Spend any amount of time with an owner of an online store or E-Commerce specialist and the topic of cart abandonment is going to come up.
To keep pace with said consultant there are a few important statistics to be aware of but first.
What is cart abandonment?
Cart abandonment is a term used by professionals to describe incomplete purchases online. Those times a user adds a product to cart but fails to complete the transaction online. In the past it had to do a lot with people's inherent lack of trust giving their credit card details online but now it has moved to another primary issue which results in a staggering 60% of cart abandonment as you will see in the list coming up.
It is such a big issue for all online businesses as the statistics in this post will show you but here at Bootstrapps we never just leave you with a feeling of statistics despair but will show you one a few strategies to reduce it and one killer app you can use whether you use Shopify, WordPress, Squarespace and [insert your website platform here].
- 69% of online carts are being abandoned by online shoppers
- 45% of cart abandonment emails are opened (first hint)
- 21% of these emails are clicked on
- 50% of these clicks result in purchases (Um wow!)
- Extra costs like Shipping is the leading cause of abandonment (+60%)
- Next primary reason was needing to create an account (37%)
- Some industries like finance suffer higher cart abandonment rates of 83.7%
- Implementing marketing automation's leads to a 50% increase in conversions
- Europe has the lowest rate of cart abandonment at 70.9%
- APAC region has the highest cart abandonment at 76.3%
How to improve your cart abandonment statistics
So much has been written about this topic from how to design an online shop for maximum conversions, to slow websites and asking for too many personal details during the checkout process.
All of these are good things to be aware of but if you really want to reduce profits being lost from cart abandonment you are going to need to implement a marketing automation.
What is a marketing automation?
The best example of this in relation to online shops is email and SMS marketing automation's that kick in as soon as a cart is abandoned.
For the user this will look like an email from the online shop with their personal cart product items detailed and ready to order. (To really boost your conversion rate offer a one time use coupon code or free shipping.)
As we learnt from the statistics over 60% of carts are being abandoned due to the extra expenses like shipping so removing this conversion block will do wonders.
But you may be wondering what type of marketing automation you should be using?
And the answer to that is the humble pop-up.
But there's a problem
Sure sending marketing automation's to people who have bought from you before is easy as all the top tools like Shopify and WooCommerce for WordPress offer settings to do this.
But think about this scenario for a quick second. You have a brand new visitor who has never visited your website before so you don't have their email to be able to implement a cart abandonment marketing automation.
This user is interested in your products but unbeknownst to you is about to exit because they wanted free shipping like competitor X has.
What do you do?
You have to work with what you do know and one thing you do know is that they are about to exit your website by hovering their mouse over the close button or about to click back.
So if you know this you can implement one of the best marketing automation tactics called the exit-intent popup where ideally you will offer them free shipping or a coupon code like this.
The user enters their email address and this field is connected to your email marketing services. There are many to choose from including GetResponse, Constant Contact but our personal favorite is ActiveCampaign.
As soon as the visitor signs up you have no time to waste. Provide the special coupon code for free shipping or 10% off as above and take them straight back to their cart ready to checkout.
If you really want to get advanced you can use smart tagging to personalize the offer even more – see example below.
OK what do I do next?
The best thing about everything discussed is how easy it is to implement. All you need are two apps to make marketing automation work for your online store.
I have already mentioned the first thing needed being an email marketing service like ActiveCampaign (which can be as little as $9 per month.)
The other tool is what many consider to be the best pop-up builder available today called OptinMonster. Thankfully also doesn't cost an arm and a leg starting at $9 per month but you will need the $29 Pro Plan to access Exit Intent technology.
It's a good question as there are a myriad of other pop-up tools. One reason is that OptinMonster literally invented Exit Intent technology and even now own the trademark to the term which shows you how important it is.
But over and above this they have the most options to display relevant pop-ups at the right time. This is a big thing to get right because most people's apprehension with popups comes from being wary of annoying their users. It's a valid concern because too many wrong popups at the wrong time and visitors won't even add a product to their cart in the first place.
Get your popup in the right place at the right time and you have just made bank. Having a popup app like OptinMonster with sophisticated filters and display conditions is really important and worth paying monthly for.
No but really is there a cheaper option?
First I would like to say that any app that offers to do this type of marketing automation for free would be best to stay away from. Your time is just too valuable to put up with “buggy” software.
But if the $29 per month is too steep for your bootstrapped startup the next best recomendation that won't break the bank is an app called Thrive Leads.
It is not as easy to use and does lack a few of the display and targeting options of OptinMonster but it does have its own version of Exit Intent which is the main strategy discussed today so it definitely deserves to get a shout out here when talking about OptinMonster.
However for the best overall experience that will get you setup in the quickest time and with the best designs you really can't go wrong with OptinMonster.