Have you ever wondered why customers abandon online shopping carts?
If you were shopping in a lingerie store, you likely wouldn’t just set your items down and walk away. But this type of thing happens often during the online shopping process. In fact, 77% of online carts were abandoned in 2016. That’s a lot of missed opportunity for lingerie business owners! Let’s discuss what cart abandonment is and how to reduce it.
What is cart abandonment?
So, what is cart abandonment? Cart abandonment is when a customer adds items to their online shopping cart, but doesn’t follow through with the purchase. As customers browse your store online, they face many distractions – both online and offline. But cart abandonment isn’t only caused by distractions. There could be discrepancies within your online store that increase the cart abandonment rate. (We’ll cover how to fix those discrepancies later in this article.)
How to calculate cart abandonment rate
The cart abandonment rate is the percentage of online users that create a shopping cart, but don’t proceed with purchasing the items. In other words, the user abandoned the cart. To calculate the cart abandonment rate, use this formula:
1 – (# completed online purchases / # shopping carts created) X 100 = cart abandonment rate
So, let’s say in one month, your lingerie store had 50 completed purchases online and 200 shopping carts created online. This would result in a 75% cart abandonment rate, and your formula would look like this:
1 – (50 / 200) X 100 = 75%
Tips for reducing the cart abandonment rate
The setup of your online store can affect your cart abandonment rate – both negatively and positively. Here are 9 tips for reducing cart abandonment:
1. Use a trusted partner for processing private information.
When a customer makes an online purchase, they must provide private information, such as a residential address or a credit card number. Because this information is so delicate, users won’t provide it unless they trust how the information will be held and managed. It’s important to use trusted partners during the checkout process – such as PayPal or McAfee. When the user sees these trusted logos displayed at checkout, they’ll feel more comfortable providing sensitive information.
2. Show product thumbnails in the shopping cart.
It’s possible a customer can forget which items are in their cart as they shop. It’s a good idea to include small product thumbnails of their selected items at checkout. So, when they arrive at checkout, they are quickly reminded that they need the items and should proceed.
3. Offer multiple payment options.
It’s important to offer multiple payment options for users to conveniently check-out. Customers may not always have their credit card handy, and may want to purchase using their PayPal account. Or vice versa.
4. Include a call-to-action on checkout pages.
A customer may have added an item to their cart, but it doesn’t mean they don’t need a nudge to proceed. After all, a marketer’s job is not over until the purchase has been made. Including a call-to-action (CTA) on the checkout page will prompt users to continue with the purchasing process.
5. Offer a checkout option for guests.
If you’re online store requires customers to make an account before placing an order, you could be missing out on sales. Creating a “guest check-out” option provides a quicker checkout method for irregular users.
6. Make it easy to check-out.
Making it easy for customers to check-out ensures they don’t become frustrated and abandon the cart. Try to constrict your check-out process to only a few clicks or pages. Better yet, show a progress indicator that indicates how many steps are left in the check-out process. (e.g. Review cart – shipping – payment – place order)
7. Make policies clear.
As a lingerie store owner, you must be clear about return policies online. You want to avoid a customer adding an item to their cart, then realizing they aren’t comfortable with the return or exchange policy.
8. Don’t hide costs, like taxes or shipping.
If a customer gets to the last step of check-out, and their total suddenly increases by $15 due to taxes and shipping, they may abandon the cart. To combat this, display additional fees, like taxes and shipping, early in the check-out process so there are no surprises.
9. Reduce page loading times.
Today’s consumers are not very patient. If they can’t get your webpages to load quickly, they could opt to buy a similar product from a competitor. Ensure your pages load quickly so the customer remains engaged and focused.
Understanding what’s causing your cart abandonment rate will help you create a strategy to combat those losses. If you can decrease your rate by even 15%, that’s 15% more orders for your lingerie business.