automated SMS marketing with a user-friendly interface, making creating effective abandoned cart workflows easy.
- PushOwl – With this tool, you can send personalized push notifications and retargeting ads to recover abandoned carts.
- Klaviyo – This platform provides an all-in-one email marketing solution with advanced automation capabilities, making it an ideal choice for email recovery campaigns.
- RetargetApp – This tool focuses on retargeting ads, making it an excellent choice for businesses looking to use this method primarily.
- CartStack – This platform offers a comprehensive solution for abandoned cart recovery, including SMS and email marketing, push notifications, and retargeting ads.
The best tools for your business will depend on your specific needs and goals. Researching and testing different tools is essential to find the most effective one for recovering abandoned carts in your industry.