How to Stop Losing Customers to Abandoned Carts

How to Stop Losing Customers to Abandoned Carts

Marcus Torrisi
. 16 Nov 2022 . 5 min read

Abandoned carts are the arch-enemy of e-commerce businesses. Having a major effect on potential profit, abandoned carts are a frustratingly common occurrence for any online store.

Shopify estimates that the e-commerce industry loses up to $18 billion each year in potential revenue, with only 31% of users returning to their cart.

There are two key elements in reducing the likelihood of your store being impacted by abandoned carts: reducing the chances of carts being abandoned in the first place, and bringing customers back to purchase if they’ve left.

Before we hit the strategy, let’s dive into why shoppers may abandon their carts.

E-commerce industry loses up to $18 billion each year in potential revenue from Abandoned Carts

Shopify

Why do customers abandon their carts?

According to the Baymard Institute, there are four main reasons carts are abandoned:

Extra costs are too high

Around 55% of cart abandonment comes from extra costs being too high (e.g. shipping, tax, service fees, etc.). Cost is a major factor in the decision-making process and with recent increases in the cost of living and competition, customers want to feel as though they are getting a good deal. 

Account is required

Customers want convenience and efficiency during their checkout process. While having an account can reduce time to checkout in the future, for first time customers, having to create an account can turn them away. If your store doesn’t have the ability to checkout as a guest, you might see upwards of 24% cart abandonment as a result.

Customers are saying that having to populate fields that are unnecessary and don’t relate to the purchase of the product is a cause of frustration. This can ultimately increase the likelihood of them abandoning their cart.

Checkout is too long

18% of customers abandon their carts if they feel the checkout process is too long or complicated.

Gathering customer information is important but there needs to be a balance between what is absolutely necessary to collect, and creating a simple, streamlined checkout experience.  On average, the checkout process includes 23 form.

They don’t trust the site

Having to put your credit or debit card details directly into a website that they have not purchased from before is a red flag for many shoppers. E-commerce stores without secure payment options such as PayPal or Shop Pay could see up to 17% of shoppers abandon their carts during their checkout process.

 

Now we know some of the main reasons why shoppers abandon their carts, let’s dive into how we can reduce the number of abandoned carts and make sure we aren’t losing profits.

How to reduce the number of abandoned carts

Offer incentives

Incentives are an easy way to get your customers to complete their purchases on the spot or to bring them back to checkout.

Here are my 3 favourite incentives:

1. Monetary discounts

Discounts come in many forms. Typically, you might see a $10 or 10% off coupon via a discount code but these aren’t the only ones. For example, you might get half price on a second item that you purchase or even a buy one get one free. Keep in mind, however, that most shoppers know that if they abandon their cart they will likely receive a discount offer. Use this method sparingly to prevent it becoming expected, causing shoppers to abandon their carts on purpose to get the deal.

2. Free shipping

There are many times when we have gone to purchase on a site and been baffled by the cost of shipping that has been added to our cart. A free shipping coupon code is just the thing that can turn a cart abandoner into a sale. If you already have free shipping incentives when customers purchase a certain $ amount, perhaps you can offer discounted express or next-day delivery as a way to entice them back.

3. Thank you gift

Offering a freebie to a customer can be an effective way of getting them to return. This can be anything from free samples to tote bags, or a free gift with purchase. Make sure that the product you are offering doesn’t ultimately affect the margins of the sales but has enough value for the customer.

 

Have a seamless checkout process

Customers want to take the least amount of clicks to checkout. Making sure that the checkout process is as easy as possible is key. Plugins like Shop Pay allow customers to have all their details pre-filled during their checkout process, allowing for a quick sale. Using the Shop Pay service allows customers to increase the speed of their checkout by 4x and, according to Shopify, can be proven to increase conversion rates by upwards of 36%.

Even if you aren’t on Shopify, check out your e-commerce platform’s app marketplace to find a plugin that will help speed up your checkout process. Our sister agency Iterate also has an article about what not to do in your checkout funnel to ensure that your checkout is optimised, so you don’t add to the number of abandoned carts you have!

 

Use a well-known e-commerce platform

The user experience when shopping online is the starting point of ensuring that the customer completes their purchase. Using a well-known platform such as Shopify will allow the customer to have a positive experience regardless of device or location.

While a custom design has the most potential to really deliver on user experience, if that is not a viable option for your business, most e-commerce platforms have a large range of easy-to-use templates and designs that are user-friendly and will complement your store’s appearance and brand dramatically. These templates are likely to be user-friendly, intuitive and familiar to the customer. This will likely result in the customer having a positive experience with your store and will have a higher chance of converting.

 

Ensure your abandoned cart email automation is optimised and set

Email automation might just be the most crucial way to reduce the number of abandoned carts your business gets. Using an email marketing tool allows you to create simple but effective abandoned cart emails to target your customers after they have left your site. You have the ability to customise send times and the content of these emails so it’s tailored to your brand and brand messaging.

