Understanding Abandoned Carts in E-Commerce
Packaging Industry | Sr. UX Researcher
Tools Used: FullStory | Typeform | Microsoft Teams
Overview
The goal of this study was to better understand the reasons our customers are abandoning their carts in order to improve revenue lost from these abandoned carts, as well as to identify areas for improvement on the purchasing platform that may lead customers to contact customer service before or after placing an order.
Research Methods
Data Analytics | A deep dive to analyze page load times and how many products users had in their cart before abandoning them.
Secondary Research | A review of existing literature and data was conducted to gather insights into cart abandonment trends and customer behaviors. This included analyzing industry reports, competitor practices, and best practices in e-commerce.
User Interviews | In-depth qualitative interviews were conducted with a sample of customers which allowed us to gather specific insights into their experiences, challenges, and pain points encountered during the purchasing process.
User Survey | A structured survey was distributed to a wider audience of customers. The survey aimed to quantify reasons for cart abandonment and assess customer satisfaction with the purchasing platform. This method provided valuable statistical data to complement the qualitative insights from the user interviews.
Our Assumptions Regarding Reasons for Abandoned Carts
Price Checking | Customers may add items to their cart to check prices without the intention of completing a purchase.
Offline Orders | It's possible that customers are gathering product information online and then placing their orders offline.
Address Errors | Customers might abandon their carts after realizing they selected the wrong delivery address and prefer to start over with a fresh cart.
ERP Cross-referencing | Some customers could be cross-referencing information with their Enterprise Resource Planning (ERP) systems for product details and pricing before finalizing their order.
Product Availability | There may be situations where customers begin filling their cart but cannot find a specific item they are looking for, leading to cart abandonment.
Urgent Needs | Customers might need products sooner than our delivery options allow, prompting them to leave the site.
Partially Filled Cart | Certain customers may take their time filling the cart, indicating they are not fully ready to complete their order yet.
In 30 days, there were 82 abandoned carts on our platform.
73% of abandoned carts contained only one product, while 27% had two or more products.
After reviewing page load times for the cart and checkout over 30 days, we found most users had to wait over 3 seconds after clicking the "Proceed to Checkout" button.
Secondary Research | Baymard’s Study on Cart Abandonment
The Baymard Institute's study on cart abandonment reveals several key factors influencing why users abandon their shopping carts.
These insights shed light on user behavior and underscore the importance of streamlining the online shopping experience to reduce cart abandonment rates. Addressing these issues can lead to improved conversion rates and customer satisfaction in e-commerce settings.
Secondary Research | Best UX Practices to Reduce Abandoned Carts in Online Shopping
Abandoned carts are a significant challenge for e-commerce businesses. Implementing effective UX (user experience) best practices can help minimize this issue and improve overall conversion rates.
Optimize Page Loads | Ensure that all pages load in no more than 3 seconds to reduce bounce rates and improve user engagement.
Live Chat Option | Offer a live chat feature that allows customers to get immediate assistance during their shopping journey.
Transparent Product Availability | Communicate product availability proactively to manage customer expectations effectively.
Clear Call-to-Action Buttons | Implement prominent and clear Call-to-Action (CTA) buttons throughout the site to guide users toward desired actions.
Side Slider for Cart | Consider implementing a side slider for the shopping cart, allowing users to view and edit their selections without leaving the current page.
Security Badges | Display security badges to instill confidence in customers regarding the safety of their personal and payment information.
Wishlist Feature | Allow users to save items to a wishlist for future reference, enhancing their shopping experience.
“Save for Later” Option | Include a “Save” feature that lets customers hold items in their cart for later purchase.
Eliminate Checkout Ads | Remove any distracting ads during the checkout process to streamline the experience.
Cost Transparency | Provide clear information regarding all costs, including fees, taxes, and shipping, to prevent surprises during checkout.
Easy Cart Editing | Ensure that users can easily edit their cart items, making adjustments simple and quick.
Success Alerts | Utilize clear alerts after adding items to the cart, confirming the action to users.
Visible Return Policy | Make your return policy easily accessible and straightforward to enhance customer confidence in their purchases.
Secondary Research | Email Campaign Tips to Reduce Abandoned Carts in Online Shopping
Timely Reminders | Schedule your emails to be sent at intervals of 1 hour, 24 hours, and 72 hours. This creates a consistent follow-up plan that can keep your products fresh in the minds of potential customers.
Create Urgency | Use compelling language to instill a sense of urgency. Phrases like "limited time offer" or "only a few left in stock" can motivate recipients to make a purchase sooner rather than later.
