The internet has changed much about the way consumers shop for and buy items. But even with new technology, closing a sale remains one of the hardest parts of business. However, technology may be making things better for online retailers. A recent report from SalesCycle shows that cart abandonment rates are declining.
According to SalesCycle's report, based on data from more than 500 global brands such as Hewlett Packard, Iberia and Ralph Loren, they found that cart abandonment rates dropped to 74.32% in Q1 2016 from 76.6% in Q3 2015 and 75.45% in Q4 2015.
This drop may seem small, but it is significant. It shows that retailers are getting better at creating online shopping experiences. Though the research uses data from SalesCycle clients, the insights behind the declining cart abandonment rates can be used for all retailers.
One of the key insights is that customer personalization is helpful in getting customers to find the items they're most likely to buy. SalesCycle notes an "uptake in on-site remarketing and on-site personalization" in contributing to the declining abandonment rate.
The study found that on-site remarketing, reminding people of items in their basket from previous visits, is extremely effective at preventing abandonment. The researchers noted it works by showing relevant, personalised content when visitors need it most.
Though the report specifically mentioned on-site remarketing, using remarketing through search or social media ads can be equally useful. While off-site remarketing doesn't have the advantage of being linked to the cart, being able to remind people of items they were interested in or offers they wanted to take advantage of.
The report also mentions the benefits of using customer research to craft better campaigns and product descriptions. The report mentions several ways to gain customer feedback to improve their ecommerce site. They found that "by actioning feedback from customer surveys and purchasing data, marketers are able to provide better customer experiences online through better interfaces and benefits".
One of the most important takeaways from this report is that consumers are becoming better at finding the products they want online and that the market as a whole has matured. As consumers become more comfortable with shopping online, there will be continued decreases in the number of people who abandon their cart.
"The lowest abandonment rates are seen in markets with online maturity such as North America and Europe," the researchers explained in a release explaining the research. "In these regions, online shopping is all about increasing the convenience for consumers. The markets with less developed e-commerce technologies are where we're seeing slightly higher rates of abandonment."
The takeaway from this research is that there are things that business owners can do to make their online stores more effective. There is an ever-growing market of consumers who are searching for reliable and affordable online retailers.
For more research on how to improve your business, read this article on what consumers are asking or from online and in-store retailers.