Here are our top five best practice tips for your email automation:

  • Products left in the cart should be front and centre
  • Clear calls to action should be placed as high as possible and repeated throughout the email
  • Use dynamic content to show live, up-to-date information where possible (Name, total cart amount etc.)
  • Send more than one email to increase the chances of conversion
  • Show reviews and testimonials of that or similar products

Losing customers to abandoned carts can significantly impact your business’ potential revenue. However, as we have outlined, there are many ways you can reduce the number of times it happens.

Keep in mind that you won’t be able to win back every abandoned cart that your shop has. It happens all the time in e-commerce stores and even at in-person physical stores with ‘window shoppers’ and the like but you can reduce that percentage. You could also try boosting your e-commerce sales in other ways or implement tactics for building loyalty.

 

Reach out to us if you want more information about this topic!

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How Email Marketing Will Change With iOS 15 Updates

Marcus Torrisi
. 18 Nov 2021 . 4 min read

In typical Apple fashion, a new iOS update has resulted in a marketing headache, especially for email marketers! With iOS 15 released in late September, the metrics used for email marketing will change and affect the way we report on emails.

We used to be able to attribute a high open rate to either an enticing subject line or sending at the perfect time of day. Low open rates meant that our contact segmentation wasn’t accurate enough, or just purely our list wasn’t or hasn’t been engaged enough. Now, with iOS 15, these open rates will be skewed and not as accurate as they used to be. This is due to Apple’s new “Mail Privacy Protection”.

Once a user updates their device and opens the native Mail app, they will be prompted with a pop up which allows users to either “Protect Mail Activity” or to not protect. If they choose to protect their mail activity, then Apple has the ability to mask IP Addresses and block third parties (such as Hubspot, Klaviyo, and MailChimp) from tracking email opens and other IP data. The Mail Privacy Protection can be turned on and off in Settings > Mail.

Another feature that has been released is the “Hide My Email” cloaking feature, which comes with iCloud+. This feature allows users to give sites a “fake” email address. This feature will still forward the email to land in your inbox, but the “fake” email address will act as a middle man, allowing users’ real email addresses to be more protected than they may already be.

How does it work?

Litmus provides an analysis of how it works form the technical side:

  1. When a user starts up their Apple Mail App, this will trigger a download of the email images to their device from their email host.
  2. In intervals, Apple will download all the images to Apples Privacy Cache. This download will be by a proxy with an IP address, which is assigned to the general location of the user.
  3. Apple’s caching process will require them to request the content and images from the email service provider, which includes requesting the open tracking pixel – this is what makes the ESP assume that the email has been opened by the user.
  4. When the user actually opens the email is when all the content will get downloaded and display the images, which will come from the Apple Cache, not the ESP or webshot server.

Very techy, I know! What this really means is that Apple will open the email for you and then once you actually intend to view it by clicking on the email, it will show the content that was sent.

And you need to be prepared, as according to Litmas:

The top 3 email clients are Apple iPhone (38.2%), Gmail (35.6%), and Apple Mail (10.4%), with 90% of all iPhone users set to have installed the update in the next 6 months.

Here are our 4 tips on how to combat the change:

1. Change with metrics you focus on

With open rate data no longer being as accurate as it once was, it is crucial to know which metrics to report on instead, to best understand email campaign performance. Shifting to the world of click rates and conversion rates on emails will become the new norm. This will be one of the only ways you will be able to tell if users are engaging with your email content and whether they are converting from them.

2. Try to collect as much information as possible organically

Segmentation will also be affected by iOS 15. Without the ability to accurately track customer data, such as a location of where the email was opened, trying to get customers and users to voluntarily give you this data is the best way to retrieve it. This might be collected from forms on the website through simple fields upon a purchase, or when signing up for marketing communications. A field asking for the user’s postcode will be able to be used for segmentation on location, which can also lead to calculating when the best time is to send the email based on the recipient’s time zone.

3. Reconfigure automated flows

Leveraging automation to enhance email marketing reduced the manual work that we had to do and we thought it worked perfectly – but maybe not so much. Depending on what type of automation you are using, if the automation relies on open rates to continue the customer or user on the journey, it may still continue to deliver content when they actually haven’t opened it. Setting goals for contacts who are enrolled in these automations might be a way out. Using goals like a click of a CTA or a conversion will allow them to be unenrolled and stop them from getting a load of irrelevant emails.

4. Use SMS marketing

Could this be the gateway out? Hubspot says 3.8 billion people have a mobile device and 48 million of those opted in to SMS marketing. With a 98% open rate for SMS, it is a no brainer to use this alternative marketing option. It could be triggered by a customer action or sent out on a special worldwide date, like Christmas or Black Friday.

So, what now?

iOS 15 privacy changes aren’t the first and certainly won’t be the last changes from Apple. As the digital marketing space continues to grow, curveballs will still get thrown at us with privacy and algorithm changes – it’s inevitable. For your email marketing, try to implement some of these changes to help your efforts not go astray.

Need help with the iOS 15 updates?

Chat to our team of email marketing experts today. 

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