When was the last time you looked at your Shopping Cart Abandonment report in NetSuite?
Did you know that NetSuite distinguishes between Cart Abandonment and Checkout Abandonment? What’s the difference, and which of these metrics should you be paying attention to?
Pct Checkout Abandonment (number of checkouts created minus orders submitted, divided by the number of checkouts created). This metric only includes shoppers that entered the checkout process, so it will naturally be a lower rate, however it is useful to know the rate at which more serious shoppers abandoned their cart, since they were already in the checkout process.
Pct Cart Abandonment (number of carts created minus orders submitted, divided by carts created). This includes all shoppers that added an item to their cart but did not checkout, regardless of “when” they abandoned their cart. This is the accepted definition of cart abandonment, and so is the metric you should use to evaluate cart abandonment on your e-commerce site.
Most importantly, the next question is: what can you do about it?
Problems and Opportunities
The Baymard Institute, an independent e-commerce research company, reviewed 33 different studies over the last decade showing that on average, 68% of online shopping carts are abandoned. And that number may be rising, according to current real-time rates reported by Listrak.
This means that for every 100 customers shopping on your ecommerce site, 68 of them are putting items in their shopping cart but then leaving without completing the purchase. Only 32 of them actually checkout.
It also means that for every $10,000 of revenue coming from your store, you’re losing more than twice that amount in potential revenue.
How is that possible? Assuming that your ecommerce store has a 68% cart abandonment rate, your actual revenue is 32% of what’s “possible”. Using the formula (Revenue / 32) * Cart Abandonment Rate, you can see that you’re losing $21,125 in potential revenue: (10,000 / 32) x 68 = $21,250. And that’s assuming that your cart abandonment rate is “only” 68%.
Of course, shopping cart abandonment is a fact of life, and it wouldn’t be realistic to expect to convert all 68% of those customers and all $21,250 of that revenue, no matter what you do. But if you could recover even 15% of that, it would be a significant opportunity. Let’s say your current monthly revenue is $50,000. With an improvement of 15%, or $7,500/month, your sales would increase by $90,000/year.
It's All About Communication
There are many reasons why shoppers don’t complete a purchase, including unexpectedly high shipping costs, overall price issues, website usability issues, and other reasons. Once you’ve identified and dealt with any pricing or website issues (do you have a mobile responsive site yet?), it’s time to consider how you can communicate with the customer and bring them back to their cart.
NXTurn has just released a new bundle to help you reduce cart abandonment and convert more customers. Our solution addresses the key features and requirements for successful cart abandonment emails:
- Timing: Send as many emails as you like, defined by the number of days after a cart is abandoned.
- Messaging: Use different email templates for each cart abandonment email to be sent out.
- Mobile aware: Use our mobile-responsive email template, customized for your messaging, or a template that you’ve created.
- Incentives: Optionally include a promo code to persuade customers to return to their cart and complete the purchase.
- Reporting: Track the emails sent from a saved search your dashboard and view the email sent from the Communication tab of the customer record. We can also include tracking code in your email template so that you can track conversions in your Google Analytics account.
- Ease of Setup: Configure or change the bundle settings right from your dashboard.
Contact us to start recovering your lost revenue from cart abandonment!
For more information about NXTurn, contact our sales department at (888) 450-3330 ext. 307 / firstname.lastname@example.org.
Since 2005, NXTurn has assisted hundreds of NetSuites customers with quality implementation, support, customization, integration and eCommerce services. NXTurn is a leading provider for NetSuite’s on-demand, integrated business management software for growing and midsize businesses and NXTurn provides a fast, cost effective, reliable way to integrate and manage external applications and data with your NetSuite account.
Posted by Cecelia Quilty and Marcy Rudowitz Comments (0)