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It's a thing all Shopify merchants have had to deal with. The customer walks into the shop, searches for an ideal product, puts it into the shopping cart and leaves without buying it. It's aggravating because the toughest part of getting someone interested in your project is already done.
However, the sale doesn't take place. Baymard Institute stats cited by Shopify show that online shopping cart abandonment rates are typically around 70%, which translates to seven of every ten shopping carts being abandoned before checkout.
Abandoned carts aren't necessarily lost customers. There are a number of people who just need one more thing to complete a purchase. It's here that smart incentives come into play. Focusing on more targeted ways to encourage customers to spend with targeted rewards, BOGO Shopify campaigns, free gifts, shipping thresholds and more short-term promotions can be a better strategy for both Shopify merchants and customers to keep profits intact.
One of the largest revenue drains in ecommerce is from lost carts. Today, customers will shop around and buy from more than one store, they'll use multiple devices to research and look around, and they'll abandon shopping carts just because they're still considering their options. Some get frustrated by the checkout process being too complicated and/or unexpected expenses at the end.
The 1% conversion killer is still unexpected shipping costs. The customer can impulsively add $60 worth of items to his cart without realizing that there are an additional $15 shipping charges at checkout. When customers are taken aback by the purchase, it is immediately altered in their mind.
Not all abandoned shopping carts are due to problems. In some cases, people just require a greater impetus to make a purchase rather than a postponement.
That's where incentives are going to be strong. A strong offer can make a difference and help move people from the fence, without causing permanent price declines.
There's hardly any promotion that has been as consistent as BOGO Shopify promotions.
The “Buy One, Get One Free” incentive obviously resonates more with the customer than other percentage incentives, because it's the feeling of getting something for free that motivates them to buy it.
BOGO promotions are ideal for:
Beauty products
Supplements
Fashion accessories
Home essentials
Junk food and other items that contain food.Food and drink items.
But rather than discount, merchants add value to perceived value by providing more to customers.
An effective way to do this is with a freebie when they hit a certain cart value.
For example:
Get a free sample when you spend $50.
You can purchase an accessory for $100 and get a better one!
Purchase two products, and receive a special bonus product!
It's a technique that stimulates customers to buy more and generate excitement at the checkout.
These campaigns can be automated with apps such as Monk Free Gift with Purchase, which enable merchants to set up the gift to be sent automatically based on cart rules instead of needing to do so manually.
One of the best incentives for shopping online is free shipping.
Instead of free shipping on all orders, merchants can set a minimum order amount.
For example:
Free shipping over $75
Often customers will add another product just to remove shipping costs to boost the average order value and conversion rates.
Incentives are more effective with visual progress indicators.
A progress bar will inform customers how close they are to receiving their rewards, rather than just showing a shipping policy.
For example:
“You can have a FREE gift just $12 away!”
This provides a little mental challenge for all the shoppers and they are just inclined to do it.
Urgency is yet another effective factor that drives conversions.
Countdown timers and limited time promotions help to cut down on procrastination by setting a time limit for customers.
Consumers are not only encouraged to buy now, but even on the same day, before the deal is over.
Human nature is to get something additional.
While the price point may be comparable, “Buy One Get One” is generally better than regular discounts because the customer feels they are getting a free thing as opposed to a discount.
Additionally, BOGO campaigns can help to ensure the brand's value is maintained, as well as induce larger purchases. Great value can be achieved without cutting prices with additional products offered by premium brands.
For Shopify merchants, it translates to increased conversion rates without forcing customers to get used to the discounts.
As a store expands, it becomes a challenge to keep up with promoting the store manually.
Today's Shopify incentive apps enable retailers to:
Buy one, get one free: automatically push offers.BOGO
Add additional free gifts depending on the cart value
Display progress bars
Schedule promotional campaigns
Create product-specific rewards
Tailor products to customer segment
Automation ensures that all eligible customers are targeted with the right promotion and workload on operations is reduced.
The better way to do it is to use smart incentives that add value to the customer experience rather than burden customers.
To assist you with these best practices, here are a few tips:
Simplify and make promotional messages understandable.
Be sure to showcase rewards early in the shopping process.
Be clear about requirements for qualification.
Don't load the offers into the system at the same time.
Try various incentives to see which will resonate with your audience.
Regularly track conversion rate, average order value and abandoned cart recovery.
These are just a few of the metrics that can help bring in a lot of money in the long run with some minor tweaks.
Cart abandonment is always going to be a part of ecommerce, but that doesn't mean it will continue to cost you a ton of money. With a deeper insight into the reasons behind cart abandonment and the right incentives, Shopify stores can convert abandoned carts into actual sales.
From the BOGO Shopify campaign to free gift with purchase to free shipping thresholds and personalized rewards, the right incentive will help customers to finally make it to the checkout page.
1. What is the ecommerce average cart abandonment rate for Shopify?
The typical ecommerce abandonment rate is typically about 70%, though it can differ by industry, device, and checkout experience.
2. What is the reason for certain products being inexpensive?
Yes. Perceived value is boosted with buy one get one incentives; they are also generally better than percentage discounts because instead of the customer paying less they are getting a complimentary product.
3. How many times should Shopify retailers experiment with various incentives?
It's important for merchants to A/B test incentives on a regular basis, particularly when it comes to seasonal sales and new product releases.
4. Will personalized incentives be more effective at combating cart abandonment than general discounts?
Yes. Personalized offers are more relevant to shoppers and can result in increased conversion rates.
5. Which of the following should merchants monitor once the campaigns are launched?
Monitor cart abandonment rate, conversion rate, average order value (AOV) and recovered cart revenue to gauge success.
