I wanted to post a follow-up to yesterday's post regarding shopping cart abandonment rate to provide a real-life example of why shopping cart abandonment matters.
I have a new client‚Äîwe'll call them "Client A"‚Äîthat recently asked me to improve their conversion rate. There was one problem, though. Client A didn't have a web analytics package in place to accurately measure their conversion rate. After installing Google Analytics on Client A's site and configuring a checkout funnel, we found that their cart abandonment rate was a whopping 87% (industry average is about 60%). This is one case where higher-than-average isn't better.
"Client B", a long-time client, has a much better cart abandonment rate. We've worked for years to improve checkout and get it running as efficiently as possible. After all, Client B doesn't get as much traffic as Client A, so stellar conversion is a must if they want to make money. Client B's cart abandonment rate is currently 19%, so their site is getting 80% of their users that reach the shopping cart past the cart and into checkout.
Client A only sent 1 of 10 people through their shopping cart into checkout while Client B was sending 8 of 10 people through.
Knowing this, I can now turn my attention to solving Client A's cart abandonment problem. We'll try different page designs and process flows until we achieve Client A's goal of getting 4 of 10 customers through to checkout, and this will have a huge impact on revenue.
This, in my opinion, is why monitoring cart abandonment is so valuable. Not only will your site generate more revenue per visitor as your shopping cart abandonment rate decreases, but your ad spend also becomes more effective.