Although eCommerce continues to boom it’s fair to say that retailers are yet to develop a foolproof solution to basket abandonment. Experian’s most recent research has shown that a staggering £1billion worth of online transactions were abandoned by UK online shoppers during 2011. Meanwhile, Econsultancy has confirmed that even Black Friday and Cyber Monday have failed to buck the trend, with  62.31% of shoppers still failing to complete their transactions on these peak online shopping days.

Clearly this is an issue retailers are keen to address. Abandonment is attributable to a number of factors and must be dealt with holistically. The good news is that a number of tools in the Locayta Freestyle Merchandising® portfolio can help you minimise those lost transactions and maximise your conversions and average order values.

Locayta - Merchandising and Search Solutions

What causes cart abandonment?

There has been extensive research in this area and the same issues crop up again and again. Unexpected or high delivery charges, technical inefficiency and unnecessarily long user journeys all figure in the mix. Compulsory registration and a lack of different payment methods are also key factors. Econsultancy have published this handy little graph that shows the issues at a glance.

graph_2-blog-full

When your customers have abandoned their basket, don’t give up hope  on them. Although 66% of shoppers do shy away from completing transactions, the evidence shows that retargeting can bring approximately 20% of those shoppers back to your site. What’s more, return shoppers spend on average 55% more than first time shoppers, plus they also represent a lower acquisition cost. So it’s well worth taking the time to focus on a retargeting strategy.

Locayta Behavioural Targeting can help you maximise the efficiency of your approach in this area. Using behavioural algorithms, this tool reviews the past behaviour of your lapsed shoppers and then uses that information to send the promotions and information that is most likely to entice them back. Some common applications of the software include: targeted promotions based on previous selections, highlighting promotional offers (for instance free shipping or faster delivery if ordered now) or cross and upselling.

Behavioural-Retargetting-V2

Enhance return conversions with display advertising

When you’re retargeting lapsed shoppers it’s crucial that you drive them to exactly the right messages and CTAs on your site to make sure motivated to take the plunge. Locayta Display Advertising – part of the Visual Merchandising portfolio – is a clever and user friendly tool that equips you to publish user responsive messages. Via the simple dashboard you can set up and manage a wide variety of promotional options – including the ability to adapt your ads and promotions to the returning individual user’s past and present behaviour. It’s a great tool for converting lapsed shoppers – but also a brilliant system for maximising your visual merchandising strategy and promoting the lines you really want to push at that time.

boohoo sale

Never underestimate the power of product recommendations

Whilst payment and delivery issues rank highly on the cart abandonment list of dos and don’ts, you can see from the chart below that product recommendations are still vital to 32% of shoppers in terms of what they want to see at the checkout.

graph_1-blog-full

But you need to get intelligent about your strategy to ensure your recommendations are relevant, enticing and profitable.

Traditional ecommerce engines still rely heavily on database information and will tend to display products in the order in which they are listed in the back end. Don’t fall into that trap – you’ll annoy and alienate shoppers when you get it wrong. Instead, take a look at Locayta Product Recommendations. Proven time and time again to increase conversions for our clients, this technology matches recommended products not just to the search criteria category but to the finer nuances of the user’s profile and behaviour – for instance spending brackets and brand preferences. What’s more, once configured it does this automatically, meaning that you can enjoy optimal site performance even when your own finger is away from the button.

Product recommendations

We’ve achieved average conversion increases of 19% across our client portfolio – and that includes the likes of Prezzybox, boohoo.com and Superdry. If you’re as passionate as us about making cart abandonment a thing of the past explore Freestyle Merchandising now. It’s sophisticated, cost effective and proven to achieve an impressive ROI. Just contact us to find out more.