Understanding why consumers abandon shopping carts is one of the biggest challenges facing the retailers and has been causing a great deal of pain for them. Quantifying this pain, BI Intelligence estimates, approximately $4 trillion worth of merchandise is abandoned in online shopping carts every year, and about 63% of that is potentially recoverable by savvy e-commerce retailers.
Shopping Cart Abandonment
In online retail, shopping cart abandonment refers to the action where prospective consumers add items in their online shopping carts, but later exit without completing the purchase.
But Why Do Shoppers Abandon Their Shopping Carts?
The reasons for cart abandonment vary across different sector. According to a survey, for the retail sector, the most common reasons for cart abandonment are:
- ‘Just Looking’ I.E. Not Ready to Buy – 34%
- Had an Issue with Shipping – 23%
- Want to Compare Prices – 18%
- Decided to Buy In-Store – 15%
- Lack of Payment Options – 6%
- Experienced A Technical Issue – 4%
Tactic Used By Retailers To Market To Shopping Cart Abandoners
The digital shopping cart abandonment rate is 74.3% worldwide. And retailers have no option other than to incessantly attack the abandonment problem with different tactics. The most effective tactics used by retail merchants to market to shopping cart abandoners are:
- Ad Retargeting – This tactic works by keeping a track of the visitors who visit a retailer’s website and display the retargeting ads to them when they visit other sites online.
- Live Chat – Chatting live with a customer enables the retailer to understand what is preventing them from a purchase and offer a timely solution. This tactic makes a customer stay and close the sale.
- Pop-Up Window Reminder – In case a visitor tries to leave the cart page without completing purchase, retailers display them a pop-up window reminding them about their unfinished shopping.
- Email Recovery Campaigns – Set up personalized emails which are sent to the shoppers if they leave items added to their cart and exit. Such emails include pictures of the selected item, reviews of the product, guarantee and refund policy info and a strong call-to-action to get them back to their site.
DMP – Giving Data Direction
The increasing number of internet users and the rapid rise in connected devices, combined with the fact that many offline retail services have now moved online, makes one thing clear, i.e. the data available on the internet is now bigger than ever before.
Referring to cart abandonment, the massive volumes of data circling the internet demand the need to centralize it, because here the missing link between e-commerce sites and stemming cart abandonment is siloed customer data.
That’s exactly where a data-management platform (DMP) comes in. E-commerce sites can get back some of the 50% – 70% of sales lost through cart abandonment by using tactics like personalized remarketing or retargeting, which can be easly implemented with the help of a Data Management Platform.
● Personalized Remarketing or Retargeting
This is a highly powerful advertising and marketing technique used by online retailers to increase their revenues. Gone are the days when basic methods of remarketing were effective. Today’s consumer expect highly personalized buying experience, and personalized remarketing with DMP ensures just that.
DMP allows the retailers to collect first-party data about the shopping cart abandoners. It further enriches that information with third-party data and offline data powering them to run highly personalized remarketing campaigns to target them effectually.
● Single Customer View (SCV)
In the world of innumerable connected devices, the consumers expect the retailers to provide them consistent and seamless experience across all platforms and channels. But different devices also mean multiple identities. Therefore, a DMP allows the retailers to identify the user irrespective of the platform (online/offline) as one single identity by creating a Single Customer View.
● Discover Trends
Analytics has always played a vital role in understanding how consumers behave online. DMPs collect and analyze data from a range of sources, empowering the retailers to determine new trends, identify and fix conversion drop-offs, and better understand their consumer and behavior.
Today, the biggest challenge for retailers is not lack of data, but getting all of their siloed data in a single place and DMPs solve this issue in the most operative manner.
Increasing rates of shopping cart abandonment is a warning sign for retailers who are under continuous pressure to derive more out of their marketing spends. Therefore, it becomes even more necessary to have the right tools and techniques in place, which can get more shoppers to complete the checkout process on the first go.
To know how a DMP can help tackle the problem of shopping cart abandonment, schedule a free demo with Cuberoot.