4 Simple Steps to Reduce Cart Abandonment and Increase Online Sales

4 Simple Steps to Reduce Cart Abandonment and Increase Online Sales

You spent the money on marketing and created great ads, you attracted the shoppers into your eCommerce, and they came. They read, clicked, surfed and compared, but after promising signs of closing a sale, your potential customers left your site. They turned away. Why?

In 2018, the online shopping industry is booming. This prosperity has caused a flood of new small businesses coming to the market in an attempt to get their piece of the pie. Unlike in the past, technology in this space has progressed immensely, and it is now easier than ever to integrate your website, online shopping carts, inventory management systems and CRM, into a single solution to give a true omni-channel experience.

Furthermore, products like SuiteSuccess by NetSuite, are helping small retailers go live with industry-leading solutions quickly and providing them with a platform to build their businesses and grow their customer bases. The key performance indicator driving online businesses are sales. Simple, yet essential things need to be considered to ensure that when a customer reaches your shopping cart, you are giving them the best possible opportunity to convert and get the sale closed.

Why is cart abandonment an issue all online retailers should be concerned about?

In 2017, SaleCycle conducted a study where they consolidated statistics from over 500 global brands and discovered that the average number of shoppers leaving before purchase is an average of about 70% which is huge! Think of all the effort it took to get the shoppers there, and then they leave without purchasing.
In an increasingly competitive market, every customer is gold. In 2018 sending abandoned cart emails to recover a customer isn’t enough. Many online retailers focus too much on traffic. The truth is, all the traffic in the world will not help your conversion rate. By giving your customer the best chance of converting, you will increase your sales and bottom line.

Abandonment rates in related industries.

  • Travel 82.7% 82.7%
  • Retail 77.5% 77.5%
  • Fashion 66.8% 66.8%

%

All eCommerce

So why are shoppers doing this and how can you help to combat this negative trend?

1. Shopping Cart User Experience (UX)

If it’s too hard to find what they want, they will leave. It’s key to ensure your website is as user-friendly as possible. Providing your site is responsive to all devices isn’t just important, it’s expected.

It sounds obvious, but make sure you showcase a “Buy Now” button clearly on the page to encourage shoppers to progress to the checkout. If they do make it to the checkout, ensure there is a “Guest Payment” option. People do not like things that take too long. If you are forcing them to set up an account, they might think it is too time-consuming and bounce. It’s best to give your customers an option to check out as a guest. At the end of the checkout process, you can then prompt them to sign up to make the process more efficient next time.
A good eCommerce software or retail ERP will make this process easy. Also, by having retail software that is integrated to your website, you can give customers live information about product availability. This information has been proven to be a significant factor in a buyer’s decision to purchase.

eCommerce automation solutions also help by providing A/B testing options for landing pages and carts. By trialling different layouts, you will accurately see which ones work best for your site, and replicate this across your product range. Also, eCommerce Automation solutions allow you to send cart recovery emails to their email addresses with promotional offers such as free shipping costs. Often, this additional discount or offer is enough to bring the sale back to life.

2. Online Payment Options

Have you ever reached the checkout and realised that the site doesn’t accept your card? Frustrating right? One of the reasons people leave and abandon their carts is because your website only accepts a handful of payment options. Help your customers complete their purchase and reduce shopping cart abandonment rates, by offering many payment options. Flexibility is key. Leading retailers let their customers pay the way they want to.

As a retailer, your goal is to create a personalised shopping experience and make that journey an enjoyable one for your customers. You might not think it’s important but having a variety of payment options for online shoppers such as PayPal, credit card, aids in a positive experience. In more recent times, services like AfterPay are giving shoppers the ability to buy now and pay later. Make sure you are meeting customer expectations and giving them what they want or more.

With the way cloud technology has evolved, modernising your cart with multiple payment options is a quick and easy process and will reward you with lower rates of cart abandonment. Take the time to review the options you currently have available and make sure you are keeping up with current trends in payment products and gateways.

3. Hidden costs and building trust

Following from payment options as the number one concern customers have, they also dislike surprises – especially if it means they have to pay for shipping and tax fees. If these costs aren’t clear from the start, you will lose your customer.

Display any hidden costs on your site, so your customer doesn’t feel like they have been cheated. Being upfront and honest at the start will assist with building a differentiated brand trust. eCommerce businesses have an additional trust barrier to eliminate that isn’t there in bricks and mortar stores. Because the customer can’t see, feel or smell the product they are placing trust in you as the retailer that your product will arrive as described.

