shopping cart optimization for ecommerce web sites

SHOPPING CART OPTIMIZATIONAugust 25, 2009

SHOPPING CART OPTIMIZATION

k f dGuest Speaker from Red Door InteractiveCharles Wiedenhoft, Director of Business Planning & Optimization

Shopping Cart Optimization

Introduction Abandonment trends

Reducing abandonmentReducing abandonment

Data‐driven strategy

Q&A Q&A

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Shopping Cart Optimization

Abandonment trends

68

70

Shopping Cart Abandonment % -3.1%Projected retail

62

64

66

68 Projected retail e‐commerce sales decline in 2009.eMarketer: Retail E‐Commerce Continues Slow Slide

56

58

60

Apr  May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Slow Slide http://bit.ly/AXISR  Twitter: @eMarketer

Coremetrics 2nd Annual Online Retail Holiday Optimization Guide

p y g p

Current Year Previous Year

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Coremetrics 2nd Annual Online Retail Holiday Optimization Guide http://bit.ly/ut9aS  |  @coremetrics

Shopping Cart Optimization

Breaking it downg

High shipping charges

Reasons for Cart Abandonment $109 The average cost f b d d

Couldn't find preferred pay optionWanted to shop offline

Wanted to look for a couponLack of money

Wanted to comparison shop of abandoned goods.PayPal Checkout Abandonment Studyhttp://bit.ly/LS50e   |  Twitter @PayPal

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Concerned about security of credit card dataCouldn't find customer support

Item was unavailable at checkoutp p y p

79%Retailers who 

PayPal Checkout Abandonment Studyhttp://bit.ly/LS50e   |  Twitter @PayPal

identified cart and checkout as a top priority.Shop.org ‐ The State Of Retailing Online 

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p g g2009: Merchandising Report http://bit.ly/1Abr13  Twitter @shoporg

Shopping Cart Optimization

Appeal to discount shoppers Keep coupon hunters in 

the funnel‐ Decrease visual 

prominence of theprominence of the promotional code field

‐ Display field dynamically based on referring URL

‐ Offer a universal discount and display code on all pages

‐ Encourage email opt‐in for immediate discount

27% 7/21/2012 ©2009 Red Door Interactive 8

27% Shoppers who reported leaving a cart to find a coupon.PayPal Checkout Abandonment Study  |   http://bit.ly/LS50e   |  Twitter @PayPal

Shopping Cart Optimization

Appeal to discount shoppers Highlight savings from 

clearance items and instant web discounts ‐ Carry‐through symbols 

and messaging from product pages

‐ Show original and marked d idown price

‐ Show total amount saved

‐ Show total % savings

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Shopping Cart Optimization

Avoid surprise chargesR l hi i h Reveal shipping charges and tax on the shopping cart page‐ Offer a choice of shipping‐ Offer a choice of shipping 

methods 

‐ Auto‐select the least expensive option

‐ Include a shipping and/or tax calculator

‐ Simplify shipping formulas

46% 7/21/2012 ©2009 Red Door Interactive 10

46% Shoppers who reported leaving a cart because of high shipping charges.PayPal Checkout Abandonment Study  |   http://bit.ly/LS50e   |  Twitter @PayPal

Shopping Cart Optimization

Avoid surprise chargesR l hi i h Reveal shipping charges before the cart‐ Provide a perpetual 

shopping cartpp g

‐ Display shipping charges on product detail pages

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Shopping Cart Optimization

Offer alternate payment methods Extend credit at the 

point of purchase

Enable consumers without credit cards to purchase from your site

31% 7/21/2012 ©2009 Red Door Interactive 12

31% Estimated online dollar volume from alternate payments methods in 2012.Javelin Strategy and Research  |  http://bit.ly/o76su  | Twitter  @JavelinStrategy

Shopping Cart Optimization

Build confidence and trust Show “trustmarks” with 

increasing prominence through cart and checkout processprocess‐ Call number and live chat

‐ Security badges

Guarantees and policies‐ Guarantees and policies

‐ Awards and endorsements

‐ Customer testimonials

C lt d l‐ Company culture and value

Answer common questions

21% 7/21/2012 ©2009 Red Door Interactive 13

21% Shoppers who reported leaving a cart because of security concerns.PayPal Checkout Abandonment Study  |   http://bit.ly/LS50e   | Twitter  @PayPal

Shopping Cart Optimization

Show clear path to completion Encourage shoppers to 

take action‐ Tell shoppers what to do 

with inductive messagingwith inductive messaging

‐ Show how many steps are in the checkout process

‐ Differentiate primary and secondary actions

‐ Remove actions with potential to cause irrecoverable errors

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Shopping Cart Optimization

Data-driven strategy Benchmark and monitor KPIs

‐ Cart and order sessions42%Online retailers‐ Average order value (AOV)

‐ Visitor engagement

Isolate problem areas

Online retailers who know their shopping cart abandonment 

l‐ Shopping cart page exit links‐ Form field abandonment ‐ Checkout funnel retention

rates exactly.MarketingSherpa 2009 Ecommerce Benchmark Reporthttp://bit.ly/E4I7L Twitter @MarketingSherpa

Expand focus‐ Attitudinal and competitive data analysis‐ A/B and multivariate testing

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Shopping Cart Optimization

Q tiQuestions

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Shopping Cart Optimization

Don’t Miss Our Next Webinar! Brand Monitoring in Social Media ‐ Presented by Tony Felice, 

Developer & Strategist

Tuesday, September 22

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