Online shoppers sometimes fill their online shopping cart but ditch it without completing the purchase. This is known as a deserted or abandoned cart. This causes a potential loss in revenue for the businesses and significantly hampers their overall performance. Hence, online retailers employ various strategies, such as email reminders and retargeting ads, to win back lost customers and encourage them to complete their purchases.
Common Reasons for Abandoned Cart
Cart abandonment is a major hurdle for ecommerce businesses, but understanding the reasons behind them can help you implement solutions and recover lost sales. Here's a breakdown of the most common reasons why shoppers leave their carts behind.
High Additional Costs
Unexpected shipping fees, taxes, or other charges added at the time of checkout can scare shoppers away.
Complex Checkout Process
A long or complicated checkout process can confuse or frustrate the customer, leading to abandoned carts.
Forced Account Creation
Being forced to create an account can deter customers who just want to buy something quickly.
Security Concerns
Customers may hesitate to enter their payment or any other personal information if a website seems deceitful.
Limited Payment Options
If the customer is not able to pay through their preferred payment method, they lead to abandon the cart.
Saving for Later
There are times when the shopper adds items to their cart with the intention of buying them later.
Comparison Shopping
Some shoppers add items to compare prices or products with other stores across different websites before buying.
Unsatisfactory Return Policies
Not providing clear and easy-to-understand return policies can make people hesitant to make a purchase.
Website Performance Issue
Slow loading, crashes, or any other technical glitches can prompt shoppers to abandon their carts out of frustration.
Abandoned Cart Recovery
Online stores attract a huge crowd of customers, but not all of them convert into sales. This is where abandoned cart recovery swoops in. It is a strategy employed by online businesses to win back potential customers who have abandoned their shopping carts. After tracking the abandoned carts, a friendly reminder is sent. These reminders often include a link that directs to the cart.
Abandoned cart recovery is a strategy that benefits all. It can be a helpful prompt for customers in case they get sidetracked. For businesses, they can reclaim their lost sales. Additionally, by understanding the reason for abandoned carts, companies can identify and fix any pain points, making the overall shopping experience smoother and increasing the chances of conversion.
While traditional e-commerce often leaves customers navigating the buying journey alone, here's how SquadStack's Assisted Sales Approach tackles cart abandonment, helping you recover lost sales and boost conversions.
Trained & Tech-Enabled Telecallers
SquadStack has a large network of 10K+ highly skilled telecallers capable of driving positive results for our clients. These telecallers are carefully screened and vetted. They undergo rigorous mock calls and evaluation processes. We provide them with all the necessary information, FAQs, battle cards, guided scripts, and built-in translation options, ensuring they are well-equipped for any conversation. Additionally, we provide targeted training to each agent based on their performance insights.
Image: Trained and Tech-Enabled Telecallers of SquadStack
Screen-Sharing for Revolutionary Sales
SquadStack integrates screen-sharing within the WebApp. It significantly boosts the effectiveness of assisted sales by enabling virtual interactions. With screen sharing, telecallers can instantly share their screen with the customer, showcasing a live product demo or walkthrough. It allows the agents to utilize screen-sharing to provide technical support and assist customers in navigating issues. SquadStack’s screen-sharing feature fosters a sense of trust by transforming a voice-based experience into a virtual one.
Image: Screen-Sharing for Revolutionary Sales
AI-Powered Call Quality Analysis
SquadStack’s AI-powered call quality analysis goes beyond simple call monitoring. We leverage AI to analyze 15% of your calls across 23 key quality parameters. We provide a comprehensive view of your campaign and team's performance, along with valuable insights like call quality scores and audit parameters, in order to help you identify areas of improvement and make data-driven decisions. Moreover, our smart sampling rate of 12% surpasses the industry standard of 1-2%. We leverage AI.
SquadStack has helped one of the leading D2C personal care brands drive more revenue from their abandoned cart leads and achieve 8x ROI through our telecalling expertise.
Abandoned cart rate shows the percentage of shopping sessions on your website where customers add items to their cart but leave without completing the purchase. It's a key metric for e-commerce businesses as it reflects potential lost sales. The abandoned cart rate is calculated by using the formula given below:
Abandoned Cart Rate = (1 - Conversion Rate) x 100%
What is a Good Abandoned Cart Recovery Rate?
Above 10%
If your abandoned cart recovery is above 10%, there is always room for improvement. However, it is considered a decent recovery rate by many standards.
Above 20%
A recovery rate above 20% is remarkable. This signifies your strategies are effective and you are winning back a significant portion of your abandoned sales.
Points to remember when calculating the abandoned cart recovery rate:
Research benchmarks specific to your industry to get a more accurate picture of your performance.
Lower average order values = lower recovery rates.
