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With 4.6 trillion dollars left unpurchased due to cart abandonment each year, it’s a real pain point for companies as they are losing a hefty amount of potential profit. Magento has identified the top four reasons for cart abandonment as:
These reasons, combined with small mobile and tablet screens that make checkout even more difficult, lead to customer irritation and cart desertion. Since cart abandonment is prevalent, Magento has shared solutions to help decrease the amount of dollars left unspent.
As with any complex issue, there’s never just one solution. Below, we explore eight solutions that can help to streamline your company’s website and create a more user-friendly checkout experience.
Surprises aren’t fun; be upfront with all costs so your customers don’t feel caught off guard or cheated at checkout. Using Magento Commerce and the integrated vertex tax solution tool, customers can enter their zip code to see an accurate sales tax amount and their total price after promotional discounts. Displaying all shipping fees and the full shipping price at the bottom of the cart is also important as customer are particularly sensitive to hidden shipping costs. Clearly displaying fees eliminates surprise and creates a transparent company-customer relationship.
Different customers have different needs: some need their products shipped immediately while others have no time requirements. Offering a range of shipping options surrounding carrier, time frame, and price will allow your customer to choose exactly what they are looking for. Companies can easily compare and analyze various carriers’ rates by using Magento Shipping, giving their customers the best deal. Another shipping option is to offer free shipping if a monetary amount is reached. In fact, 65% of shoppers would increase their order size if it included free premium shipping. With shipping fees being the biggest reason for abandonment, it’s imperative to offer various shipping options.
The more steps between add-to-cart and final order, the higher chance for cart abandonment. Instant Purchase allows customers to save information like payment and shipping address for future use. This gives customers an Amazon-like experience that is quick and simple. Taking out extra steps also helps boost impulse and mobile buys as there is less time for customers to question their purchase. PayPal and Amazon Pay are two platforms companies can use that will keep their customers payment information safely stored.
Flexibility shows your willingness to work with your customers and dedication to providing them the best experience. On average, 79% of customers using credit solutions made 79% more purchases in the last 12 months than other customers. Magento provides PayPal and Klara as two tools to offer customers flexible payment terms.
Klara is an application that allows customers to split payments as well as make the first payment up to 30 days after the item has been delivered. PayPal similarly allows a layaway-type option as you can postpone payment up to six months with no interest on purchases of $99 or more. Studies have found that 68% of PayPal users have transactions that are 68% larger than the average customer. Both applications occur within the merchant site. This is extremely helpful for companies with expensive, luxury items that would be hard for everyday customers to buy outright.
This is your website, so you should own everything that’s on it. While checking out can be a seemingly universal process, every company’s method is slightly different. Companies use different widgets and tools to integrate programs that will help streamline the process and improve customer experience. While integrating these tools, resist sending your customers to other websites. Instead, use layover screens so you don’t send your customers to another site. You want their full attention on your merchandise.
With mobile's growth in popularity and its continuous rise, it is key to cater to all mobile needs. With the lowest conversion rate compared to tablets and desktops at 1.7% and a staggering 86% cart abandonment rate, the opportunity to improve mobile sales is huge. Companies can cut abandonment rates by designing websites and checkout processes that are tailored to mobile devices. Magento 2 is a mobile-centric program offering solutions to help simplify the checkout process. Specifically, answering payment and shipping forms with previously inserted information to cut down the checkout time and prevent the opportunity for customer frustration to arise.
Analytics are the indirect voices of your customers, so listen to them. The customer report building tool gives you the ability to create over 100 different dashboards to measure an assortment of user characteristics. Combining these dashboards with Google Analytics can be helpful in showing your company where the holes are in your checkout process.
The more options available, the more chances for customization. Providing different fulfillment options can help customers create a tailor-made shopping experience that best suits their needs. Research shows that 61% of customers want the option to order online and pick-up in stores. While this may cut out shipping costs for customers it also gives your company a huge opportunity to increase dollars per order. Over 40% of people will add more to their order when they pick it up in store, and shoppers who buy on multiple channels have a 30% higher lifetime value. Magento Order Management provides this fulfillment capability and globally streamlines all company information from inventory to suppliers, and manufacturers to distribution centers to store fronts. This generates accurate product information for a speedy online order and in-store pick up, or the traditional online order that is then shipped.
Try as we might, cart abandonment will always exist in the world of eCommerce. However, Magento offers solutions to help decrease your abandonment rate, which will help increase sales and positive customer relationships. Leveraging these solutions will create a customer optimized website that results in higher traffic, conversion rates and sales, and less abandoned carts.