As E-commerce and online retail continue to grow and more people are purchasing online we also see more and more would be online shoppers abandoning their carts as they go through the checkout process. In fact, according to this week’s ‘Charting Tuesday’ infographic approximately 67% of people abandon their shopping cart right before the transaction is completed.
According to the infographic compiled by Milo: Local Shopping there are 5 major reasons that online shoppers abandon their purchases.
- Just window shopping (not ready to purchase) – 57%
- Saving the items for later – 56%
- Shipping cost was too much – 55%
- Items or amount did not qualify for free shipping – 51%
- Shipping and handling costs were listed too late – 40%
One question that we have received multiple times from clients, here at Virtual Logistics, is if integration can help convert abandoned shopping carts into paying customers. The answer: YES. But then you ask how? The answer is simple but requires three fold integration and a data usage strategy. Integrate your web store to your ERP, as well as your shipping and your marketing automation platforms.
Web Store Integration to your ERP
Web store integration with your ERP is the first step in reducing shopping cart abandonment. By integrating your online store you ensure that customers are receiving the most up to date information from your warehouse in regards to inventory updates and shipment status and tracking. Order information is sent directly from the web store to the ERP system meaning that there is no chance that incorrect information could be entered due to human error. Lastly, once the information is in the ERP system product updates are sent up to the web store once again creating a real time update for the customer. Web store integration with online retailers WMS and ERP platforms also ensures that products are shipped on time and to the correct address through address validation.
Shipping System Integration
Along with integrating your web store integrating your shipping system can also help enhance customer satisfaction. According to the infographic “2/3 of the time online shoppers select the most economical shipping option. For small businesses with online retail stores a flexible and informative shipping or pick up process may be the key to developing repeat business”. You can use shipping system integration to help create this type of policy.
An excellent example is VL’s integration with Canada Post. When e-commerce businesses use Virtual Logistics’ integration they ensure that package tracking and both contract and non-contract label printing are fully integrated to Canada Post web services.
Marketing Automation Integration & Shopping Cart Abandonment
Marketing Automation Integration is probably one of the most important integration processes e-commerce businesses can use. By integrating a marketing automation platform and a web store e-commerce retailers can not only send customer information directly from their web store into their marketing automation software for nurturing, but they can also nurture shoppers that have abandoned their shopping carts. This is where an integration strategy starts to pay off.
Here is a quick example of how Marketing Automation Integration can help an e-commerce retailer combat shopping cart abandonment.
According to the infographic, the most important thing that consumers want to see at checkout is FREE SHIPPING OPTIONS. In fact, 73% of respondents said that they would want to see free shipping options at check out.
Imagine that as an e-commerce retailer you do not offer free shipping options at checkout and you are seeing an increase in shopping cart abandonment. What do you do?
Luckily, your web store and your marketing automation software are integrated which means that you have the customers contact information (email address) as well as the product information that was in the shopping cart when it was abandoned. What can you do to turn this shopping cart abandonment into a purchase?
1) Place the potential customer into a shopping cart abandonment workflow
2) Send an email to the customer reminding them of their purchase and offering them 10% off if they complete the purchase within the next 5 days.
3) If they still have not purchased within 5 days send a second automated email reminding them off their purchase offering a further discount and free shipping if they purchase within the next 48 hours.
With this strategy you will more than likely see an increase in conversion rate by offering these discounts to potential customers.
To find out more about the benefits of Marketing Automation Integration click on the button below to download our web store integration infographic.