“Q: My online retail customers are disappearing thick and fast. What could be causing this drop in sales conversions?”
As a small retail business, you spend a significant amount on customer acquisition. But recent research from Inside Retail reveals that we have a major commitment problem.
Last year, 76% of shoppers walked away after one bad experience. This year, that number has climbed to 84%. Customers are no longer taking the traditional routes of complaining or filing tickets; they are simply disappearing and abandoning their carts.
“A: The real ‘breaking points’ are no longer happening at the checkout – they are happening after the buy button is hit.”
With online shopping such a central part of any retail strategy, customers abandoning baskets, or cancelling their purchases is a major headache.
But there are plenty of ways to improve your retail customer experience (CX) to mitigate these abandoned carts and the associated loss of sales:
Remove the barrier of shoppers needing a mandatory account: Make it easy for shoppers to check out using a ‘guest account’. 34% of respondents say they abandoned a cart because of forced registration. Allow customers to create an account after the payment is complete, transforming a hurdle into post-purchase convenience.
Be totally transparent about the final price: Show all shipping costs, taxes and fees up front when the customer first views the cart, rather than at the final payment step. Hidden costs are a major reason for abandonment, so providing a real-time shipping calculator prevents the potential price shock that can kill conversions.
Offer multiple payment options: 69% of shoppers may abandon carts that don’t offer their preferred payment methods. It’s sensible to include payment gateways such as PayPal, Apple Pay and Google Pay alongside the more traditional credit/debit card option. This increases the chance of your customer clicking through and paying.
Give the customer a good reason to trust you: Place security badges, clear return policy links and live-chat icons directly within the checkout footer. Anxiety about data security or ‘what if it doesn’t fit?’ worries peak at the moment of payment; these signals provide the final reassurance needed to click ‘Confirm’.
Removing the barriers to cart abandonment and lost sales
With 14.3% of all Australian retail sales now being made online, removing these e-commerce customer experience barriers is a must for any small retail businesses.
Talk to our team about your e-commerce strategy and the key ways you can enhance your customer experience to reduce cart abandonment and unsatisfied customers.
The team at EMspire Advisory are trusted, qualified Chartered Accountants, tax agents, and small business accountants. We work closely with our clients to achieve the best possible outcomes. To find out more, please contact us!
Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.