As a digital marketer you are probably entering the New Year with many plans to increase your revenue and general performance from your online operations. I am sure you will be looking at how to increase conversion by optimizing your purchase funnel and reducing the number of people who slip through the cracks.
What keeps retailers up at night?
As much as retailers concern themselves with boosting conversion rates and average order values, shopping cart abandonment is what keeps them up at night. A July 2014 Retention Science survey of US online retailers found that 53.8% of retailers actively tracked shopping cart abandonment metrics.
Shopping cart abandonment is an essential metric to track, yet it isn’t sufficient on its own to explain why potential customers abandon the cart. As we all know, web analytics data is really good at understanding WHAT happened, but in the words of Avinash Kaushik, “it cannot, no matter how much you torture the data, tell you WHY something happened”. To understand why potential customers abandon the cart, it is essential to collect customer feedback. By collecting customer feedback you can understand what are the key purchase barriers and drivers and know which areas are having the biggest impact on your conversion, helping you make sound optimization decisions.
Are you missing root causes of cart abandonment?
Insight into why visitors act the way they do is imperative to pinpoint root causes of site and cart abandonment. Some visitors are there specifically to purchase, others to browse, research or compare. In fact, according to iperceptions research, browsing and price comparison are amongst the top reasons for why online shoppers leave their shopping carts. And on average 80% of people who visit a website with the intent of purchasing do not buy during their session. Furthermore, according to a Google study with Shopper Sciences, 70% of visitors who place an item in a website shopping cart do not actually make a purchase during their session. By inferring behavior made by website visitors based solely on web analytics it is easy to misunderstand and even miss the root causes of cart abandonment. Only by directly asking your visitors can you collect information on customer intentions, frustrations or unmet needs.
The critical ingredient – Customer feedback
It’s essential to understand the difference between who really came to your site with the intent to purchase and who came to your site to research. An understanding of purchasers and their pain points can result in meaningful optimization of the website’s content, its shopping cart, as well as its purchasing process. Alternatively, the motivations and considerations of those who may not be ready to purchase yet are strategic pieces of information that will help an e-commerce website map out its competition and close the purchase loop. For example, by collecting feedback it might become clear that visitors are not ready to purchase because shipping costs were listed too late during the checkout process. Armed with this feedback you can list shipping costs sooner in the checkout process and close the purchase loop.
Customer feedback is the critical ingredient to understanding the reasons why people don’t purchase but also why they do. If you are looking to increase conversion or better understand cart abandonment collecting feedback from your customers is an essential ingredient.