How to Reclaim Abandoned Cart Revenue

Introduction: The Costly Problem of Shopping Cart Abandonment

Abandoned shopping carts are a major pain point for ecommerce businesses. Studies show that over 60% of online shopping carts are abandoned before completing a purchase (Baymard Institute). With abandonment rates this high, the amount of lost revenue can be staggering. It’s estimated that businesses lose over $4 trillion annually from cart abandonment (Barilliance).

This post will provide actionable tips on how ecommerce businesses can reduce shopping cart abandonment and recover revenue from abandoned carts. By implementing smart strategies around design, messaging, and re-engagement, you can significantly increase conversion rates and sales. We’ll cover why carts get abandoned, ways to prevent it, and techniques for bringing back lost customers. Read on to learn how to turn abandoned carts into completed orders and reclaim lost revenue.

Why Carts are Abandoned

Abandoned shopping carts are a major source of lost revenue for ecommerce businesses. Research shows over 60% of online carts are abandoned before completing a purchase. There are several key reasons customers tend to abandon their carts:

High shipping costs – Customers are often surprised by how much shipping adds to their total order cost. If shipping seems unreasonably high, they may ditch the cart and look for cheaper shipping options.

Lack of trust in the site – Security concerns are a big factor too. If the customer doesn’t trust the site or payment processor, they may hesitate on completing their order. Things like no SSL certificate or contact info can raise red flags.

Complicated checkout process – Too many checkout steps or a confusing interface leads customers to bail on their cart. Keeping checkout simple and user-friendly is key to conversion.

Unexpected fees or charges – Hidden costs like taxes or processing fees tacked on late in the checkout experience also lead to abandoned carts. Being upfront about the full pricing is important.

Tips to Reduce Abandonment

There are several strategies online retailers can implement to reduce shopping cart abandonment rates.

Offer free shipping – One of the main reasons carts are abandoned is high shipping costs. Providing free shipping, even if just on orders over a certain amount, can incentivize customers to complete their purchase. Make your shipping costs and policies transparent upfront to avoid surprise fees at checkout.

Build trust with badges & guarantees – Many shoppers abandon carts due to lack of trust in the website or brand. Display trust badges and security seals to reassure customers. Offer generous return policies and satisfaction guarantees so shoppers can feel confident buying from you.

Simplify your checkout process – Every extra field and page during checkout increases abandonment. Keep checkout fast with just essential info like email, shipping address and payment. Auto-populate data where possible. Offer guest checkout options.

Implement loyalty programs – Loyal customers are less likely to abandon carts. Offering rewards programs or discounts for repeat buyers incentivizes them to stick around. Loyalty programs build engagement with your brand.

Send cart reminders – Email or SMS reminders to customers who’ve abandoned a cart gently prompts them to come back. Time reminders carefully and offer discounts or free shipping to nudge them to purchase. Cart reminders can recover up to 25% of abandoned revenue.

Recovering Abandoned Carts

Retargeting ads are a great way to re-engage customers who left items in their carts. By showing ads of the products they added to cart, you can remind them to complete the purchase. Make sure to highlight any time-sensitive promotions or offers to create urgency.

Sending abandoned cart emails is one of the most effective ways to recover lost revenue. Email customers a day or two after they abandoned their cart with a reminder of what’s still waiting for them. Offer a discount code or free shipping to incentivize completing the purchase.

SMS reminders see higher recovery rates than emails since they are more immediate and attention-grabbing on mobile. Send customers a text letting them know they have items still waiting in their cart. Keep the message friendly yet urgent.

Offering live chat support gives customers instant access to assistance if they had questions or concerns during checkout. Having agents available to answer questions and walk customers through the buying process can help minimize abandonments. Make live chat easily accessible throughout the shopping journey.

Incentives to Complete Purchase

Offering incentives is one of the most effective ways to get customers to return and complete their purchase after abandoning their cart. Some of the top incentives to offer include:

Discount Codes

Providing a special discount code specifically for abandoned carts can entice customers to return. The discount gives them that extra motivation they need to finalize the purchase. You can offer sitewide discounts, discounts on the full cart, or discounts on specific items a customer left behind. Tailor the discount amount based on your margins – 10-15% off is usually enough to get someone back while still making the sale worthwhile.

Free Gift with Purchase

Everyone loves getting something for free. Consider offering a free gift like a t-shirt, water bottle, or other useful item when a customer comes back to complete their purchase. Even small freebies can sweeten the deal and give customers that final nudge to close the sale. Just make sure your margins allow for absorbing the cost of gifts.

Free Shipping

One of the top reasons carts are abandoned is due to high shipping costs. Providing free shipping is an obvious remedy for this. Offer customers free standard shipping if they come back within a certain timeframe to complete their order. Or give a coupon code for discounted or free expedited shipping. Eating shipping costs brings many customers back to checkout.

Loyalty Points

Loyalty and rewards programs are powerful tools for re-engaging customers. When someone comes back to complete an abandoned cart, grant them bonus loyalty points. This makes them feel like a valued customer and incentivizes them to return and keep spending to earn more points. Just make sure your loyalty program offers valuable rewards to make the points worthwhile.