Shopping cart abandonment is a big problem in eCommerce. The ease of access that has made online shopping increasingly popular has also enabled those same shoppers to “walk away” before completing a purchase.
The statistics are staggering: according to the Baymard Institute, the average rate of cart abandonment is almost 70% which can mean a significant loss of potential revenue for etailers. According to AnnexCloud, shopping cart abandonment costs emarketers $2 – 4 trillion per year.
While most cart abandonment can be attributed to visitors just “browsing,” there are a variety of other reasons for shoppers exiting the checkout process without making a purchase. Those reasons range from trust issues to bad user experience, but the number one reason shoppers abandon their purchase is cost-related.
It’s not surprising that many online shoppers are cost-conscious given that the internet provides an array of tools for price comparison. In addition, bargain-hunting consumers tend to be less brand loyal making retention difficult according to WCMarketplace.
Prodege loyalty programs can help reduce shopping cart abandonment while offering retention benefits. ProdegeDR solutions can help eCommerce sites reduce cart abandonment with our cashback offers which appeal to the price-conscious shopper. Providing cashback rewards acts as catalyst, motivating shoppers to who might otherwise not complete their purchase due to cost-related issues an incentive for finalizing checkout.
Average eCommerce conversion rates can vary by industry, but overall most studies put it at less than 2%. ProdegeDR can target millions of active members and increase brand awareness for products and offers, yet even with broad targeting and high volume of emailed offers, conversion rates for Prodege programs can be as high as 12%.
The added benefit of cashback rewards is a powerful motivator for online shoppers. In surveying over 1,000 registered members of Prodege brands, we found 49% are influenced on where to shop based on cashback alone.