68% average abandonment rates

stop customers abandoning you

As the new year gets underway, it seems sensible to ask ourselves what our priorities should be for 2019. Clearly, priorities vary from business to business, but as the economy threatens to tighten, and the pressure on return on investment continues to dog us, there are things we should all have as priorities in 2019 – or perhaps any year.

This is the second of ten THOUGHTS addressing suggested  priorities for 2019.

Yesterday, I wrote about conversion rates, with a focus on the offline environment. Conversion rates are, of course, important both offline and online. They are very often a bigger problem in the online environment, due to the absence of human contact throughout the sales process.

Recent research found that the average abandonment rate in e-commerce is 68%. To be clear, this means that 68% of all customers, or potential customers, who put goods in the cart, do not make a purchase. In addition to customers who do not push the button to buy what is on the cart, there must also be concerns with customers who do not even reach the point of placing goods in the cart.

The primary reasons for not placing goods in the cart include:

  • The product they want is not available
  • The product available is not the right price
  • The delivery timeframe is not acceptable

Australian e-commerce sites are notorious for not having the product option wanted. Pricing needs to be at least competitive. Australian sites often offer slower delivery times than overseas sites.
The primary reasons for cart abandonment include:

  • High delivery costs (56% sites as a reason)
  • Inconvenient terms (80% sited as a reason)
  • The need to establish a user account (23% sited as a reason)

High delivery costs are a real issue in Australia. Slow delivery times and detailed conditions are also common in Australia. Setting up an account offers the customer no obvious benefit.

In addition to eliminating the issues, chat box facilitates communication between the customer and a vendor representative and can help a great deal in reducing cart abandonment.

THOUGHT

Monitor (1) traffic to your websites; (2) the customer journey through your site; and (3) the abandonment rate. It is arguably more important to maximise conversions than to secure more enquiries, and it is almost certainly cheaper.

Take action to reduce the impact of the six issues listed above. While they are an issue, you will never maximise conversion rates.

For future reference, it is interesting to note that Amazon has been very effective in reducing (though not eliminating) these issues. This is a reflection of the high-quality data Amazon collects (most of which you too can collect) and the absolute customer focus on the application of that data.

SOURCES OF STATISTICS

Wordstream, SIO Digital, Salesforce, Annex Cloud, Nielsen, Seth Godin and Small Business Trends
John

MORE THOUGHTS – www.djohncarlsonesq.com 

No tags 0