Whether your site is B2C or B2B they both share the same revenue stealing monster, Cart abandonment. The average abandonment rate is 69.23% and historically has been climbing.
There are a lot of reasons customers may decide to abandon; this could be due to high costs (shipping, tax, fees), account creation, complicated buying and so on.
If cart abandonment is not one of your main focuses to improve your website, then think of it this way.
If your business makes 1 million dollars in annual sales but has a cart abandonment rate of 69.23, you are losing potentially $2,249,918.75 a year. Lowering this rate by only 10% would generate you another $224,991.88 extra per year.
Do not believe me? Here is the math:
1,000,000 (year revenue) = 30.77% (100-69.23) * X (Our revenue with no cart abandonment)
No cart abandonment = $3,249,918.75 Yearly revenue
$3,249,918.75 - 1,000,000 = $2,249,918.75 (Total amount lost due to cart abandonment)
$2,249,918.75 * 10% = $224,991.88 per 10% decrease of abandonment.
To help you recapture some of your losses we have shared the following infographic to help guide you through the leading players in your Cart Abandonment rate.
It is not always easy to implement a lot of these changes on your site. Some companies may aim to use outside developers or a digital marketing agency to quickly and efficiently make need changes.
Once you have improved your abandonment, maybe you should look into other metrics, such as Average Order Value (AOV) and Customer Lifetime Value (CLV).
Have a software or strategy that has helped your cart abandonment rate? Share with us!