Retarget Abandoned Carts With Discounts and 72% of Millennials Say They’ll Buy
Shipping costs and required registration are the biggest reasons surveyed consumers say they'll abandon shopping carts, but an average of 54 percent say they'll buy the same goods they've abandoned if they're retargeted with discounts, according to a new e-commerce marketing survey.
About 72 percent of shoppers between the ages of 25 and 34 agree the discounts will work, reads "VWO E-commerce Survey 2014: Trends and Insights to Find and Convert Buyers."
"This age group comprises young professionals and the 'Bargain-Hunting Mama,' " reads the survey's conclusion. "Both consumer sets are traditionally known to respond well to discount offers."
The research released on Nov. 10 provides other tips for frustrated marketers who want shoppers to buy during this holiday season. VWO surveyed more than 1,000 Web shoppers.
Key research findings are that U.S. shoppers abandon carts when they encounter:
- Unexpected shipping costs (28 percent)
- Required creation of a new user account (23 percent)
- Security concerns (13 percent)
"Abandoned carts represent significant lost revenue for merchants—as many as 70 percent of carts are abandoned," the study attributes to Meg Murphy, CMO of Austin, Texas-based e-commerce platform provider Bigcommerce. "We coach our clients on three key ways to reduce abandoned carts."
Murphy's suggestions are:
1. Add interactive tools to aid in purchasing decisions;
2. Improve site search functionality; and
3. Provide shipping policies and estimates as early as possible in the checkout process. (According to the survey, 24 percent of shoppers "are willing to spend extra and buy more in order to qualify for free shipping.")
Bonus tips: Retarget, offer guest check-in options, simplify checkout, use "trust indicators" to stave off security concerns and use A/B testing to increase conversion rates. VWO says most e-commerce sites have a 3 percent conversion rate.
To up that percentage, VWO also advises retargeting. As for millennials, the research shows 60 percent of the 25- to 34-year-old shoppers have apps. (So for this group, consider retargeting them in mobile. About 37 percent of shoppers in the 18- to 24-year-old age group "do most of their shopping on mobile/tablets," reads the survey.)