Only 1 in 4 retail customers complete their online purchases – here’s why…
As the abandonment of online shopping carts becomes an increasing issue for online retailers, new research has found that just a quarter of customers complete their online purchases. But what’s stopping them from going through with the sale, and what can companies do to persuade them to click that ‘Confirm Order’ button?
The Business2Community website reported on a study conducted by Baymard.
Researchers found that the average rate of shopping cart abandonment is 68.07%, meaning that roughly three-quarters of shoppers fail to complete their purchase. So why is this happening? As might be expected, price seems to be the main factor for customers exiting the purchasing process. Further research by Statistia found that more than half (56%) of online shoppers said the main reason they abandoned their shopping cart was being met with unexpected costs.
The second biggest reason was that they were just browsing (37%), followed by 36% who said they had found a better price on another website.
Other reasons were to do with the website itself. A respective 25% and 24% said that the website navigation was too complicated or that the website crashed, while 21% felt the buying process was taking too long. This suggests that online shoppers have little patience when it comes to making a purchase – they want to get in and out as quickly and efficiently as possible.
Thankfully, there are certain measures that retailers can take to improve conversion rates and reduce shopping cart abandonment:
1. Personal experiences with data
Obtain key insights into shopper behaviour and habits by collecting consumer data each time they visit your website or interact with your brand. This can be used to created relevant, contextual and personalised messages to improve the customer’s shopping experience; what’s more, you can retarget them if and when they abandon their cart. According to Salesforce research, most customers are happy for companies to collect their data if it means better customer service, more relevant offers and faster checkout times.
2. Use retargeting
Retargeting your customers though specialised ads and emails can encourage them to return. A VWO study discovered that more than half (54%) of shoppers would be ‘very likely’ to buy an abandoned item it was offered to them at a discount price; this figure rose to almost three-quarters (72%) for shoppers aged 25-34. Free shipping is also a great incentive – according to research by Compete, it boosts conversion rates and encourages 93% of shoppers to buy more than they originally intended.
3. Target in real-time with automated marketing
Marketing automation platforms allow you to create automated customer journeys, ensuring that the optimum messages are delivered through the most relevant channels for your customers and prospects. By delivering the right content at the right time, you’ll keep moving your customers seamlessly along the sales funnel, boosting conversion rates and lifetime value along the way.
For more help improving your conversion rates, contact Fireworx today.