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Reducing Cart Abandonment


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  • 1. Reducing Cart Abandonment:4 Main reasons why customers leave your shopping cart andhow a few tweaks can stop the leak#webclinic
  • 2. #webclinicJOIN THE CONVERSATION ON TWITTER#webclinic
  • 3. Who’s With Us
  • 4. #webclinic4TODAY’S PRESENTERDr. Flint McGlaughlin – Managing Director, MECLABSFlint McGlaughlin is the Managing Director of MECLABS Group. Theorganization has partnered with key market leaders including TheNew York Times, Microsoft Corporation, and Reuters Group.Dr. McGlaughlin also serves as the Director of Enterprise Research atthe Transforming Business Institute, University of Cambridge (UK), asthe Chairman of the Board of Governors for St. Stephen’s University,and as a Trustee for Westminster Theological Centre. Dr. McGlaughlinoriginally studied Philosophy and Theology at the University ofLondon’s Specialist Jesuit College.Today, his primary research is focused on enterprise as transformativeagent. His work has won multiple awards and has been quoted inmore than 13,000 online and offline sources.
  • 5. #webclinic5An Experiment
  • 6. #webclinic6EXPERIMENT: BACKGROUNDBackground: A company offering competitively priced, easily accessiblestorage space for residential and commercial customersGoal: To increase the number of visitors that complete a storage reservationthrough the website.Research Question: Which checkout page will result in the highestreservation rate?Test Design: A/B Variable Cluster Split TestExperiment ID: TP1758Record Location: MECLABS Research LibraryResearch Partner: [Protected]Research Notes:
  • 7. #webclinic7EXPERIMENT: VERSION A
  • 8. #webclinic8EXPERIMENT: VERSION B
  • 9. #webclinic9EXPERIMENT: SIDE BY SIDEVersion A Version B
  • 10. #webclinic10EXPERIMENT: RESULTSDesign Conversion RateVersion A 17.68%Version B 19.50%Relative Difference 9.1%9% Increase in ConversionsThe treatment page increased the rate of conversion by 9.1% What you need to understand: While it might seem like a small increase,these simple changes at this specific step in the sales funnel resulted in aprojected $3,000,000+ increase in revenue per year.
  • 11. #webclinicCART OPTIMIZATIONQ. Which of the following pages/processes did your organization work to optimize?The shopping cart canbe one of the moststrategic aspects of aconversion process tooptimize…However, it is rankedthe lowest bymarketers on whatthey spend their timeoptimizing.
  • 12. #webclinic12Key Principles1. Shopping carts are not just a utility. They are the strategic means bywhich you (the marketer) maintain the cognitive momentum generatedin the conversion process.REDUCING CART ABANDONMENT
  • 13. #webclinicWHAT DO YOU OPTIMIZE FOR IN A SHOPPING CART?Design?51,345 PPCImpressions137Completion11,633Category Page3, 476Product Page398Cart Page #1223Cart Page #2Metrics?-$1,756 -$4,785 -$7,393 -$19,342 -$24,678Revenue?
  • 14. #webclinic14COGNITIVE MOMENTUMProduct Page Cart Page #1 Thank-you PageChannel Category Page Cart Page #2HighLowCognitiveMomentum• The overall objective of a shopping cart is to maintain as much forwardmomentum as possible from the “product page” to the “thank you” page.• Cart abandonment occurs when cognitive momentum is obstructed.Goal: To obtain aconversioncommitmentGoal: To engage visitor and leadthem to the most relevant valueGoal: To maintain the cognitive momentumgenerated by the product page
  • 15. #webclinic15Today, we are going to walk through the 4main reasons why customers lose momentumin the checkout process and abandonTODAY’S FOCUS
  • 16. #webclinic16Reason #1Unwarranted Confusion
  • 17. #webclinic17Key Principles1. Confusion is the chief impediment to conversion. In the shopping cart,confusion stems from disorientation.2. For every transition in the conversion process, the visitor experiences amoment of orientation. In this moment, they are seeking to make sense ontwo key levels:• Where am I?• What can I do here?3. The marketer has approximately 7 seconds to answer these questions ateach junction of the shopping cart process.UNWARRANTED CONFUSION
  • 18. #webclinicEXPERIMENT: BACKGROUNDExperiment ID: (Protected)Location: MarketingExperiments Research LibraryTest Protocol Number: TP1621Background: The research partner is a one-stop vacation planning solution thatallows users to book vacation rentals, car rentals, and activities.Goal: To increase final vacation bookingsPrimary Research Question: Which page will yield the highest conversion ratefrom billing information to confirmation?Approach: A/B variable cluster split testResearch Notes:
  • 19. #webclinic19EXPERIMENT: CONTROLControl Cart• The original cart wasbroken into two(unclear) steps• The horizontal flowas well as the blueshading made itdifficult for visitorsto get a sense for thesequence of the cart.
