An abandoned shopping cart is a source of serious concern for any online shop administrator. Many voices in the e-commerce industry are calling cart abandonment an eternal nemesis of online retail owners. It is truly frustrating for a number of reasons. First of all, if a user abandons a hefty shopping cart, you are leaving money on the table. Secondly, this means you and your team have lost time and energy to make good offers and guide shoppers through the sales funnel, only to lose them in the final stage of the purchase. We are here to lend a helping hand. We are going to show you a few ways in which our live chat solution can help you fight shopping cart abandonment.
In this article:
- Figures about cart abandonment
- Main causes of cart abandonment
- Live chat helps reduce cart abandonment
Figures about shopping cart abandonment
The overall average world shopping cart abandonment figure by Baymard is at about 70%. Yes, you read that right. 70%, meaning 7 out of every 10 shoppers will not complete the purchase and will abandon the cart. This is one of the most comprehensive studies on this subject ever conducted, taking into account 41 different research projects.
What does that mean in numbers? According to Forrester Research, e-commerce brands lose almost 18 billion USD per year in sales revenue due to abandoned carts. Yes, Billion – with a B. Moreover, next year, the total worth of abandoned merchandise in digital carts will rise to almost 4 trillion USD.
The numbers are staggering. If your organization is selling online, it stands to leave a lot of money on the table. A strategy meant to reduce cart abandonment would be a great addition to any e-commerce organization. And we can provide you with a tool that you can implement such a strategy with. But more on that later.
What causes people to abandon shopping carts?
Let’s start off with the more light-hearted reasons. There will always be a proportion of abandoned carts, no matter what you will do. This happens because of the way people explore and shop. Some users are just window shopping, others are comparing prices, others are gathering gift ideas, others are simply saving items for later. We’ll put these types of users into the “just looking” category.
Now let’s dive into the more serious reasons someone abandons their online shopping cart.
1) Extra costs
This is by far the most common reason for cart abandonment. If the price on your product page differs by a lot from the one on the checkput page, most likely, the cart will be abandoned. And when we say “likely”, we mean a 50% probability. What this means is that the extra costs of ordering those products online should be extremely visible. Sure, people do understand that there are certain costs associated with ordering online, like transport costs, taxes, packaging fees or handling costs.
However, when it comes to their own credit card, emotions can run high. The best solution for this is to be up front about the extra costs. There is also a category of people who are just waiting for a better offer. Some online shops have remarketing or cart reminder schemes that can offer users a discount for completing a purchase or using a certain payment method – and this type of users are waiting for just that: a discount, a better deal.
2) Complicated procedures when completing orders
According to Baymard, a compounded 49% of American shoppers will abandon their cart if the checkout process is too complicated (21%) or if the website requires users to create an account (28%). What this means is that online forms that are too long (more than 7-8 fields) will most likely deter shoppers. It probably refers to the same state of mind from when we have to fill in complicated forms at the doctor’s, at public offices or for our businesses – it’s just tedious.
Also, some users just don’t want to create ANOTHER account on ANOTHER website, especially since they are only looking to buy something THAT ONE TIME. People know that they don’t want their data lying around on some server or their email addresses cluttered with EVEN MORE promotional messages. This also has to do with tediousness. Not to mention that sometimes, the necessary information is complicated or is not readily available – like postal codes, account numbers or other codes. Users would need help with these aspects
3) Technical issues
One of the situations in which users would abandon the cart is the one where there are technical problems involved. Some issues during checkout that shoppers frequently encounter are page errors, bugs, connectivity issues or misunderstandings caused by confusing text.
For some users, simply encountering such situations can cause them to abandon the cart. For some shoppers, this can be perceived as a lack of credibility. For some, technical issues can trigger a fear reaction – they most likely fear that if there is something wrong with the website, their bank account can be affected if they go ahead with checkout.
4) Support seeming unavailable
Words can mean different things to different people, especially if your shop sells cross-border. Your users can have questions or some things can be unclear and there is no visual indicator of support being readily available. Ideally, your users will find a chat icon or some other visual cue that customer support reps are on site. Users generally want questions answered on the spot so the purchase can also be made on the spot.
Some users can have questions or will need help in connection to payment methods and options. Shoppers can require further information, some will need guidance while others will need reassurances about security protocols and policies.
E-mail or phone support can be readily available but the general perception is that they are not 100% immediate. With phones, there could be an agent picking up a call immediately but there could also happen that either no one answers or your call will be put on hold. E-mails are also a good support option, but an answer can sometimes take too long. It definitely is not instant.
How live chat can help reduce shopping cart abandonment
1) On-site immediate support
Live chat allows you to interact directly and in real time with shoppers undertaking the checkout process. This will probably turn some of them away from the decision to abandon the cart. Having their issues taken care of increases your chances of getting the sale.
Also, you can offer your assistance proactively. With the proactive chat function, you can prompt the indecisive shopper or the user who spends too much time in the process with an offer for help.
What is best in these types of scenarios – live chat doesn’t require any media or device switch, unlike what happens with phone or e-mail support, it is always available and extremely accessible to everyone.
2) Visual support
The co-browsing feature enables collaborative chat – customer service agents can get on the same page with shoppers to solve problems that are sometimes too complicated to explain. Co-browsing software enables support staff to see exactly what the customer is seeing, leading to faster resolution of whatever problem the customer is having. Also, this ensures that the shoppers go correctly through all the steps of the checkout process.
With the audio and video chat function, you can get face to face with your customer and take care of the issue right then and there. Using live audio and video, Live Guide Chat brings a new dimension to online customer service. With a simple click, website visitors can communicate with your service agents using text chat and then switch seamlessly to audio and video. This increases both trust levels and provides a more personal service to shoppers.
When you segment your campaigns and operators, you can provide support tailored to your audience. Live chat improves personalization of the support experience using information that has already been collected. This way, your shoppers will get their exact problem solved without getting transferred from one department to the other. Given that with Live Guide Chat you can have an unlimited number of campaigns, you can have specific operators strictly for the checkout page. Problem solved.
Naturally, Live Guide Chat is not a magic-bullet solution. Your online shop should be as technically sound and as finely optimized for customers as possible. However, live chat software can help your shoppers in certain situations that they will have a harder time solving with other contact options. With live chat, your users can get their problems solved quickly and can receive support during critical moments in the checkout process. It really is worth it.
Don’t take our word for it. Try Live Guide Chat for FREE and reduce cart abandonment
Live Guide Chat offers a tailor-made chat solution that will enable you to offer live chat everywhere. Contact us today for a live demo of Live Guide Chat or start a free trial to see for yourself how chat will reduce shopping cart abandonment
Netop develops and sells market leading software solutions, enabling quick, secure and easy transfer of video, sound and data between two or more computers. We have done this for more than 30 years and we have used this knowledge to make Live Guide the most secure and reliable solution on the market. Live Guide helps companies deliver excellent customer service, reduce support costs comply with strict security demands.