4. Lack of product range/availability

Another critical factor that increases the chance of cart abandonment is product offering and availability. If there are limited size ranges, colour options or stock on hand, customers will turn away and look elsewhere. The Point of Sales is usually the place that bricks and mortar retail manage to trump online stores. Therefore, having real-time information about stock availability will not only increase your sales but also improve inventory management. Modernising cloud-based automation tools can go a long way to removing this burden for customers and suppliers. By having your inventory directly linked to your eCommerce cart, you can eliminate the uncertainty that some buyers have when it is not clear whether an item will be immediately available.

To counter this effect, you could try and have a pre-order option on your website where customers can select the item, but it won’t be shipped until it is in stock. Another differentiation option is to have website functionality where your customer can find the article at the closest bricks and mortar store.

Download the Guide: NetSuite for Retail and eCommerce

Interested in finding out more about a robust and fastly implemented cloud technology to target your cart abandonment? Download our complete NetSuite guide for retailers: “Satisfy your omni-channel shoppers.”

 At Klugo, we help businesses of all sizes leverage the power of NetSuite to improve their online sales, get a 360-degree view of their customers, and automate the accounting, inventory management and marketing processes, empowering managers and officers to lead their company’s growth.

In recent months, NetSuite has announced the launch of its SuiteSuccess editions, which are now available in Australia and are taking the market by storm. SuiteSuccess Small Business Edition gives a growing online retailer a platform to grow. 

By investing in the right technology early on, you can eliminate a lot of the complexity that comes with running a growing retail or distribution business and focus that time on building the business rather than running it. NetSuite SuiteSuccess editions come out of the box with industry-leading practices, that make going live in 45 days a reality.

Need a specialist’s free advice?

If you are a growing online retailer, a distributor who is wanting to expand their sales distribution channel or a large retailer who is wanting more accurate and usable data, talk to one of our experts today.

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Ten Commandments of Omni-Channel Retailing

Ten Commandments of Omni-Channel Retailing

In the digital generation, consumers switch from one device to another. Clients shop on mobile devices, computers, smart TVs, stores and social media. A shopper can be online shopping through your e-commerce retail while standing at your brick and mortar store to get a colour or size you don’t have in location. Australian retailers must offer a 360° seamless experience to increase sales. Their strategy must include various touchpoints, a shared inventory and marketing that targets multiple channels.

Managing all these tactics might seem a titanic job for the medium-sized retailer but is easy to do with the correct software. Inspired by an article from Matt Pillar, editor of Integrated Solutions for Retailers, NetSuite and Klugo put their experience with +3,000 retailers to write the ten commandments for a true omni-channel retail. They focus on getting a single cloud-based platform for building a 360° experience and avoiding a lengthy, costly and volatile integration of legacy systems.

1. Thou shalt not create false likenesses of omni-channel retail.

Australian retailers with old legacy store systems and separate online stores are spending countless labour and financial resources to unsuccessfully get their databases to “talk” to each other. This disconnection stops real-time and accurate visibility. Customers often realise when channels are not communicated. An omni-channel user experience results in seamless connections between the retail store, the online shopping, social media and mobile app. To differentiate from rivals, retailers must build seamless experiences that unite data in a single platform. The effort to give visibility to all users and associates within one unique platform will pay off with great customer engagement.

2. Thou shalt not take the name of Omni-Channel Retail in vain.

Luxury fashion retailer Ann Taylor said: “If she wants it and we have it, she gets it.” All revolutionary Australian retailers strive for this vision of a simple omni-channel. You saw it, we have it, but we can’t get it to you is not an option. With real-time cloud visibility of their inventories, multi-channel retailers can offer real shopping experiences with inventory positioning and fulfilment strategies. Effective customer-centric strategies depend on having items in-stock, or available through another channel.

3. Remember thy customers of multiple channels, keep them holy.

Cross-channel CRM merged with pioneering intelligence tools allows leading Australian retailers to analyse customer behaviour and identify business trends. To achieve customer centricity, omni-channel retailers manage cloud CRM based on customer preferences at all touchpoints. These tools also ease the administrative and IT costs associated with attempting to merge CRM in different outdated environments. A centralised platform effectively tracks consumer behaviour and preferences across all channels. Cloud retailers have a single, accurate, accessible and real-time CRM everywhere.

