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%
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.