This represents a huge amount in lost sales. On average, for every 1 completed sale, 3 others are started and abandoned. The Royal Mail estimated that the total value of abandoned online transactions in the UK in 2010 was £4 billion. This is an increase from £2.7 billion in 2009 and it’s set to continue.
Abandoned shopping baskets also mean wasted marketing spend and in some cases, damaged customer loyalty. Basically, a customer wanted to buy from you but something changed their mind at the last step.
Another way to look at this is: for every customer that rings up a sale through your till, 3 others find your shop, come inside, look around, pick up a few products, and leave…leaving their shopping basket in the aisle.
In 2011, the Royal Mail estimated that the total value of abandoned online transactions in the UK in 2010 was £4 billion. This is an increase from £2.7 billion in 2009 and set to continue.
Not only that, it costs you money to get those visitors in the first place. Abandoned transactions mean wasted marketing spend (in terms of customer acquisition costs), lost sales and damaged customer loyalty. Basically, a customer wanted to buy from you but something changed their mind at the last step.
Why? And what can you do to encourage those online shoppers to complete their transactions? Many of the reasons that customers give for abandoning transactions are actually within the seller’s control
Small changes – from fixing spelling mistakes to having a no quibble returns policy – can have a big impact. Persuading even a small fraction of the 72% who previously walked away, to complete their purchases, can mean big improvements to your sales, profitability and customer retention. For example, in recent internal research conducted by PayPal, it found that changing the placement and design of payment information increased transactions by 15-17% and increased average revenue per visitor by 18-23%.
Improving conversion rates and reducing transaction abandonment can be achieved with some simple steps. Here is a handy checklist for the 3 critical areas to consider:
Connect with your customer
Check spelling and grammar
Display the company you keep
Eliminate unexpected costs
Explain your returns policy
Have a customer support page
Minimise the time it takes for your site to load
Test for technical issues
Ensure the information on your site is accurate and up-to-date
Always have the customer experience in mind
Address security concerns
Review your payment process
Select a trusted payment provider
If you want to minimise shopping basket abandonment, please use this post as a guide of aspects to consider. Also, you know where we are if you’d like to discuss how we can improve your conversations – guaranteed!
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