Many consumers treat online shopping as a form of window shopping, simply adding items to their baskets without ever fully committing. Why is this? Is it a way for us to narrow down the products we are considering without buying? Evie Rusman speaks to Klarna about consumer shopping habits
New research from Klarna and BigCommerce shows that shopping cart abandonment is on the rise, with four in 10 (38%) UK shoppers abandoning a purchase at least once a week.
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In addition, the research suggests a lack of fast and affordable delivery options as the number one reason behind cart abandonment – over half of UK consumers (54%) admitted they have abandoned their online shopping due to delivery frustrations.
The burden of needing to create an account and frustrations with the functionality of a mobile website came second, cited by 32% and 33% respectively as reasons to drop out.
Meanwhile, 27% of consumers have abandoned a purchase because they couldn’t remember their log in details for an existing account, whilst more than a quarter of UK shoppers (26%) admitted they have left a purchase halfway through because they ‘couldn’t be bothered’ to prepare their card details.
Speaking to EPI, Laurel Wolfe, VP marketing at Klarna, discusses how customer expectations are changing, causing abandonment levels to be higher. She says: “Customer expectations are higher than ever before — their demands are greater, and their tolerance is lower. What our research highlights is that today, dropped baskets can happen at any stage of the customer journey and can be due to many factors — from a poorly designed website and a lack of payment options, to security fears and a clunky checkout process.
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By GlobalData“It’s clear that traditional ideas about brand loyalty are changing because of the growth in consumer choice when online shopping. This means that customers will simply abandon their purchase and go elsewhere if a retailer’s online experience fails to measure up.”
Reducing shopping cart abandonment
In order to reduce shopping cart abandonment, Wolfe advises that merchants must be flexible within each stage of the online shopping experience. She also emphasises how finding customer-centric, innovative solutions is the key to success.
She adds: “Although technology has changed how people shop, the mission for retailers should be the same; to create a frictionless shopping experience that is customer-centric, whatever the channel. Ensuring a customer has a positive online experience — from browsing to buying all the way to delivery and returns — is therefore critical to reducing dropped baskets.”
Wolfe continues: “With 37% of consumers citing a simple-to-use website as the top influence over their purchase decisions, retailers must ensure that website functionality is faultless. Having a search function that’s hyper-accurate and autocorrects typos, several delivery options available, a simple returns process and a speedy checkout with multiple payment options all have a big impact. The latter of these is particularly important given that 50% of respondents cited a slow checkout process and 29% said having no alternative payments were top reasons to abandon their shopping cart.
“Personalisation and providing enriched experiences are two other “must haves” in today’s retail world. With 33% of consumers saying personalised offers or discounts would encourage them to shop with an online brand, and 35% revealing they are more likely to shop with a brand or retailer that is associated with fun content and experiences, these are powerful ways for retailers to make their customers feel special and keep them coming back time and time again.”
Hierarchy of shopper needs
Inspired by Abraham Maslow’s hierarchy of needs theory, the report considers the shopper needs retailers must satisfy to gain and retain customers:
- Functionality makes up the foundation of the pyramid as the need that must be met first and foremost, with 37% of respondents saying the ease of using a retailer’s website has the biggest influence over their purchase decisions;
- Safety comes next, with 75% of consumers saying they would be likely to abandon their shopping cart if they did not trust a website’s security;
- Engagement is next as 39% of consumers say good customer service would encourage them to shop again with an online retailer;
- Esteem is further up the pyramid, with 33% noting that personalised offers or discounts would encourage them to shop with an online brand, and
- Enriching experiences is the last step, with 35% of shoppers saying they are more likely to shop with a retailer that is associated with fun content and experiences.
