the last click: addressing mobile shopping cart …...the last click: addressing mobile shopping...

The Last Click: Addressing Mobile Shopping Cart Abandonment 1

EXECUTIVE SUMMARY

Numerous studies have attempted to address and remedy shopping cart abandonment, both on the web and in the mobile space. This previous research has covered a wide range of topics to include user feedback, user behavior, user experience, user interface, brand a� nity, pricing and other related issues.

PossibleNOW, in partnership with Laddering Works, conducted primary research of the mobile shop-ping experience to uncover core values and drivers of consumers in an attempt to explain not what or how users are abandoning shopping carts, but why. This new research o� ers key insights and conclu-sions that can help explain the mobile purchasing cycle and shopping cart abandonment at its source: the user.

The Last Click: Addressing Mobile Shopping Cart Abandonment by Eric V. Holtzclaw and John R. Davidson

“A mobile shopping cart will be abandoned

91% of the time.”

EXECUTIVE SUMMARY

Numerous studies have attempted to address and remedy shopping cart abandonment, both on the web and


The Last Click: Addressing Mobile Shopping Cart Abandonment

INTRODUCTIONWhy do mobile users add items to shopping carts and then not purchase those items? It’s a vexing problem faced by merchants, made even more prominent by the meteoric rise of mobile e-commerce. Shopping cart abandonment on websites has been examined for more than a decade, and many strategies are advocated to improve the rate of aban-donment (67%1). However, rates have barely been reduced and the mobile shopping cart abandonment rate is signi� -cantly higher (91%2).

Most formal research on this issue has focused on user surveys, database analysis or clickstream reports on incomplete purchases left in mobile shopping carts.

For example, based on user response, web abandonment is typically based upon3:

• high shipping costs• not ready to purchase• high product price• using the shopping cart as a

wish list or comparison tool• unclear shipping policy• no guest checkout option

• a need for more information• complex checkout process• slow/complicated website UX/UI• extra for taxes• not enough payment options• spam with o� ers• website crash

Other studies assert that digital shopping cart abandonment in and of itself is not the problem. Instead, if the cart is abandoned, then the only conclusion is that the user is not ready to buy, and thus the consumer should be moved to a conversion process instead4. The shopping cart is an area of multiple use-case scenarios that must be evaluated within the context of the entire purchasing process.


Now, more than ever, all purchasing behavior begins with the user. A user’s core purchasing drivers, based largely on

life experiences, desires and personalities, are � ltered through externalities and turned into behaviors that can a� ect any part of the purchasing process5. Technological innovation has exposed markets to widespread fragmentation and mer-chants are losing control of the sales funnel in an era of mass customization.

The result is that there are multiple stages of the buying decision that, for most users, take place within the “shopping cart” � ow. Current digital shopping cart behavior is more � uid in the users’ mind than in a traditional, physical shopping cart or even in early e-commerce websites. In the mobile environ-ment, where purchase behavior is geographically dynamic, it is even more di� cult to strictly measure shopping cart abandonment data by attaching it to a particular point of the purchasing process.

Externalities unique to the mobile environment have been well noted in research. For example, survey data shows that there is a wide range of interaction and intention on mobile devices during the shopping process6:

• store location• checking price• research item prior to purchase

• reading reviews of product• using lists while shopping• mobile couponing• purchasing an item on the device• using a device for payment• using social media to comment on purchase• writing a review of a purchase• entertainment value

However, intent to purchase or other attitudinal elements of the purchasing cycle are challenging to discern when research conclusions are derived only from hard data and surveys. Visitor personas, buying stag-es, complexities of purchase, and levels of engagement are not easily measured; given their relationship to core drivers, actions executed against the above � ndings are likely to be ine� cient solutions for the abandonment problem.

Instead, merchants and researchers must examine and assess the purchasing process and potential buyers from a holistic perspective. This kind of sophisticated approach requires not only data-based observations, but also acknowl-edging and illuminating the core purchasing drivers that exist in every user. The resulting contextual observations allow merchants more customized, e� ective communications with their users.

