Spike - Insights and News

Cart abandonment

Written by Odette Da Finkk | Apr 25, 2023 1:13:27 PM

UK Retailers are losing up to £656m

in missed revenue in the last mile. But why and how can this be fixed?

The average FMCG abandonment averages 53%, here are the top 8 reasons why:

  1. High additional costs (taxes, shipping, & other fees)
  2. Forced account creation.
  3. Complicated, time-consuming checkout.
  4. Inability to calculate total costs upfront.
  5. Security concerns.
  6. Slow delivery & limited shipping options.
  7. Performance issues.
  8. Inadequate returns policy.

In our experience, the best way to manage this challenge is through two key solutions.

OBSERVABILITY

1. We step in to watch your customer's real-time activity. We know the simple task of being forced to re-enter card details results in 55% abandonment – so we work through where brands may be falling foul and recommend all the changes required. As Stefano Vaccino, founder & CEO Yapily said:[vlt_post_quote_block text="“To stop poor experiences eating into their profits, businesses should stop and listen to what consumers are asking for.”" css=".vc_custom_1684141660245{background-color: #e04e99 !important;}"]

PERFORMANCE

2. Given that a 2-second delay in load time results in abandonment rates of up to 87% performance may sound obvious, but it’s still a leading reason customers ditch. Especially given the continually growing content levels of e-commerce platforms, and the shortening patients of new generations of customers.

Here’s the latest data that tells us how key performance is:

BEFORE THE CART: 90% of shoppers will abandon their cart if the site is too slow. But this figure soared among younger generations to 70% of those aged 16 to 24 and 64% of 25 to 34-year-olds.

IN THE CART: 52% of UK shoppers have ditched at least one online purchase in the last 12 months due to poor performance & experience at the online checkout.

Our advice is to plan a program to observe and then build a list of the areas to adjust. Secondly, look at how increasing capability has affected performance and put in place a programme to get back on track.

TO DO

- OBSERVE: Kick off an observability programme – one per quarter to perfect & maintain. Top things to watch:
+ Costs – be clear with costs before they hit the cart (the highest average cart lost is only £30)
+ Shipping – keep it clear with no surprises
+ Enable pre-filling and purchase ‘as a guest’
+ Above the fold - keep the critical elements in the right spot
+ Devices - optimise site design for the mobile given 77.08% of purchases are made there.

- PERFORMANCE: Review your performance – you’ll notice you won’t even make it to the cart if you’re failing here
+ Load tests – peak, stress, soak
+ Tuning - reduce bottlenecks, debug
+ Threats – identify, address bottlenecks and resource usage
+ Page Speed – plus Google Lighthouse Benchmarking

Good luck – go find ways to claw back some of those sales quick – or call in the team who know how (namely us).

#retail #FMCG #technology #quality #observability #performance