Larger companies have the ability to implement better strategies, leading to higher recovery rates.
Strategies to Overcome Abandoned Carts
There are many effective strategies to tackle abandoned carts and turn them into completed sales. Let us explore some key tactics to consider:
1. Reduce Friction in the Checkout Process
By eliminating unnecessary steps like forced account creation and complex forms, you create a smooth and user-friendly experience that encourages customers to complete their purchases and overcome the hurdle of cart abandonment.
2. Offer Transparent Pricing
Customers appreciate predictability and a clear understanding of the total cost associated with their purchase. When they encounter unexpected charges, it annoys them. Hence, you must clearly display fees throughout the checkout process.
3. Save Carts for Later
It caters to indecisive shoppers, giving them more control over their shopping experience. It allows them to stay engaged with your products and potentially convert them into paying customers later on.
4. Send Timely Reminders
A well-timed, personalized email or text message acts as a gentle nudge, reminding the customers about their abandoned carts. This can help address any concerns and prompt them to complete the purchase.
5. Highlight Scarcity & Social Proof
Scarcity creates urgency, pushing hesitant customers to act quickly, while social proof builds trust and reduces perceived risk. By strategically using these, you can effectively convert them into paying customers.
6. Offer Multiple Payment Options
By providing multiple secure and convenient payment options, you remove a significant hurdle in the checkout process and encourage customers to complete their purchases, ultimately reducing cart abandonment rates and boosting your sales.
7. Exit-Intent Pop-up
Exit-intent popups are a targeted strategy to recapture sales lost to abandoned carts. These pop-ups appear on a user's screen right before they're about to exit your website, acting as a final reminder.
8. Live Chat Support
Live chat allows customers to connect with a customer service representative instantly, eliminating the need for frustrating back-and-forth emails or phone calls. This creates a positive buying experience for your customer and increases CSAT.
9. Retargeting Ads
Retargeting or remarketing ads are designed to reach out to customers and remind them of their abandoned carts. It nudges them, rekindles their interest, and incentivizes them to return and convert those deserted carts into sales.
10. Analyze Abandonment Data
Analyzing abandonment data empowers businesses with valuable insights into customer behavior and the reasons behind cart abandonment. This helps identify and address specific pain points and personalize the recovery efforts.
11. Offer Guest Checkouts & Free Shipping
Offering guest checkout and free shipping work together to tackle abandoned carts by removing two major hurdles customers often face during checkout. It reduces friction by eliminating unnecessary account creation and increases customer satisfaction.
12. Mobile Optimization
By prioritizing mobile optimization, you create a user-friendly and efficient shopping experience specifically for mobile users, the core demographic of online shopping today.
How SquadStack Helps in Overcoming Abandoned Carts
Traditional methods of combating cart abandonment, like automated emails and website tweaks, can be effective, but they lack a human touch. SquadStack's innovative approach goes beyond generic strategies, offering a personalized solution to recapture those almost-lost sales and convert abandoned carts into happy customers.
Voice of Customers
Our algorithms analyze interactions like calls, texts, and social media posts to understand customer experience and generate insights.
A/B Testing
SquadStack allows you to A/B test different elements to figure out the best day, time, and channel for reachout.
Prioritize High-Intent Leads
We utilize AI-powered lead scoring and automation to prioritize high-intent leads and ensure no leads are left out or overlooked.
System-Driven Outreach
SquadStack’s system-driven outreach ensures timely follow-ups and 100% data entry. Additionally, we facilitate reachout through various channels, such as SMS, WhatsApp, etc.
Data Security
SquadStack secures customer data with encryption, access controls, and spam filters. We provide 100% script compliance and have built-in PII masking.
Complete Data Visibility
SquadStack offers robust analytics through an easy-to-use dashboard that gives data visibility and transparency into every step of the campaign.
Image: Abandoned Cart Use Case
FAQ's
What is cart abandonment or abandoned cart?
Cart abandonment occurs when a website visitor adds items to their online shopping cart but exits the website before completing the purchase.
What causes abandoned carts?
There are many reasons, including unexpected shipping costs, lengthy checkout processes, concerns about security, or simply getting distracted.
What are some abandoned cart recovery strategies?
Here are a few ideas: offer free shipping or clear cost displays, streamline the checkout process, provide guest checkout options, save cart contents for later retrieval, and send targeted abandoned cart emails.
What should be included in an abandoned cart email?
Highlight the abandoned items, personalize the message using customer data, offer a discount or incentive to complete the purchase, make the email visually appealing, and include a clear call to action button.
What are some legal considerations for abandoned cart emails?
Complying with the existing regulations regarding commercial electronic communications is crucial. The Information Technology Act (2000) and the Telecom Regulatory Authority of India (TRAI) regulations require consent for sending marketing messages.
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