THE SHOPPING AND PURCHASING PROCESSIn order to understand userbehavior, the context and elements of the purchasing process must be delineated � rst:

N E E DAWA R E N E S S

S O LU T I O N E X P LO R AT I O N CO M PA R I S O N P U R C H A S E

SHOPPING CART

USER

CO R E VA LU E S

+

E X T E R N A L I T I E S

BEHAVIORS


FINDINGS

Conventional wisdom is typically derived from conventional research and tangible metrics such as the rate of abandonment, click-through-rates, time spent on a website, the number of items in a “wish list”, or rote demographics. Our research con-

cludes that previous � ndings based on wide swaths of data may not reveal true intentions and purchasing drivers. Some overarching � ndings include:

“Shopping Cart” is a misnomer Virtual shopping carts often serve a variety of functions

for users that are unrelated to a physical shopping cart. As a result, the word “abandonment” is usually an inaccurate representation of user behavior. For example, respondents commonly used the shopping cart as placeholder for items they were interested in purchasing, similar to a “wish list” functionality. They do not think of the shopping cart in the same way online as they do a physical shopping cart, so “abandoning” a cart online has no emotional resonance with users. To the user, the shopping cart represents multiple com-munication points in the purchasing process, and those points are de� ned by the user.

Most mobile behaviors are not directly related to demographics

We found that shopping behavior on a mobile device is not strongly tied to demographics. Our respondents crossed a wide variety of demographic lines with very few commonalities attached to typical demographics. Instead, we noted shopping habits, digital aptitude, and personalities clustering that were not related to gender, race, age, income, education, etc. and were in line with consumer DNA uncovered in wider spectrum

research7.

Users are treated exactly the same by digital merchants

Merchants treat website and mobile visitors exactly the same, even if the merchant possesses behavior, performance or pro� le data on the visitor. Treating every visitor the same decreases marketing and communications e� ciency, as well as conversion rates; respondents repeatedly showed interest to customized experience and messaging that served their personalities and spoke to their core needs and drivers.

Not all communication is the sameIf the user seeks additional communication during the se-

lection or shopping process, it is far more e� ective to provide communication that is targeted at a user’s core drivers. Each user’s core driver is di� erent – some want to buy because others have bought, others want to buy because oth-ers have not, and still others may be driven by quality or expert reviews. By paying attention to user behavior and responding with appropriate communication that appeals to a user’s core drivers, merchants can gain signi� cant e� cien-cies in the shopping process.

Some problems with “mobile” cannot be easily overcome

Some users expressed a desire to view items on a larger screen or complete the transaction when they are at home or on another system. Better visual design or interface can improve the user experience and address some of these needs. Also, the ability to save a certain spot in the shopping process and complete the transaction later supports these users’ speci� c expectations.

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RECOMMENDATIONSTreat the shopping cart as a juncture to convert or communicate

Since the phrase “shopping cart” has a � uid de� nition to users and is not always the point of purchase, it should be viewed as a juncture in the shopping process where the merchant can either a) convert the user into a purchase or b) continue communi-cating until a conversion can take place. For example, if the user navigates away from the page, it is unlikely they will return unless prompted by a merchant.7 There is a strong desire by certain users for a proactive relationship where the merchant demonstrates its knowledge of the user and the purchasing process. Communication in the purchasing process thus should be customized and appealing to users’ core drivers.

Implement permissions-based communicationsOur research noted that communication by merchants with

users about and during the purchasing process is not only expected, but can be improved considerably if the merchant’s communication is permission-based. Most respondents want the ability to control communications with a merchant, or have communications and messaging delivered in context. Given

the importance of this opportunity, we recommend addressing communication preferences with users to ensure e� ective communication throughout the purchasing process.

Implement user-centric user experiences and communications

Several distinct core purchasing drivers were revealed through our research. We recommend that your marketing and communication address these common personality traits in order to intercept and support consumer behavior through the decision and purchasing process:

– Reactive versus Proactive Inbox ManagersConsumers fall into two distinct camps regarding the

way they manage their inbox and the way they manage communication from merchants. One group is highly proactive in their management of messaging: these users eliminate correspondence at the merchant site and keep their email inbox clutter to a minimum by carefully customizing merchant messaging at the settings or pref-erences level. The other group takes a reactive approach

Pro� le: Traditional Tracy

“I enjoy going to the store. I like to see what’s new and di� erent.”Tracy is a shopper in the traditional sense of the word. She shops at any opportunity a� orded her and is always looking

for a good deal. She is de� nitely store � rst, virtual second. She might see an item in a store and decide to look it up to see if she can get a better deal online or down the street.