4. Honour all thy channels.

Running each channel as a separate business becomes next to impossible. When channels operate in silos, retailers fail to recognise physical stores as digital channel enablers and vice versa. Modern consumer behaviour tells us we need to have an active presence in all channels. With omni-channel marketing promotions and fulfilment, synergies can be made across all sales ecosystems. A Cloud-Based ERP enables retailers to access one true version of their data with live instant insights of every channel’s successes and failures. Centralised platforms facilitate building differentiation marketing strategies, they can accelerate positive touch points and adjust channels with poor performance.

Which are the top organisational Inhibitors to enable omni-channel?

Figure 1. While technology infrastructure is supposed to be an omni-channel enabler, 53% of retailers say
it’s exactly what’s standing in their way:

  • The existing technology infrastructure is preventing us from moving forward. 53% 53%
  • We don’t have enough e-commerce resources to manage all the available opportunities. 53% 53%
  • ROI is hard to quantify. 48% 48%
  • Budgeting – there is little capital investment available. 38% 38%
  • Stores are higher investment priority. 27% 27%
  • Stores don’t understand the mobile or cross-channel opportunities. 25% 25%
  • Marketing does not understand the digital strategies to support omni-channel e-commerce retail. 22% 22%
  • Difficulty getting IT resources for e-commerce projects. 18% 18%

NETSUITE FOR RETAIL

Interested in finding out more about a robust and fastly implemented cloud technology to make your omni-channel strategy. Download our complete NetSuite guide for retailers: “Satisfy your omni-channel shoppers.”

5. Thou shalt not murder inventory at the hands of a single channel.

Omni-channel never use single channel strategies. Channel purist consumers are vanishing. To efficiently track consumer’s preferences, all channels must offer the same selection of products. Merchandising the same way in all channels helps establishing a real baseline of each channel’s sales performance. Online touch points cannot be considered a last resort for dumping excess inventory. An innovative platform is the necessary root of any attempt to offer full assortment availability across channels. When inventory and product information are centralised in the cloud, pioneering retailers have strong foundations to manage their strategies. Fulfilment, returns, pickup and delivery, should be addressed in one place, in real time.

6. Thou shalt not commit channel adultery.

Omni-channel is a lifelong commitment. 360-degree customer service is a marriage to multiple touch points. Cloud-based platforms make that commitment easy by enabling a complete view of inventory and CRM through a single platform. Unified systems that seamlessly connect the physical stores, mobile devices, e-commerce retail, tablets and call-centres are crucial to sustain global customer satisfaction. Platforms like NetSuite’s SuiteSuccess are are enabling Australian retailers to lead with unprecedented visibility into their business. With these suites they manage from marketing and sales to inventory and financials.

7. Thou shalt not steal from one channel at the expense of another.

Consumers today expect merchandise to be fulfilled from wherever it lives to wherever they want it. Platforms can’t inhibit access to inventory to understand consumer behaviour across channels fully. From an inventory standpoint, siloed data results in inaccurate inventory controls, overstocking and excessive carrying costs. Centralised data systems with powerful dashboards and reports like NetSuite help retailers pioneer in understanding how customer engagement and transactions happen across channels by “putting it all out there.” This way consumers choose their path. With access to customers’ files at the physical store, sales people offer highly differentiated and enhanced customer service. Knowing their customers’ purchase history, as well as dropped carts, empowers them to boost the in-store sales.

8. Thou shalt not bear witness against your e-commerce customer.

Fairness, consistency and transparency in pricing, availability and delivery must prevail across all channels. Using a strategic price disparity across channels is not discouraged, but if a loyal multiple channel customer wants to purchase an item in the store at the low price offered online, why wouldn’t the retailer enable that sale? According to Oracle research, half of leading retailers acknowledge cross-channel customers are more profitable than single-channel customers. It is a paramount task to adjust multi-channel shoppers’ price expectations and businesses fulfilment preferences with disjointed platforms. Robust centralised data clouds allow leading retailers to make customer-centric last-minute price decisions in each touchpoint.

How are Australian retailers overcoming organisational inhibitors?

Figure 2. Technology investment in a streamlined—or better still, single—platform is recognised as the best
means of achieving channel convergence:

  • Investment in a streamlined technology platform infrastructure. 57% 57%
  • An executive tasked with managing and improving the overall customer experience. 51% 51%
  • More coordination with marketing. 36% 36%
  • More coordination with stores. 36% 36%
  • Vendor ecosystems/partnerships that make point solution selection easier. 26% 26%
  • More experimentation. 25% 25%
  • Greater reliance on third parties (marketplaces or vendors) for technology and fulfilment infrastructure. 21% 21%
  • Solutions that doesn’t burden our IT department. 21% 21%
  • Case studies/success stories in my vertical. 11% 11%