  • 20. #webclinic20EXPERIMENT: TREATMENT• A simple “step indicator” wasadded to clearly indicatewhere a visitor is located inthe process• The treatment also sequencedthe two steps vertically.Treatment Cart
  • 21. #webclinic21EXPERIMENT: SIDE BY SIDEControl Cart Treatment Cart
  • 22. #webclinic22EXPERIMENT: RESULTSDesign Conversion RateControl 27.4%Treatment 37.2%Relative Difference 36.1%36% Increase in Total Cart ConversionsThe treatment cart generated 36.1% more conversions than the control What you need to understand: By clarifying the sequence in the checkoutprocess, the treatment generated 36.1% more total conversions than thecontrol.
  • 23. #webclinic23NOT THIS, BUT THISNot This9%IN CONVERSIONSBut This
  • 24. #webclinic24NOT THIS, BUT THISNot This19%IN CONVERSIONSBut This
  • 25. #webclinic25Impediment #2Unexpressed Value
  • 26. #webclinic26EXPERIMENT: BACKGROUNDBackground: A newspaper selling subscriptions for home delivery.Goal: To increase home delivery subscription rate.Research Question: Which treatment will generate the highest homedelivery subscription rate?Test Design: A/B variable cluster testExperiment ID: TP1789Record Location: MECLABS Research LibraryResearch Partner: (Protected)Research Notes:
  • 27. #webclinic• The control was theoriginal home deliverycheckout page. It wasalready doing manythings right.• However, afterreflection, wehypothesized thatperhaps some slighttweaks in the designcould emphasize thevalue proposition.27EXPERIMENT: CONTROLControl Cart
  • 28. #webclinic28EXPERIMENT: TREATMENT• Adjusted copy andimagery to emphasizethe value proposition ofthe offer.• Added copy after eachoption to emphasize thesavings.• Call to action is clearerand implies value.• Credibility indicatorsand satisfactionguarantees are added.Treatment Cart
  • 29. #webclinic29EXPERIMENT: SIDE-BY-SIDETreatment CartControl Cart
  • 30. #webclinic30EXPERIMENT: RESULTSDesign Conversion RateControl 6.4%Treatment 12.9%Relative Difference 101.4%101% Increase in Total Cart ConversionsThe treatment generated 101% more subscriptions than the control What you need to understand: By making small tweaks to furtheremphasize the offer to the visitor, the treatment generated a 101%increase in conversion.
  • 31. #webclinic31Key Principles1. Visitor motivations typically peak just prior to the checkout process. At thesame time, the cost (material and mental) experienced by the visitor is usuallythe greatest in the shopping cart.2. One of the main reasons for cart abandonment is that we assume themotivation generated by the offer page will overcome the resistance in thecheckout process.3. However, marketers must ensure that value is being expressed continuouslyfor every step/action you require of the visitor.UNEXPRESSED VALUE
  • 32. #webclinic32NOT THIS, BUT THISNot This But This87%IN CONVERSIONS
  • 33. #webclinic33NOT THIS, BUT THISNot This But This10%IN CONVERSIONS
  • 34. #webclinic34Impediment #3Unaddressed Anxiety
  • 35. #webclinic35EXPERIMENT: BACKGROUNDBackground: A national computer hardware and multimedia retailer with asignificant online and offline presenceGoal: To increase total cart conversions and revenue per cart.Research Question: Which treatment will generate the highest conversionrate and revenue per cart?Test Design: A/B variable cluster testExperiment ID: TP1070Record Location: MECLABS Research LibraryResearch Partner: [Protected]Research Notes:
  • 36. #webclinic36EXPERIMENT: CONTROLControl Cart• A closer look at thecontrol cart pagereveals that allsupporting content isfocused on making anupsell
  • 37. #webclinic37EXPERIMENT: TREATMENTTreatment Cart• The treatment, however,changes focus to reducepotential anxiety• Testimonial,customer supportand live chat in thesupporting column• Another testimonialand credibilityindicators below thecall to action area
  • 38. #webclinic38EXPERIMENT: SIDE-BY-SIDEControl Cart Treatment Cart
  • 39. #webclinic39EXPERIMENT: RESULTSDesign Revenue/CartControl $49.14Treatment $54.84Relative Difference 11.6%11.6% Increase in Revenue Per ConversionThe treatment generated 3.69% more conversions and 11.6% more revenue per cart What you need to understand: By addressing anticipated anxiety at criticalpoint of decision point, the treatment generated 3.69% more sales inaddition to 11.6% more revenue per cart, resulting in a projected$53,000,000+ annual increase in revenue.
