Increasing revenue by decreasing online shopping cart abandonment

As retailers develop their multichannel strategies to meet the needs of today's connected consumers, they should give careful consideration to an online shopping cart program.

As retailers develop their multichannel strategies to meet the needs of today's connected consumers, they should give careful consideration to an online shopping cart program. A 2010 study by Forrester Research found that on average, businesses experience a 55 percent shopping cart abandonment rate. An online shopper study by marketing platform provider Bronto Software revealed ways that business can improve their online service and yield a better portion of sales.

"The level of missed revenue for retailers is astounding when you consider that over fifty percent of online transactions end in an abandoned shopping cart," said Jim Davidson, Bronto’s manager of marketing research. "The good news is that much of this revenue can be recovered."

To earn more customer satisfaction and loyalty from online shoppers, companies can try to eliminate some of the roadblocks between browsing and buying. For example, the survey found that on average, shoppers have to go through 5.6 pages from the shopping cart to the order confirmation page. This may be resulting in a high drop-off rate because users get distracted or do not have enough time.

They can also entice them with promotional offers, such as online coupons or free shopping, and promise a secure transaction method, according to Multichannel Merchant. Another untapped strategy is sending post-abandonment emails. The study found that on 13 percent of brands try this and even fewer - just 5 percent - will send a second one.