Why do so many shoppers abandon their carts?
- 46.1% of cart abandonments occur at the payment stage
- 37.4% occur at checkout login - Forcing customers to create accounts is the #2 reason customers abandon.
- 35.7% occur once the shoppers see shipping costs - Unexpected shipping costs remain the #1 culprit regarding cart abandonment.
- 20.9% occur when the user needs to enter their billing address
- 20% occur when the user needs to enter their shipping or delivery address
Additional facts to know:
- Almost 50% of all abandoned cart emails are opened and over 1/3 clicks lead to purchases back on site
- Most Abandonments Happen on a Tuesday, and the Fewest on Saturday.
- Almost half of all cart recovery emails are opened
- 13.3% of cart recovery emails are clicked through
- Over 1/3 of clicked cart recovery emails convert to a sale
- The AOV or recovered carts by email is 19% higher than typical purchases
Strategies used by top online retailers:
Our marketing research team analyzed the top 50 online retailers to see what strategies and channels they use when attempting to recover customers who abandoned their checkout flows. Email remains the #1 channel, likely because it's the most cost-effective and easiest to scale. Cart specific retargeting remains underutilized and is typically grouped into "dynamic retargeting" which show items customers viewed but not specific offers tied to those items. Onsite campaigns are non-existent within these top retailers but has proven to be cost-effective for mid-market and smb ecommerce brands.
Abandonment rates vary by sector
Fashion retailers enjoy the lowest abandonment rates. Relatively easy purchase processes and ease of return help here, and also explain why retail abandonment is lower in general.
Travel and finance abandonment is highest, partly due to the generally longer application processes, and perhaps the relative lack of digital maturity when compared to retail.
Industry Specific Abandonment Rates
As e-commerce continues to evolve into an omni-channel and personalized world, we expect to see more top brands take advantage of customer data in a way that goes beyond "retargeting" and leads to engaging customer experiences that drive engagement and emotion. A recent WSJ article confirms that retailers aren't living up to consumer expectations (aka 1:1 marketing). 90% of marketers believe they're personalizing engagement with customers but only 40% of customers agree.
The key to any great cart abandonment strategy is to send the right products paired with the right content at the right time ... this can't be achieved through workflows and creating customer cohorts. This end goal will be powered by machine learning built on top of robust customer data with the goal of consumer expectations matching marketers promises.