Cart Summary & CTA | Always include a clear summary of the items in the recipient's cart. Make sure to incorporate a prominent call-to-action (CTA) button that directs them back to their cart, making it easy for them to complete their purchase.
Cross-Selling Suggestions | Enhance the shopping experience by including product recommendations related to the items in the cart. This can increase the average order value and present customers with options they may have overlooked.
Cautious Discounting | While discounts can be effective in encouraging purchases, use them judiciously. Offering discounts too frequently may devalue your products over time. Aim for strategic promotions that feel exclusive or seasonal.
By following these best practices, you can create an effective email campaign that drives conversions and builds customer loyalty.
User Survey | Insights Related to our Assumptions for Why Customers Abandon Their Carts
By surveying a total of 8 customers, I was able to identify which of our assumptions are most relevant to our customers’ purchasing behavior.
User Survey | Customers were asked which abandoned cart emails they would likely interact with.
Customers were presented with five potential email subject lines they might receive if they abandoned their cart and asked to select the top two email subject lines they’d be more likely to interact with and/or click.
75% of customers chose the “Don’t forget your [company name] cart items.”
50% of customers also chose the “You’re almost there. Prepaid freight awaits!”
User Survey | Customers were asked which pop-ups for abandoned carts they would likely interact with.
Customers were presented with 5 popup messages and asked to select the top two messages they’d be more likely to interact with and/or click.
50% of customers said they would click the “Not so fast!” modal.
50% of customers said they would click the “Leaving so soon?” modal.
User Interviews | Customer Purchasing Behavior & Needs
According to the data, 100% of customers indicated that they place orders immediately based on their purchase orders (POs) rather than taking the time to accumulate items in their carts over a longer period. This direct approach suggests that efficiency in fulfilling specific needs is a critical factor for our customer base.
Furthermore, 50% of customers acknowledged that they add items to their carts primarily to check prices, reflecting a tendency to utilize the cart as a temporary reference point rather than a space for deliberate shopping. This finding is corroborated by survey results included in the report, where 50% affirmed using the cart for price verification.
Notably, no one interviewed expressed the need for an option to "Save for later", indicating that the concept of delaying purchase decisions in the cart is not a prevalent behavior among our users. This insight may inform future strategies for product placement & promotional efforts on our platform.
Poor transparency in product information and communication about order updates on our e-commerce platform can greatly affect customer satisfaction and trust.
When customers add items to their cart, they often expect accurate and up-to-date information regarding product availability. However, if this information is not provided upfront, it may lead to frustration and confusion.
Additionally, estimated lead times play a crucial role in the purchasing decision. If these estimates are inaccurate, customers may experience unexpected delays, resulting in increased inquiries to our customer service team. This not only strains our resources but also detracts from the overall shopping experience.
Moreover, communication regarding order updates is essential, especially for delayed items. Customers should receive timely notifications that include revised estimated delivery date ranges. Transparency in these areas will enhance customer trust and streamline interactions, ultimately improving our service quality. Addressing these transparency issues is vital for maintaining a positive customer relationship and fostering loyalty.
Customers want a stronger and more dependable connection to our Customer Service team. Many feel unsure about who to reach out to for help.
All customers said that they preferred to communicate by phone. The main reasons for contacting customer service included the following:
To Modify an Existing Order | As situations change, customers need a straightforward way to adjust their purchases.
To inquire about Pricing | Clear and prompt communication regarding pricing is essential for customer satisfaction.
Request Updates on Delayed Orders | Customers value timely information about their order status, especially during delays.
“I'm old school. I can get a whole lot more done talking to somebody real fast then me spending 20 minutes on emails going back and forth. You know, that's just a waste of my time.” - Customer
Recommendations
Implement a message during the checkout flow that prompts users with "Does everything look correct?" This message should appear after a user reviews their cart, allowing them to verify the items and quantities added, as well as ensure the correct shipping address is selected.
Investigate the slow page load issue on the “Proceed to Checkout” step. This may involve analyzing the page's code, assessing server performance, and optimizing elements such as images and scripts to enhance loading times.
Provide clear information about product availability and estimated lead times throughout the purchasing journey. Maintain consistency by ensuring that lead times displayed during the checkout process align with those shown during initial product selection, avoiding discrepancies.
Place a prominent reminder on each product page that displays the assigned customer service representative and sales contact details, including their phone number and email. Update this information promptly to reflect any changes in personnel.
Consider adding a feature that allows users to request the addition of new products for purchase on the platform. This request would automatically notify the assigned customer service or sales representative, who can then take appropriate action. Users should receive a notification once the requested product has been made available on the platform.