Top Ways to Recover Revenue from Cart Abandonment in E-commerce
A common issue facing online retailers is the loss of revenue from cart abandonment. Even though customers add items to their digital cart, they sometimes back out at the last minute without making a purchase. Cart abandonment is a significant source of potential revenue growth for most businesses, and it’s essential to leverage this dormant income.
In this beginner’s guide, we will look at the top ways to recover revenue from cart abandonment in e-commerce. We’ll provide actionable tactics that you can use to get those abandoned carts back to your e-commerce site.
Why Is Cart Abandonment a Problem in E-Commerce?
There are many ways a company can bleed money. From poor customer retention to wastage of resources, several daily activities in the workplace lead to inefficiencies that result in lost revenue. One of the quietest killers of potential profit is an item that often sits, out of sight and out of mind, on your e-commerce site. We’re talking about the infamous practice of customer cart abandonment.
Abandoned carts are precisely what they sound like. They’re the digital equivalent of filling your cart with items at a store, changing your mind about buying its contents, and walking out without making a purchase. It’s worth noting that, in this case, it’s even worse. It’s much easier to add items to a digital cart, close out a window, and never look back.
Your abandonment rate reflects the number of carts visitors generate on your site. The abandonment rate compares that to the number of purchases they complete. The average documented abandonment rate for online shopping carts as of August 2022 was 69.99%.
Why Do Customers Abandon Carts, and How Can You Reclaim That Revenue?
The good news is that cart abandonments don’t inherently mean the customer has decided not to patronize your brand. Often they occur due to reasons beyond the retailer’s control, such as slow delivery or excessive extra costs like shipping. In most cases, abandoned carts aren’t a burnt bridge. They’re simply a failure to complete a purchase. This naturally implies that, if handled correctly, following up on abandoned carts can be a legitimate and profitable source of revenue for an e-commerce company.
Let’s take a look at different strategies to reclaim that unrealized cash.
1. Send Abandoned Cart Emails
Sending an email is one of the most tried and true ways to follow up on an abandoned cart. You can send a personalized message to shoppers who are repeat buyers or older customers with an account or purchase history of your brand. On-site software can collect first-party cookies, allowing you to reach out to unknown website visitors who filled a cart and left it behind.
2. Fire off a Text Message
With nearly a third of all US internet users using mobile devices to purchase something every week in 2021, text messages can be a great alternative to an abandoned cart email. Sending an SMS notification can be an excellent way of drawing mobile shoppers back in.
3. Try Exit Popups
Exit intent popups appear when a user is about to leave a website. These popups trigger when someone is about to exit the site. They should include offers or information that can draw potential customers back to their carts, such as a discount or free shipping.
4. Optimize Your Checkout Process
Make sure to optimize your checkout process to reduce the number of abandoned carts. A long and complicated checkout process might drive customers away. Improving your checkout process can also help reduce the chances of abandoned carts in the first place.
In conclusion, cart abandonment is a standard issue in e-commerce, but it’s essential to view it as an opportunity to recover revenue. Leveraging alternative strategies like sending abandoned cart emails, firing off a text message, implementing exit popups, and optimizing your checkout process can make a significant difference. Keep in mind that a consumer who puts an item in a cart is one step closer to being sold. They’re more likely to buy than someone at the beginning of the customer journey. Always remember that reclaiming abandoned cart revenue should never be an afterthought.