Nowadays, consumers have more options than going to malls, shopping outlets, and supermarkets when getting what they need. They can use their smartphones to order on popular eCommerce platforms in the Philippines, such as Grab, Shopee, Lazada, and even TikTok.
Central to this digital shopping experience is the omnipresent shopping cart, a gateway to customer transactions. However, the persistent challenge haunting eCommerce businesses is cart abandonment. As users navigate away without completing their purchases, businesses like yours may grapple with lost revenue and more. Fortunately, this blog teaches you how to reduce cart abandonment, improve conversion rates, and retain customers in the long run.
What is Cart Abandonment?
Shopping cart abandonment occurs when online customers add items to their virtual carts or orders but leave the website before completing the purchase. In 2022, the average cart abandonment rate was 79.53% across sectors. Customers often cite the following reasons behind this decision:
- Unexpected shipping costs
- Complicated checkout process
- Security concerns
- Comparison shopping
- No guest checkout option
- Limited payment options
- No discounts or promo codes
- Ambiguous return and refund policy
- A simple change of mind
Abandoned carts don't just translate to lost sales. For one, they incur higher customer acquisition costs. Although marketing efforts may boost brand awareness and lead customers to your online store, they don't always guarantee a converted customer and a return on investment in business.
Plus, cart abandonment can lead to a lower customer lifetime value—the total projected revenue you can earn from a buyer throughout your entire relationship. One online sale can lead to continued spending and referrals to your brand. Conversely, losing potential customers may increase your long-term costs.
Abandoned carts can also lower your profit margins. You may be tempted to lower prices or offer discounts so customers will eventually purchase. While good in the short term, this strategy can decrease your average order value and encourage buyers to leave their carts and wait for reduced prices. In the long run, you might attract more discount-oriented customers.
7 Tips and Strategies to Reduce Cart Abandonment
Shopping cart abandonment is common in eCommerce. But it doesn't mean it's completely unpreventable. Here are ways to reduce your cart abandonment rate and increase customer satisfaction.
1. Streamline the checkout process
There's nothing more annoying than going through several steps or pages when buying a product online. To minimize friction and enhance the customer experience, simplify the checkout process.
For instance, you could shorten the checkout form since a long one may intimidate customers. Consider keeping the whole process on a single page to avoid frustrating buyers and help them save time. Conduct an A/B test to see how different checkout forms, elements, and pages resonate with customers.
You could also provide an option to save customer details or preferences for faster checkout in the future.
2. Show all costs
Online purchases often involve additional shipping, handling, and tax fees, significantly increasing the total amount customers must pay. You should display this information in the checkout process to avoid surprising customers and discouraging them from completing the purchase. Clearly indicating the total order cost throughout the checkout process ensures customers are fully aware before purchasing.
Let's use McDonald’s as an example. When you're ready to checkout, you'll see the costs of your purchase. In this case, the order summary shows an additional PHP 49 delivery fee.
Source: Screenshot from McDonald’s McDelivery website
3. Offer multiple payment and delivery options
Catering to diverse customer preferences increases the likelihood of completing the checkout process. Here, it's best to offer multiple payment options. In fact, a 2023 study found that while 71% of Filipinos prefer cash on delivery (COD) as their primary payment method, a significant 29% opt for payment centers, e-wallets, and in-app wallets. Debit and credit card payments are also some of the older, but widely used modes of payments that customers are sure to appreciate.
One such brand that offers several payment options is the online tech marketplace Kimstore. It accepts debit and credit cards with installment options, e-wallets, buy-now-pay-later schemes, bank and non-bank transfers, and COD. Moreover, to enhance customer convenience and streamline transactions, integrating innovative solutions like RUSH's Scan to Pay feature can significantly improve the checkout experience.
Besides multiple modes of payment, you could use different delivery options to accommodate shipping preferences, such as standard and express shipping and local pickup. You could also display the estimated time their order will arrive to manage customer expectations.
4. Show clear calls to action
An effective checkout process requires clear and concise calls to action (CTAs). To achieve this goal, place CTA buttons prominently on product and checkout pages for easy visibility. Also, use strong verbs—such as "Buy Now," "Checkout," and "Complete Order"—to provide clear direction and encourage action.
This is exemplified by Tokyo Bubble Tea, which strategically places CTA buttons from the homepage to checkout.
Source: Screenshot from Tokyo Bubble Tea
5. Offer guest checkout
Not all customers want to log in or create an account when ordering online. This scenario calls for a guest checkout option to streamline the process and prevent cart abandonment. Just make your guest checkout simple and easy to use. Toward the end, inform buyers that they can create an account for faster future purchases and purchase history to foster customer loyalty.
Take Burger Beast, for example. It doesn't require user log-ins or registrations to buy products. Once you order and hit the "Checkout" button, it immediately shows you the checkout form. This option helps customers save time and enjoy their shopping experience.
6. Use data to monitor cart abandonment
Data is king in eCommerce. Use it to your advantage, especially when tracking and fixing cart abandonment. Extract your website's analytics to identify areas where customers are dropping off. In effect, targeted improvements to the checkout process can address specific pain points and enhance the overall user experience.
7. Optimize your website
Website performance and speed can vastly influence the checkout experience for customers. For instance, slow loading times may dismay customers, making them turn to competitors with faster websites.
Use a credible online store builder to create a user-friendly website so customers will stay and purchase. Also, optimize your website for different devices to cater to the growing mobile shopping audience.
Make Online Shopping Seamless
Cart abandonment remains a persistent challenge in eCommerce, costing you and other businesses billions in lost revenue annually. By addressing this problem and implementing the strategies above, you can significantly improve your conversion rates and maximize your revenue potential.
If you're ready to combat cart abandonment and propel your eCommerce business forward, explore RUSH's eCommerce platform or In-Store solutions. It can streamline the buyer’s journey on your website—from Discovery to Decision—and eliminate the legwork of optimizing your online store. RUSH also has new in-store solutions in the Philippines, such as Scan to Pay and Scan to Order, which enhance your customers’ ordering and payment experiences.
Contact us to learn more about our eCommerce packages.