9. Thy e-commerce retail team shalt not covet thy brick and mortar stores sales.

Whether a sale was consummated via clicks and credit or cash and carry, a sale is a sale. The problem comes when someone must take credit for that sale. Ideally, 93% of retail sales happen in stores, but maybe the relationship with the client started on an iPad in a coffee shop, or it began in an office PC. Most oftenm your customer will engage fully with your brand when they are physiucally in your store. But five years down the road, a lifetime customer will be with you as an online retailer, a shop store customer, in your mobile app and reading your social media and emails. It doesn’t matter where you first engaged, in the omni-channel retail reality, channel zealots can’t call the shots. Pioneering retailers with the help of Cloud-Based ERP can create strategies that reward associates both where the consumer demand generated and where it closed.

10. Thou shalt not covet thy competitor’s omni-channel strategy.

RSR research shows that 18% of retailers haven’t determined their cross-channel differentiator. In the omni-channel offering, even if the technology is the same, there are great opportunities to rise above the noise and differentiate. Centralised cloud data enables cross-channel customers visibility anytime and anywhere, allowing shopping experiences to be highly customisable. Cross-channel inventory strategies enable omni-channel marketing and offer powerful customer service tools as truly seamless experiences.

Need a specialist’s free advice?

Feel free to call an expert in Retail Enterprise Resource Planning Systems today. Find out how cloud-based technology can make your retail business a real omni-channel beast.

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New Tools of the Trade Needed for Retailers

New Tools of the Trade Needed for Retailers

Expanding Into Global Markets

The global cross-border eCommerce market is set to grow by 25% annually, so for retailers, their opportunities to grow often lie outside their immediate borders.

Driven by the demand for better prices and reliable product quality in countries such as China and across South-East Asia, retailers can no longer rely on their local customer base, with the need to view regional and global markets as the “new local”.

Out With The Old, In With The New

While traditional approaches to payments, fulfilment and customer service may still work for local customers in bricks-and-mortar stores, if retailers want to break into the international market, it’s out with the old and in with the new.

Retailers of all sizes and sectors need to harness the power of new technologies and processes that can effectively launch customer-facing channels anywhere in the world.

Challenges that retailers often face span across the following areas:

  • Managing inventory and fulfilment.
  • Currency and tax management processes to comply with regulations across different countries.
  • Customer service and managing relationships with global buyers.

It’s Time for New “Tools of the Trade”

One in four Australian customers expect their orders to arrive from another country within three days. And, while deliveries must be fast, the post-sales services like returns and repairs must be equally as efficient.

To cope with the above challenges, complexity, and demand that cross-border markets bring, it’s time for new tools of the trade.

So, if retail businesses want to succeed, it’s critical that they take advantage of what’s available to them in order to fulfil their customers and continue to expand the business.

This includes automating current processes, scaling to fit emerging opportunities, delivering real-time visibility and gaining insight into where future opportunities lie.

Retail ERP Software

In order to manage the many complexities that lie within managing a retail business, along with ensuring that cross-border customers are kept happy, an increasing number of companies are seeking retail ERP software to help them stay competitive.

Real-time visibility into inventory levels, delivery performance, order management, CRM, multiple currency management  and eCommerce all contribute to why retailers choose ERP software – but above everything, retailers must adopt an open, agile mindset about their overseas opportunities.

To find out more, download the white paper below or get in touch with an expert.

How Flooring and Carpet Businesses can Seize Growth Opportunities

How Flooring and Carpet Businesses can Seize Growth Opportunities

Industry Outlook

Industry revenue in the flooring and carpet retailing and distribution sectors has been affected by strong import growth and increasing competition from substitute flooring products. However, higher demand from the residential housing market has helped reduce this decline. 

How Aussie Flooring and Carpet Businesses can Seize Growth Opportunities and Globally Compete

To beat overseas competitors and stand out in an uncertain market, successful flooring and carpet businesses are seizing new opportunities to grow with cloud-based carpet and flooring software. They’re streamlining business operations in order to develop new products and services, improve supplier, order and inventory management, meet customer demand, manage eCommerce, and make informed, data-driven decisions in real-time.

Cloud Technology for Flooring and Carpet Businesses

NetSuite is a cloud-based, single business management platform eliminating the need to update multiple customer, vendor, inventory and marketing systems. Using NetSuite, a single system solution, provides you with the ability to:

  • Have a single customer record across the entire network, allowing you to profile, predict and push 1:1 marketing campaigns, using NetSuite’s unified CRM functionality.
  • Automate workflows across your business.
  • Gain real-time visibility into full business operations across all stores.
  • Use NextService, a native to NetSuite field service solution, to schedule deliveries and installations via mobile app, complete with GPS routing for drivers, compliance checklists for field service staff when they arrive at the job, and customer sign off upon completion.
  • Use the mobile app to schedule service calls – this could be for after-care treatment of flooring, repairs, maintenance, cleaning services and more.

