However, contrast this situation to the online world, where approximately 80 percent of the time, any item placed in a shopping cart is removed before check-out. Why? How can businesses get customers to check-out with a full shopping cart?
Unlike in the real world, online shoppers do not make the decision to purchase when they are viewing an item, or when it is placed into the shopping cart. It is made when that cart has been figuratively wheeled to check-out, and the visitor has to pull out their credit card. It is at this point that the visitor decides to either go ahead with the purchase, or abandon the cart. Eight times out of ten, the cart is abandoned, and the visitor walks out the door.
Knowing that visitors don't decide to purchase until actually at a check-out is useful information, but how can we use this to improve conversion ratios? One answer seems obvious - don't allow visitors to reach check-out with a cart that contains -abandonable" items - items that will encourage visitors to walk out of the store.
Suppose a visitor who has purchased before arrives at the Web site. They have purchased 5 times previously, with an average order size of $100. As they navigate around the site, they fill up their shopping cart with a number of items. In fact, far more than they normally would, and they arrive at check-out with a shopping cart that totals over $200.
What happens now? Eight times out of ten, instead of either purchasing the full amount, or reducing the cart size, the customer simply -abandons" the cart, and walks away.
How can we stop the above scenario unfolding? As it is a return customer, we have a number of options:
- Whenever a customer returns to the Web site, allow them the ability to view their previous orders, and simply repeat-purchase these if requested. This will inhibit them from filling up a cart with items they've never purchased before.
If the customer, when filling up a cart, exceeds the maximum amount from previous orders, inform them. A message on their screen should appear stating -your order now exceeds $100. To advance directly to check-out, click here". This should stop them from filling up the cart with too many items.
The scenarios above cover the situation of a previous customer, where we know their purchasing habits, and recognise and respond if they step outside their pre-established boundaries. What about a first-time customer? How can we get them to check-out with a cart they won't abandon?
To do this, you must study the relationship between your products, and the shopping cart itself. Numerous Web site analytical software exists (WebTrends being the market leader) to enable this to occur.
What can we learn?
- Product A has a very high rate of shopping cart abandonment, ie. if product A is placed into the cart, the cart is much more likely to be abandoned. Why? Look at how product A is presented, its picture, its text description, its warranty, maybe even its price. Does this differ to how other products on the site are presented?
- Product A has a lower abandonment rate when Product C is also in the cart (as product C has value-added benefits). Knowing this, whenever Product A is selected, we can prompt customers to add product C as well.
- Product A has a much lower abandonment rate if the -security" and -privacy" pages are viewed on the way to check-out. IE. Navigational path of the visitor can reduce abandonment rates. Again, we can prompt visitors to behave in a manner which should reduce shopping cart abandonment.
There are also some techniques you should employ on the Web site itself to reduce abandonment rates and improve revenue flow.
- Web sites must display prices, and allow purchases, in multiple currencies
There is no point in an Australian Web site, whose largest online market is the USA, displaying prices and accepting payment only in Australian dollars. No American customer will know what these figures are, and will in all probability simply think that prices are in US dollars. This will in turn lead to them having a higher expectation of the price of the good, and not purchasing. Therefore, display prices in multiple currencies, simply by adding a link to a currency converter. However, you should not only display prices in foreign currencies, you should accept payment in this form as well. If your current Ecommerce Partner does not have the add-on facility of multiple currency payments, then simply change to another, there are literally hundreds of companies in the Australian marketplace who can offer you this facility.
- Reduce the number of steps in the purchasing process.
With the multitude of shopping cart systems in the marketplace, there are a number of different payment gateway methods. Too many systems are convoluted, employing superfluous steps in the -buy" process, leading to confused customers, and abandoned shopping carts. The less steps, the less the opportunity for customers to give up and walk away. Ideally, to purchase any item from a Web site should be a 3-step process:
- See product, add to Shopping Cart
- Click on Checkout
- Add contact and payment details, finish transaction
Any system that requires you to become a member before purchasing, 3 clicks to checkout etc, will be adding extra steps to the -buy" process, and decreasing the efficiency of the Shopping Cart.
All Web sites should allow for multiple methods of purchasing items. When a customer arrives at the checkout, they should be presented with a number of different options to complete the transaction. Obviously, credit card transactions must be available, but this should include all cards, not just Visa and Mastercard. Utiilise a payment gateway system that accepts BankCard, Amex, Diners and more. Remember, there are a lot of different cards out in the marketplace, many of your would-be customers will not be using only Visa.
You've done all the hard work - researched your target market, attracted the right visitors, offered them attractive products for sale. Now, if only you could get them to check-out.
By studying your visitors, and the relationship between your products, Web site and shopping cart, abandonment rates can be reduced, and customer numbers and profits can be increased.
Mark Fradkin is client services manager at Flotsam, a Melbourne-based online strategy consultancy. You can contact him by e-mail at mark@flotsam.com.au or visit Flotsam online at www.flotsam.com.au.
