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Strategies for Reducing Cart Abandonment Rates
Cart abandonment is a common issue that online retailers face. It occurs when potential customers add items to their online shopping cart, but exit without completing the purchase. According to a study by Baymard Institute, the average cart abandonment rate is approximately 69.57%. This means that for every 100 potential customers, 70 are leaving without buying anything. This article will explore five effective strategies to reduce cart abandonment rates and increase conversions. These strategies include optimizing the checkout process, offering free shipping, using remarketing techniques, providing multiple payment options, and building trust with customers.
1. Optimizing the Checkout Process
One of the main reasons for cart abandonment is a complicated or lengthy checkout process. According to a study by Statista, 21% of online shoppers abandon their carts due to a long or complicated checkout process. Therefore, simplifying and streamlining the checkout process can significantly reduce cart abandonment rates.
One way to optimize the checkout process is by reducing the number of steps required to complete a purchase. For instance, ASOS, a popular online fashion retailer, reduced their cart abandonment rate by 50% by simplifying their checkout process from five steps to one single page.
Another effective strategy is to offer a guest checkout option. Many customers do not want to create an account just to make a purchase. According to a study by Baymard Institute, 34% of customers abandoned their cart because the site wanted them to create an account. By offering a guest checkout option, you can cater to these customers and reduce cart abandonment rates.
2. Offering Free Shipping
Shipping costs are another major reason for cart abandonment. A study by Statista found that 63% of online shoppers abandoned their carts due to high extra costs, including shipping fees. Therefore, offering free shipping can be a powerful strategy to reduce cart abandonment rates.
Amazon is a prime example of a company that has successfully used free shipping to reduce cart abandonment rates. By offering free shipping for orders over a certain amount, Amazon encourages customers to add more items to their cart to qualify for free shipping, thereby reducing the likelihood of cart abandonment.
However, offering free shipping is not always feasible for all businesses, especially small businesses with tight margins. In such cases, businesses can consider offering free shipping over a certain order value, or during specific promotional periods.
3. Using Remarketing Techniques
Remarketing is a powerful strategy to bring back customers who have abandoned their carts. Remarketing involves targeting customers who have shown interest in your products but did not complete the purchase, with personalized ads to encourage them to return and complete their purchase.
Email remarketing is one of the most effective remarketing techniques. According to a study by SaleCycle, nearly half of all cart abandonment emails are opened and over a third of these lead to purchases. An effective cart abandonment email should include a reminder of the items left in the cart, a clear call-to-action, and possibly a special offer or discount to incentivize the purchase.
Another effective remarketing technique is retargeting ads. These are personalized ads that are displayed to customers on other websites or social media platforms, reminding them of the items they left in their cart. According to a study by Criteo, retargeting ads can bring back 26% of abandoned shoppers to complete their purchase.
4. Providing Multiple Payment Options
Lack of preferred payment options is another common reason for cart abandonment. According to a study by Baymard Institute, 8% of online shoppers abandon their carts if their preferred payment option is not available. Therefore, offering multiple payment options can help reduce cart abandonment rates.
Popular online retailer Zalando reduced their cart abandonment rate by 2% by adding more local payment options. Similarly, ASOS reduced their cart abandonment rate by 50% by offering a wide range of payment options, including credit card, PayPal, and Apple Pay.
It’s important to offer the payment options that your target customers prefer. For instance, if your target customers are millennials, you might want to offer digital wallet options like Apple Pay or Google Pay. If your target customers are from a specific country, you might want to offer local payment options popular in that country.
5. Building Trust with Customers
Trust is a crucial factor in online shopping. Many customers abandon their carts due to concerns about payment security or the credibility of the online store. Therefore, building trust with customers can significantly reduce cart abandonment rates.
One way to build trust is by displaying security badges on your website. A study by Baymard Institute found that 17% of online shoppers abandon their carts due to concerns about payment security. By displaying security badges, you can reassure customers that their payment information is safe.
Another way to build trust is by displaying customer reviews and ratings. According to a study by BrightLocal, 88% of consumers trust online reviews as much as personal recommendations. By displaying positive customer reviews and ratings, you can build trust and credibility with potential customers, thereby reducing the likelihood of cart abandonment.
Conclusion
Reducing cart abandonment rates is crucial for increasing conversions and revenue for online retailers. By optimizing the checkout process, offering free shipping, using remarketing techniques, providing multiple payment options, and building trust with customers, businesses can significantly reduce cart abandonment rates and increase conversions. However, it’s important to continuously test and optimize these strategies to find what works best for your specific business and target customers.