Upgrading to a modern, scalable, cost-effective system means that your IT strategy is future-proof, providing you with more time to spend on seamless customer experience and business strategy.    

Thriving or Barely Surviving: Why Insight is the Difference for Furniture Retailers

Thriving or Barely Surviving: Why Insight is the Difference for Furniture Retailers

The furniture retailing industry has faced a challenging market over the past five years. Weak consumer sentiment, reflecting subdued retail spending across the domestic economy, has adversely affected trading conditions.

However, rising disposable incomes and increased demand for residential property construction have boosted industry revenue, which is expected to reach $7.4 billion in the next five years.

So, what’s the difference between businesses who are reaping the rewards from the growth – and those who aren’t?

Barely Surviving 

Having disjointed business systems can be instrumental in the downfall of a furniture retailing company.

Outdated technology and/or multiple business processes can be the cause of several issues that can impact long term success, including:

  • High operational costs and business inefficiencies.
  • Limited business growth.
  • Manual information exchanges that don’t communicate in real-time.
  • Lack of visibility into key business metrics.

Successful home furnishing businesses spend their time on customer service and business strategy because they don’t need to focus on the management of spreadsheets, old on-premise solutions and/or point solutions.

Thriving

By acknowledging that modernising back-office technology is the key to making informed, data-driven decisions, home furnishing distributors have the insight to capitalise on new business opportunities.

Streamlining operations is imperative for new product and service offerings, and development, supplier, and order  management.

Successful home furnishing businesses are using agile business technology that allows them to explore new distribution channels, gain real-time industry specific KPIs, demand planning, supply chain, inbound shipment management, procurement, eCommerce and more – all in one complete system.

In today’s fast paced environment, cloud software for retailers provides insight, which is the difference between businesses who are thriving and barely surviving.

Cloud Software for Retailers

 

 

How Aussie Retailers are Surviving the Arrival of Amazon

How Aussie Retailers are Surviving the Arrival of Amazon

The Amazon Effect

Amazon, the American retail giant, is the largest online retail business in the world. Its last reported annual revenue was $135.99 billion USD – twice the combined revenue of its nearest competitors; JD.com, Alibaba and eBay. While it isn’t a total newcomer (Amazon has been operating it’s kindle store over here for years), the arrival of Amazon has been a major wake up call to the local Aussie retail market. A recent Commonwealth Bank survey found that 41% of businesses see Amazon as a threat – and it’s no surprise; while Amazon is not only the biggest retailer on the earth – it’s also larger than most of our own retailers combined.

Aussie Retailers Won’t Win The Price War

While there’s no reason that smaller, independent businesses can’t thrive, it’s JB Hi-Fi, Harvey Norman, Myer and David Jones that are in the firing line.

Scott Kilmartin, producer of documentary ‘David vs Amazon’, explains “globally, these are the type of businesses that Amazon has a huge impact on. Businesses have to focus on their customer and what they want rather than trying to compete on price.”

The arrival has no doubt caused plenty of headaches for management teams (and investors) of retailers across the country. Many fear that Amazon’s dominance will draw shoppers away from traditional brick-and-mortar stores to Amazon’s online store, similarly as it has done in the United States. One of Amazon’s draw-cards is that it offers lower prices than other retail stores and ecommerce sites. However, for Aussie businesses, a price war is not the strategy to take. Aside from low prices and a wide variety of products, one other factor that attracts so many individuals to Amazon is its fast (and cheap) delivery options. This is where JB Hi-Fi is trying to compete. Having already launched a speedy same day delivery plan for online customers (and in some cases, delivery within three hours), they’re also upping their game to to make their online store more appealing.

What Does the Future Look Like?

We’re experiencing a wave of smaller, innovative Aussie companies who are making their push to take on established industry giants. While Amazon is putting pressure on some of our household named brands, nearly half of younger consumers (41.8%), said they would switch brands if presented with a poor buying experience – so if retailers pay attention to their customers and remain innovative and transparent, they should be able to respond directly. For Aussie businesses, a business management system (NetSuite for retail) without transparency could be fatal when competing in this new market.  Does your retail business have a software system that gives you the competitive edge?