Online shopping websites have existed for a long time and site owners have struggled to recoup shoppers who have abandoned their orders. A list of abandoned orders, along with the associated lost money, is what really pains site owners. A few months back, I mentioned some methods to address cart abandonment. Let’s now look at the reasons why customers abandon their orders.
There are thousands of articles and statistics about mobile devices. Everything that can be done on the computer can now also be done on a smartphone or tablet. This includes shopping. Your site is losing money if it doesn’t have a mobile-friendly version. Your site may be visited by customers who then attempt to place orders but abandon them when the checkout screen is not compatible with mobile/tablet devices. This issue can be fixed quickly with responsive design. Responsive design sites look amazing on all devices. When responsive design is used on your website, separate mobile design themes/templates don’t need to be created. Does site design have a direct correlation to cart abandonment rates that are lower? Yes, again and again. Take a look at your website on your smartphone. Is it amazing? Is everything working? Is it easy for customers to check out? If the answers to any of these questions are not yes, you need to reconsider your site design. This will increase your conversion rates.
Why is it that shoppers don’t complete their purchase? Complexity. Too many clicks and steps to reach the payment screen. Is it still necessary for customers to create an account in order to complete a purchase? This is unnecessary and a barrier to order fulfillment. It is important to gather data about your customers for remarketing purposes, but not at the cost of order fulfillment. First, get the order. Then, through email marketing and messaging on the order receipt, create a call-to-action for the customer to return to the site to complete their account.
You should also examine the actual payment process. Is it necessary for customers to go to another site to input credit card information and then return to your website to finish the order? This is not ideal. There are too many steps for customers to miss during the order process. You might consider a payment method that does not require customers to leave your website. When using onsite payment methods, cart abandonment rates are lower.
It is possible to understand the reasons behind cart abandonment and make improvements to your website.
Ecommerce: Make Your Customers Spend More
Ecommerce stores must aim to generate more revenue over the long-term. Profits and revenue growth depends on not only achieving the primary sale but also ensuring that each sale has an average order value. It is possible to achieve this goal by careful planning and effective implementation.
Many business owners know what their revenue goals should be, but few actually translate that information into tangible and quantifiable numbers. This is the key to reaching your goals in the first place.
If the goal is not measured and tested, how can a plan be designed to achieve it? It can’t. According to an old management saying, you cannot manage what is not measured.
To get customers to spend more, it is important to have a plan. If there is no realistic goal and all figures are measured, it may be difficult, if not impossible, to achieve that goal.
These strategies can be used to increase average order values. These are four ways to make customers spend more.
1) Increase product price
The best way to make customers spend more money is to increase the price of your products. It is important to understand the market and know what prices other competitors are charging for their products.
If the business is able to offer a similar product or an identical product at a premium pricing, it can work. However, the business must differentiate itself from its competitors and give customers a reason for the premium price.
You can do this by demonstrating outstanding customer service (no hassle returns and free shipping), and backing it up with actions.
2) Cross-selling of similar products
Cross-selling products because a store can is bad business. This happens more often than it should. Storeowners will cross-sell products to increase their sales. They believe that if a customer doesn’t like the product they are viewing, they will click on another product. This works well when the products are similar, but it often reverses when there is little in common.
Cross selling requires that customers ask the question, “Would a customer click on a set of batteries if they were looking at a shirt or pants?” The two categories are not related, so it is unlikely.
Cross selling should have the primary goal to increase customer’s average order values by offering them an related item that they can add to their cart along with the item they are currently considering. Cross-selling batteries to customers who are also looking at radios is an option. Selling socks, shoes, or ties that match the shirt and pants they are looking at is also a better option.
3) No Shipping Charges for Constraints
Free shipping is a fact. The majority of Internet shoppers expect some form of free shipping. You can take advantage of this consumer psychology to increase your average order value and offer free shipping to orders above a certain amount. Consider offering free shipping to all orders over $45 if your goal is to encourage customers to spend more than $45
4) Create product packages
Combining products that are more expensive when purchased separately is a great way to increase your average order value. Take Apple iPods, for example. Imagine a store selling an iPod Nano at $149.95 and a car adapter at $54.95 (a separate cross-sell). Although these items can be bought together, customers would still have to pay $204.90 if they were purchased separately. A store can increase the average order value by creating a bundle product that includes both products for $175. This will take it from $149.95 to $175. It’s cross-selling at a discount. Customers will be able to see this offer as a great deal if it is priced correctly and planned carefully.
These are just some of the many ways that stores can increase their average order value, thereby attracting more customers and increasing revenues. Stores can increase their average order value by targeting current traffic levels. This will help them reach their ultimate revenue goals.