Various strategies for reducing abandoned shopping carts
The international band of technologists, business experts and people of mystery known as the PollCart team got together to review how the PollCart system encourages additional customer engagement and additional sales. As you can imagine, security was deployed as crowds rushed the conference room to hear the insights. Since we didn’t want you to brave the alligator-filled moats around the vast and palatial PollCart headquarters, we thought we’d share it with you.
We took a look at this article from VWO.com about reducing shopping cart abandonment. VWO provided a very scientific and mathy formula for calculating a “cart abandonment rate,” or as we refer to it, CAR.
CAR = 1 – (Number of Orders Placed/Number of Shopping Carts Created)
That looks complicated and official. And probably peer reviewed and carved into a stone tablet. But what does this tell us?
Here is what is important and how it impacts online retailers:
- The abandonment rate in the home retail industry is almost 74%.
- The abandonment rate in the fashion industry is almost 75%.
- The abandonment rate in the travel industry is an astounding 81%.
You are a retailer. You put work into developing or curating your products. You spend a lot of time and money developing a website. You spend a lot of time and money on an SEO and marketing strategy. Customers show up. Customers choose products. Customers leave.
How do you get those customers to pull the trigger and buy when they are clearly interested enough in your products to put them in a shopping cart?
Customers abandon shopping carts primarily for encountering unexpected costs. Often, these costs involve shipping, but there can be tax and service fees. It may be difficult to get these customers back.
However, the next largest category of lost customers are those who were just browsing. Can they be tempted into buying? What if there were a mechanism for them to show their friends? Perhaps Social Commerce, where individuals online share their shopping experience, could induce additional sales, particularly additional sales that would otherwise be lost because they were just browsing.
PollCart gives these customers the ability to get their friends and family involved in the buying the process. It creates an event around the buying process and puts the buying decision in the hands of trusted people when the customer was ready to abandon the transaction.
PollCart gives the retailer another chance to sell when the sale was already lost! These are incremental sales for customers in whom you already have an investment! In addition, you have just reached one, two, five or more potential customers when one potential customer has already vouched for you and your products. This is word-of-mouth advertising and customer engagement gone viral!