  • 40. #webclinic40Key Principles1. If we think about mitigating anxiety in rational terms, we will likely to fail inour efforts. Though anxiety often is stimulated by a legitimate concern, itsdegree/impact is often disproportionate to the measure of risk.2. Anxiety is also localized in the checkout process. It is closely associatedwith the geography of the page.3. To properly address anxiety, the marketer must anticipate specific concernsrelated to the product, and preemptively address them with geographicalproximity to the core source of concern.UNADDRESSED ANXIETY
  • 41. #webclinic41NOT THIS, BUT THISBut ThisNot This12%IN CONVERSIONS
  • 42. #webclinic42NOT THIS, BUT THISNot This But This12%IN TOTAL REVENUE
  • 43. #webclinic43Impediment #4Undirected Choices
  • 44. #webclinic44EXPERIMENT: BACKGROUNDBackground: B2C company offering package vacations to global consumeraudience.Goal: To increase cart completionsResearch Question: Which cart page will generate the highest completionrate?Test Design: A/B split test (variable cluster)Experiment ID: TP1294Record Location: MECLABS Research LibraryResearch Partner: [Protected]Research Notes:
  • 45. #webclinic• The original cartwas simple, but itincluded threeequally weightedoptions from whichthe visitor had toselect.• This made thecheckout processmore cumbersomethan was necessary45EXPERIMENT: CONTROLControl Cart
  • 46. #webclinic46EXPERIMENT: TREATMENT• The marketersdeemphasized andintegrated theadditional optionsinto the productdetails.• And they visuallyfocused the visitoron one main calltoo action here.Treatment Cart
  • 47. #webclinic47EXPERIMENT: RESULTSDesign Conversion RateControl 12.94%Treatment 17.66%Relative Difference 36.5%37% Increase in Total Cart ConversionsThe treatment path generated 36.5% more cart completions What you need to understand: By simplifying and sequencing the optionsto choose from, the treatment shopping cart generated 36.5% more cartcompletions.
  • 48. #webclinic48Key Principles1. Giving the customer more choices does not always produce more conversions.In fact, one of the greatest impediments to conversion is multiple options thatare equally weighted.2. When possible, the shopping cart should NOT lead a prospect to a set ofpotential options, but rather to “the one” option. Beware of unsupervisedthinking.UNDIRECTED CHOICES
  • 49. #webclinic49NOT THIS, BUT THISBut This64%IN CONVERSIONSNot This
  • 50. #webclinic50NOT THIS, BUT THISNot ThisBut This78%IN CONVERSIONS
  • 51. #webclinic51SUMMARYKey Principles• Cart abandonment occurs when cognitive momentum isobstructed.• The primary 4 reasons customers lose momentum in the checkoutprocess are:1. Unwarranted Confusion2. Unexpressed Value3. Unaddressed Anxiety4. Undirected Choices
  • 52. #webclinic52PRACTICAL CHECKLISTUse this checklist to mitigate abandonment in your shopping cartprocess:Is orientation provided at each junction of the shopping cart process?Is value being expressed continuously for every step/action you require?Are there any unaddressed concerns about the product(s), or aspects of thecheckout process?Are concerns addressed in close geographical proximity to the core source?Does every step present a single, clear path towards completion?
  • 53. #webclinic53Live Optimization
  • 54. Landing Page OptimizationSept. 30 – Oct. 3, 2013SAN FRANCISCOWeb Clinic Attendees: Save $200
  • 55. Landing Page OptimizationPromo Code: 465-ST-1008Expires June 19th
  • 56. #webclinicLive OptimizationSteps to current page:1. Store front2. Order ReportsConsumers looking fordata on vehiclesPage URL: audience:Carfax
  • 57. #webclinicLive OptimizationSteps to current page:1. Store front2. Products page3. CartConsumers that needwireless fencing for petsPage URL: audience:Havahart
  • 58. #webclinicLive OptimizationSteps to current page:1. Store front2. Products page3. Select Plan4. CartPage URL: audience:Businesses in need of ITmonitoring servicesOpsview
  • 59. Optimization NewsletterFree subscription to more than $20 million in marketing researchJoin 89,000 of the top marketers from around the world as we work together to discover what really works.#webclinic