Recovering lost customers online

The nation’s largest grocery conference took place in Las Vegas from Feb 10-15. Large regional chains and smaller markets around the country have come together in one place to celebrate the contributions they have made to the overall success of the grocery industry.

Pathover team met with grocery leaders of the community, retailers and technology solution providers to share best practices and consumer behavior trends based on both analytical data and real world examples.  The ability for IGA and NGA members to quickly adapt to the fast-changing grocery landscape to enable extraordinary shopper experiences is the true point of differentiation for these independent grocery retailers.

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Pathover team member Tea and Ryan chatted with IGA chairman & CEO Mark Batenic

This year’s topic explores the transition of shopper behavior from traditional to digital while continuously delivering exceptional values in the millennial and multigenerational world.

Many grocers have already invested in establishing a web presence, and for some, they went so far as to offer online grocery shopping, whether it is for in-store pick up or for home delivery. However, having an e-commerce presence alone is not sufficient to increase online sales volume. Shopping cart abandonment is extremely common in online shopping; understanding why it happens and how to recover these lost shoppers are critical in building a successful online shopping offering.

Why Customers Abandon Online Shopping Cart?

Even though the e-commerce market is growing rapidly, online retailers should embrace the fact that, the average online shopping cart abandonment rate is 68.81%. For first-time website visitors, the rate is shockingly high–99%–with the truth that 75% of them who abandon indeed intended to make purchases. You may question, why they still leave?

Without Free Delivery Option

According to UPS’s research, 54% of U.S. online visitors abandoned their shopping carts as the shipping costs made the total purchase cost more than expected. 50% of them said that they didn’t make the purchase immediately because they wanted to get an idea of the total cost with shipping to compare against other sites. Also, 44% of the visitors left because their order values weren’t large enough to qualify for free shipping. Another statistic also shows that 35.7% of the e-commerce abandonment happen when shoppers see the shipping costs. This shows how price-sensitive online shoppers could be especially when it comes to shipping cost that doesn’t add any value to consumers. Therefore, failure of providing free shipping option could potentially lead to a higher rate of e-commerce abandonment.

Lack of Streamlined Website Navigation

Based on Statista, 25% of online shoppers abandoned the cart when the website navigation was too complicated; 21% abandon when the process was taking too long.

In the whole navigation process, the check-out stage is the most critical part and meanwhile, impacts severely on the e-commerce abandonment. Research indicates that 46.1% of cart abandonments occur at the payment stage. In addition, 37.4% occur at the checkout log in. That’s why a seamless process, particularly at the stage of payment is very significant to intrigue customers to make immediate purchases with a pleasant navigation experience.

Consumers are Not Ready!

Suppose that the online retailers have made everything perfect to enhance shoppers’ experience, will all the visitors press the buy button? The answer is NO. 49% of online visitor stated that they abandoned the shopping cart because they were not ready to purchase but just wanted to save the cart for later. It’s understandable that consumers need more time to make the purchasing decision due to various reasons, such as needing to consult with significant others or with insufficient budgets to buy now. What online retailers could actually do is to actively follow up with the consumers—by researching on the reasons behind their cart abandonment and reminding them to buy—via display ad retargeting, email remarketing or other channels. This facilitates online retailers to gradually earn customers back and convert their interests into sales.

Online shopping cart abandonment is unavoidable but can be continuously improved. The fundamental solution for online retailers is to completely understand different customers’ needs when visiting the websites, improve the causes that prevent customers from buying immediately, and finally to attract these customers back with solutions.

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Pathover helps automate all the manual processes to save time and cost so that any supermarket in the nation can offer its own online grocery shopping and free delivery to its consumers from its own website. Stores maintain their strong store brand while being able to use similar technologies as what Amazon or Walmart have built.

Join the movement at pathover.com or contact us at partnerships@pathover.com

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