With online businesses estimated to lose around 70% of revenue each year with users who don’t check out, it is vital any online business establishes a clear strategy for dealing with the online store walk-aways (or should we say click aways?!).
If your online business uses a shopping cart, or has its customer’s checking out for any reason at all, you may be costing yourself money and you don’t even know it.
We have already talked about cart abandonment in our earlier blog post. We were given nice enough to give you tricks to lower your cart abandonment rate. If you read that blog you will know that an average of 71.39% carts are abounded.
That is about 70% of your customers who are making the decision, after they fill up their virtual shopping basket, not to buy from you.
Rather than because a paying customer and boosting your sales, a huge 70% of users who visit your online store are changing their mind at the end of the sales process.
If you are an online retailer, you already know the costly impact cart abandonment can have on your business’s bottom line.
When a shopper walks away from their intended purchase, they are deciding not to buy. Which may be indicative of a either a problem with a sales process, or a technical issue. Either way, that decision is costing you money.
The principle of cart abandonment
Let’s refresh in our minds the principle of cart abandonment. Cart abandonment is the metric we use to calculate how many users opt out of their purchase. These rates are calculated when a shopper enters any item into their cart but never makes it to checkout – they literally abandon their online shopping.
Cart abandonment rates are calculated by dividing the total number of completed transactions by the total number of transactions that were initiated.
So how do you fix the problem?
Great question? Allowing your customers to just walk out cyber-door without trying to resolve the issue is bad for business.
Solve your cart abandonment problem and you could increase your sales and find yourself with a greater percentage of happy and loyal customers. Translation? More profits!
At the beginning of this blog post we shared the statistic of over 70% of carts are abounded.
If your business is able to retain just some of these customers, it will go a long way to improving your business’s bottom line.
While there are so many ways you can improve the quality of your online shop process, our best tip for ensuring more people checkout and you make more money from your online store?
Keep it simple! Don’t make it sales process overly complicated with repetitive actions, boxes to tick and details to provide.
Once a user has decided to buy, don’t give them the chance to change their mind. A fast loading one page checkout that is quick and easy to use will increase your sales.