For her, shopping is still a social outlet and she has no problem spending time looking for the items she needs, or thinks she needs. She will put an item in the cart on her mobile device to see what the actual price might be and also

as a way to save it for later. If she doesn’t � nd a better deal while she is out and about, she will go ahead and buy it online later that night – of course after she’s spent a little additional time doing some online comparison shopping.

She signs up for any and every correspondence she can receive from a store or her favorite brand. She doesn’t want to miss out on the latest sale or shipment of new product, any reason to go out and participate in one of her favorite activities. She would rarely unsubscribe because the next correspondence might be of interest to her, even if the last wasn’t.

She relies on her friends’ recommendations and is not worried about duplicating what they may have already purchased. She loves to use Facebook to share what she is buying or interested in and to see what her friends might be doing as well. She is just get-ting into Pinterest, and usually shares things across from Pinterest to Facebook as she sees Facebook as her primary social platform. She has de� nitely “liked” a brand to get a deal or a special o� er.

What do you need to do for Tracy?It would be very di� cult to over-communicate with Tracy. She wants to know about all of the latest and greatest deals and latest

news at a store or with a brand. She is de� nitely always looking for a deal so she can continue to shop, but she is very interested and swayed about what her friends may have bought or what they are buying.

Pro� le: Traditional Tracy

“I enjoy going to the store. I like to see what’s new and di� erent.”Tracy is a shopper in the traditional sense of the word. She shops at any opportunity a� orded her and is always looking

for a good deal. She is de� nitely store � rst, virtual second.

as a way to save it for later. If she doesn’t � nd a better deal while she is out and about, she will go ahead and buy it online later that night – of course after she’s spent a little additional time doing some online comparison shopping.


to managing merchant e-mail by deleting or � ling it when they receive the correspondence in their inbox. The reactive group is much more open to quickly customizing their messaging via bite-sized modal dialogues instead of navigating a full-scale preference panel on the merchant’s website.

– Trusters of technology The more that a user trusts the technology, the more

likely they are to use that technology to make the pur-chase. They don’t want anything to get in their way and prefer to customize the communication with a merchant on a detailed level if possible. For example, trusters of technology will tweak not only the frequency of commu-nication, they will tweak content of communication from a merchant.

– Provide ways to complete the transaction laterSome consumers want the ability to complete the

transaction later on a larger screen, either on a tablet or desktop. These users may have a di� cult time manipu-lating buttons on small screens, di� culty reading small fonts, di� culty inputting credit card numbers, etc. They are comfortable purchasing on a mobile device but prefer doing it on a larger screen out of physical convenience.

– Support consumers who want to shareSome consumers want to share their opinions (what

they like, what they are considering, etc.) in the purchas-ing cycle via social media and there are varying levels of privacy discretion that should be available during the sharing process.

Pro� le: Social Sarah

“Who has time to go to the mall? That doesn’t mean I don’t like to shop!”The process of shopping is not “an event” for Sarah. She is far too busy keeping up with her life to spend time “shopping”, at

least not in the traditional sense of going out with her friends for the afternoon. This does not mean that Sarah doesn’t shop – quite the contrary – she is shopping all the time. New shoes for work, a

new out� t for an upcoming vacation, a replacement refrigerator as soon as she has the money saved up. She just doesn’t often go to the store to � nd these items. She uses her laptop, cell phone and tablet to shop while waiting to pick up the kids at ballet, when she is in line at the bank or on the couch in the evening next to her husband.

She still relies on her friends just like she did in the days they would go to the mall together, but it’s in a very di� erent way. See, Sarah found and absolutely loves Pinterest. She can keep up with her favorite things and organize them in a visual way. She probably uses Pinterest more now than any other network. While she’s not sure she would call it “social”, it does give her an idea about what’s going on in her friend’s lives and gives her a place to “dream.” When she is in a store, she might look something up she � nds and decide to pin it right then or save it, potentially put in a “cart”, so she remembers to do so later. She will buy the item someday she is sure.

As for communication from her favorite brands or companies, she is far too busy to spend time keeping her e-mail inbox clean. It’s easier for her to just hit the “delete” button. If she does unsubscribe, it’s because she has gotten far too much from a particular sender and she will most likely completely opt-out unless the ability to opt-down very easy.

Sarah wants something original, not what everyone else is buying. In fact, this makes her hesitate at times because she doesn’t want to be seen in the same thing her friend might have – it’s not just about showing up at a party in the same out� t, with Facebook, everyone sees what you are wearing all the time!

