Reduce Cart Abandonment With Incentives

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The battle against cart abandonment rages on; retailers are getting savvier however about the strategies they can use to reduce the impact of the behavior.

Kigurumi Shop, a California-based online retailer, for example, recently implemented an incentive plan to counter cart abandonment during the most recent holiday season and the results are noteworthy by any measure.

Kigurumi Shop embedded ShopSocially’s Get-a-Fan app (which uses a personalization engine to detect abandonment and deliver incentives for completing a purchase - see image below) and offered visitors a $10 off incentive when they tried to exit the cart page.

The result? A dramatic improvement in conversion rate.

“Our main objective was to reduce cart abandonment and encourage customers to complete their purchase orders. By offering an attractive incentive just before they were about to abandon the cart page helped us achieve an impressive sales conversion rate of 59.23 percent,” commented Atsushi Miyamoto, manager of Kigurumi Shop. “ShopSocially’s innovative solutions have definitely helped us improve our sales rate and addressed our major concern of cart abandonment.”

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1 comment

Revvs 02-16-2016 6:34 PM

It's an interesting debate as to whether or not you should ever offer incentives like this to try to improve cart abandonment.  Often times, decision makers are hung up on improving these numbers without ever measuring the impact on the bottom line.  Consumers are very intelligent and quickly come to rely on that incentive, or when in the case of a promo code, see them on third party sites where they may get the $10 whether they were going to abandon or not.  If you improve conversion rate by x%, but lower your Average Order Value and lower margins, hence that lost revenue offsets any negligible improvement in conversion rate.  In that case, I'd argue that the retailer didn't really solve anything by offering it in the first place. Too many people are hung up on conversion rate and try to inflate it artificially. It isn't the end all analytic to track.

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