E-commerce Cart Recovery: Turn Abandoned Carts into Sales ---- 5 min read
When you run an Online Brand, one of the most frustrating things you’ll have to handle is Shopping Cart Abandonment. Buyers seem interested enough in your products to add them to the cart, but they never finalize the purchase. But why does it happen? And what can you do to revert the situation and boost your e-commerce Conversion Rate? In this blog post, we will explore the correlation between the Abandoned Cart Rate and Recovered Revenue, discuss the reasons behind cart abandonment, and provide actionable solutions for E-commerce Cart Recovery.
Table of Contents
- Why is it important to Recover Abandoned Carts?
- 1. Revenue recovery
- 2. Insights into Customer Behavior
- 3. Cost-Effective Marketing
- 4. Competitive advantage
- Reasons behind Shopping Cart Abandonment
- How to Turn Your Abandoned Carts into Recovered Revenue
- 1. Transparent Pricing
- 2. Streamline Checkout
- 3. Security Assurance
- 4. Remarketing Campaigns
- 5. Personalization
- 6. Live Shopping
- The Journey to E-commerce Cart Recovery Begins
Why is it important to Recover Abandoned Carts?
As you may know, the Abandoned Cart Rate is a metric that tells you the percentage of online shopping carts that are initiated by customers but left incomplete without a successful purchase. In other words, it shows how many potential sales you missed out on, as customers added items to their carts but didn’t follow through with the checkout process.
It happens to all online businesses. According to Baymard Institute, the average e-commerce cart abandonment rate is 70.19%. This means that only three out of ten online shoppers who add products to their carts actually finalize their purchase.
If that’s a common issue, why should you keep track of your abandoned carts?
1. Revenue recovery
Perhaps the most obvious reason for minimizing abandoned carts is the potential for revenue recovery.
Every abandoned cart represents a missed sales opportunity. Baymard Institute estimates that, on average, fixing issues in your checkout flow can increase your e-commerce conversion rate by 35.26%.
By reaching out to customers who’ve abandoned their carts, you have a chance to persuade them to complete their purchase. This can translate directly into increased revenue for your business without the need to attract new customers.
2. Insights into Customer Behavior
Recovering abandoned carts isn’t just about making more sales; it’s also about understanding your customers better.
When you analyze the reasons behind cart abandonment, you gain valuable insights into customer behavior. Are they looking for more payment options? Do they want a faster checkout? Answers to these and more questions will allow you to make informed changes to your online store, improve customer experience, and ultimately boost your e-commerce conversion rate.
3. Cost-Effective Marketing
When a customer abandons their cart, it’s not necessarily the end of the road. It’s an opportunity to engage in personalized remarketing efforts. You can send email reminders to customers about their abandoned items, offer discounts or incentives to complete the purchase, or even provide related product recommendations.
These personalized approaches can be highly effective in bringing customers back to your site and converting abandoned carts into successful transactions.
Cart abandonment recovery is often more cost-effective than acquiring new customers. It’s generally less expensive to re-engage with customers who have already shown an interest in your products than to attract entirely new ones.
And because they already know your brand, they’re closer to the bottom of the sales funnel, which means you’ll most likely need fewer marketing actions to convince them to complete a purchase.
4. Competitive advantage
With millions of online stores out there, being proactive about recovering your E-commerce Cart Recovery can give you an edge.
Customers tend to appreciate businesses that go the extra mile to make their shopping experience smooth and convenient. If your competitors aren’t as determined to recover abandoned carts, you have an opportunity to stand out and build customer loyalty.
Reasons behind Shopping Cart Abandonment
To begin your revenue recovery mission, you’ll need to identify the reasons why customers abandon carts in your online store.
Here are some common problems that lead to cart abandonment:
- Unexpected costs: Nobody likes to find out they’ll have to pay more than they thought. When customers discover additional shipping costs or taxes at the checkout page, they may give up on their purchase.
- Complex checkout process: Issues like a lengthy checkout form can discourage shoppers from completing a purchase.
- Security concerns: If customers feel that their personal and payment information isn’t secure, they are more likely to abandon their carts. A poorly designed website, lack of reviews, or unclear return policies can also damage trust in your brand.
- Payment issues: Every customer has a preferred payment method. If they can’t find it as an option on your checkout page, they might walk away from the purchase.
How to Turn Your Abandoned Carts into Recovered Revenue
Now that we’ve covered the issues that could be affecting your Abandoned Cart Rate, let’s explore actionable solutions to turn abandoned carts into a powerful revenue source.
1. Transparent Pricing
One of the most common reasons for cart abandonment is unexpected costs at the checkout. If you want to improve your conversion rates, ensure your pricing is transparent from the start.
Clearly display product prices, shipping fees, taxes, and any additional charges early in the shopping process. When customers know exactly what to expect, they’re less likely to leave their carts due to hidden costs.
2. Streamline Checkout
A complicated and time-consuming checkout process is a major cart abandonment culprit.
Streamline your checkout process to make it as quick and user-friendly as possible. Implement features like guest checkout options, auto-fill forms, and progress indicators to simplify the experience.
Reducing the number of steps required to complete a purchase can significantly reduce your cart abandonment rates.
3. Security Assurance
Online security concerns are prevalent, especially during the checkout process. Reassure your customers by prominently displaying trust badges, SSL certificates, and secure payment options.
When you highlight your commitment to protecting their personal and financial information, customers feel confident in the security of their transactions and are more likely to follow through with their purchases.
4. Remarketing Campaigns
Remarketing campaigns are a powerful tool for recovering abandoned carts.
Use email and retargeting ads to remind customers about the items they left in their carts. Consider offering incentives like discounts, free shipping, or limited-time promotions to entice them back to your site. And don’t forget to craft compelling and personalized messages that resonate with your audience.
Personalization is all about making customers feel valued and engaged, which is why it’s a powerful strategy for cart abandonment recovery. You can leverage data from abandoned carts and customer profiles to personalize their shopping experience.
When you work on your remarketing campaigns, make sure to send tailored emails that address the specific products left in the cart, and use dynamic content on your website to recommend similar or complementary items. The more relevant your messaging, the higher the chances of improving your conversion rates.
6. Live Shopping
Live Shopping has emerged as a game-changing strategy for recovering revenue from abandoned carts. Live Shopping is the best way to provide real-life-like shopping experiences within Websites & Apps.
It offers Brands the ability to Demonstrate, Promote and ultimately Sell Products to a Live audience that can communicate in that Real-Time Experience.
There are many reasons why live-stream shopping influences potential customers. Here’s why live shopping works as a strategy for abandoned cart recovery:
- Real-time engagement: Live shopping allows you to engage with customers directly, helping them with product discovery, answering their questions, and building trust.
- Urgency and exclusivity: When you create a sense of urgency by offering limited-time discounts or exclusive deals during live sessions, customers feel more motivated to complete their purchases.
- Interactive experience: Shoppers can ask questions, get product recommendations, and see products in action, making it more likely for them to make a purchase.
- Social sharing: Live selling events can be shared on social media, attracting a wider audience and potentially reducing cart abandonment rates.
The Journey to E-commerce Cart Recovery Begins
Abandoned carts don’t have to spell the end of a potential sale. By implementing these strategies, you can turn abandoned carts into recovered revenue and enhance your e-commerce success.
Remember that a combination of transparency, user-friendliness, security, personalized marketing, and innovative approaches like live shopping can make a significant difference in your ability to recover those precious abandoned carts and boost your bottom line.