What do you need to do for Sarah?Sarah actually cares a lot about what people think about her. Help her keep up with what’s cool with her friends or what’s in style

so she stays up on current trends. She appreciates communications from her favorite brands, companies and products. She buys from them, they should know her, right? She likes to share purchases, or potential purchases, just like she did when she had time to go to the mall with her group of friends.

Pro� le: Social Sarah

“Who has time to go to the mall? That doesn’t mean I don’t like to shop!”The process of shopping is not “an event” for Sarah. She is far too busy keeping up with her life to spend time “shopping”, at

least not in the traditional sense of going out with her friends for the afternoon.

She still relies on her friends just like she did in the days they would go to the mall together, but it’s in a very di� erent


– Support consumers who rely on others for decision-makingCertain consumers reinforce their buying decision

based on the purchasing decisions made by their friends or other trusted sources. The melding of social media and the buying process can have a profound e� ect on impulse of these buyers.

– Embrace the mobile channelInstead of ignoring or being ambivalent to the fact

that show-rooming is occurring in the store, merchants should devise ways to support this behavior by position-ing themselves as a vital link in the purchasing process. Merchants can be trusted advisors instead of simply brokering a commodity based on price. The goal should be to nurture relationships with users and foster a buying decision via a more customized user experience across the store and the users’ devices.

– Money talksAs noted in previous studies, free shipping or a signif-

icant discount continues to be an emotional, de� nitive “tipping point” to complete a purchase in the mobile environment for a large group of consumers. Many consumers begin their price comparisons on whether or not a merchant o� ers free shipping.

– Establish trustFor consumers that have experienced identity theft

or don’t “trust” technology, emphasizing security of data, availability of alternate payment methods such as PayPal, and overall brand a� nities resonated strongly amongst those respondents.

Pro� le: Hipster Harry

“I pick out what’s going to be the next cool trend. I can’t be sold to.”

Harry likes to think that he doesn’t belong to a group, but he desperately seeks others acceptance and secretly wants acknowledgment that he is cooler than they are. In order to maintain his status, it’s important for him to be up on the latest

new products, clothing or other items. He likes to � nd out this new information “on his own” through an obscure blog, magazine or other non-mainstream source. These sources of information drive him to a shopping experience, which often starts online because the products he seeks are not available in just any store. It might require some digging around to acquire what he seeks.

If he is in a store, he is very likely to look up a product to understand more about it. He is somewhat driven by price, but the perception of the product and the perception of him because of its use is far more important. Product ingredients,

information about origin or any indication of exclusivity or status help him in his decision to buy the product.He is fastidious about his e-mail inbox, limiting it only to the brands and companies that he thinks map to his personal identity. He

rarely signs-up for a communication from a company or a brand unless it’s part of the group that he thinks is “in”. He has to be proac-tively asked or incented to be added to a list, he doesn’t seek inclusion.

Harry primarily uses Instagram, Twitter and Google+; Facebook is of little concern to him. He sees it as fading and not where people like him hang out.

What do you need to do for Harry?Harry needs to learn about things � rst or have access to the newest product or style. His shopping is driven as much by status as it

is by need. Passive reassurance or clues that the product he is considering for purchase � ts this goal is in-line with Harry’s core driver to be ahead of the crowd. He is driven by alternative buzz – eco-friendly, green, organic, single.

Pro� le: Hipster Harry

“I pick out what’s going to be the next cool trend. I can’t be sold to.”

Harry likeacknowledgment that he is cooler than they are. In order to maintain his status, it’s important for him to be up on the latest

new products, clothing or other items. He likes to � nd out this new information “on his own” through an obscure blog,


Pro� le: Con� dent Carrie

“I like my life organized and I want the best product for my money.”Carrie is a researcher. She makes sure that she is getting the best value for her money. She keeps up with the latest

information about what’s going on and what’s new by reading the blogs of her favorite trusted advisors.Before she heads out to shop, she spends time online reviewing and looking for the items on her list. She doesn’t

really enjoy shopping, so Carrie sees this ability to do pre-work as a way to control her schedule and make her shopping experience more e� cient. If she � nds an item that she can have easily shipped to her house, even better!

Few things annoy Carrie more than ending up on a list for a company without her prior knowledge. She has a special e-mail address setup when a merchant insists on one at the checkout or to use with companies that she doesn’t

trust. She doesn’t want to hear from anyone selling something on her cell phone – if she wants an item, she will do the research and � nd it herself.

She relies on the advice of experts or others that have used to product or service to make her decision. She doesn’t just buy the one that is most popular or most advertised and she’s glad to provide her opinion, but only when others ask.

What do you need to do for Carrie?Carrie likes to manage communications from the source, she keeps her inbox clean and organized. If she receives too many com-

munications from a brand, she de� nitely wants to modify it and will take the time to pick the topics that are truly relevant to her. She relies heavily on reviews and wants to know she is getting the best product for her money, even if it’s not the cheapest.

Pro� le: Con� dent Carrie

“I like my life organized and I want the best product for my money.”Carrie is a researcher. She makes sure that she is getting the best value for her money. She keeps up with the latest

information about what’s going on and what’s new by reading the blogs of her favorite trusted advisors.

really enjoy shopping, so Carrie sees this ability to do pre-work as a way to control her schedule and make her shopping

special e-mail address setup when a merchant insists on one at the checkout or to use with companies that she doesn’t

Store First,Mobile Second

Keeps Up Appearances

Relies onGuidance

Shares forA� rmation

Manages at Source

Pop Media In� uence

Social Sarah o o o o o o o o o o o

Hipster Harry o o o o o o o o o o o o o

Traditional Tracy o o o o o o o o o o o o

Con� dent Carrie o o o o o o o o o

o = Low o o = Medium o o o = High

Store First, Mobile Second: The person is driven to the mobile experience by visiting the store � rst.Keeps Up Appearances: How they “look” to others is very important, though they may tell you it’s not.Relies on Guidance: In order to make a purchase decision, especially a signi� cant one, they rely on

others for guidance to make the decision.Shares for A� rmation: This person seeks others “advice” before making a purchase.Manages at Source: Preventing unwanted communication is important to them and they cut it o� at the

source.Pop Media In� uence: News stories and information that is shared across popular media channels drives

their decision making.


THE FUTURE: CUSTOMIZE WITH CONTEXT

In the past, server-client technology was driven by “dumb” appliances: dumb terminals, dumb routers, dumb pipes,

etc. But advances in data acquisition and storage have made ubiquitous analysis available on a scale never imagined. This development presents an enormous opportunity to carefully collect and derive not only data insights, but to apply those insights in a contextual manner.

Unfortunately, most mobile portals and apps are reaction-ary and treat all users exactly the same, a mere net to either capture browsers in the act of purchasing or to prevent visitors from escaping. Knowledge of users is not applied discretely, and virtually none of the experience is customized. This is a lost opportunity to not only nurture relationships with consumers, but also in sales.

A few merchants are smart, or getting smarter:• Amazon, for example, often customizes the browsing ex-

perience based on past purchases, browsing, and similar items.

• Some merchants use transactional information to gener-ate purchasing recommendations.

• Some merchants note previous visits and acknowledge their users.

• A rare group of merchants even collects preferences to customize each visit on the surface level.

But almost no merchants at all are leveraging the vast amounts of user/visitor/customer knowledge available into a truly personal user experience.

This lack of action is both a surprise and an opportunity. For example, the level of behavioral data available to most merchants is stunning: Facebook’s open graph, LinkedIn data, Twitter feeds, settings data, etc. Advertisers use algorithms based on this and similar data to serve incredibly prescient advertising, but the same brains aren’t being applied to the rest of the digital experience or in developing a holistic ap-proach to app design, app logic, app functionality, or app user interface. The result is a homogenous, reactive experience for mobile app users.

Taken another way: the smartphone is the most personal, customizable device in history. Yet nearly all mobile apps are designed and deployed with a extraordinarily narrow set of use cases and almost no context with regards to the end user. We know so much about users, yet apply almost none of this knowledge. We have smart phones but dumb apps.

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SUPPLEMENTAL MATERIALMethodology

To create a full picture of shopping cart abandonment, its unique dynamics, and the intentions/drivers of users, Laddering Works conducted in-depth, in-person interviews with mobile users and analyzed the results against Laddering Works’ consumer DNA, which was developed over a decade of conducting thousands of consumer interviews to understand core drivers and needs. Laddering Works’ line of questioning explored user backgrounds and in� uences, shopping experience, shopping habits, purchasing history, and familiarity with technology. Interviews were completed in March, 2013.

About PossibleNOWPossibleNOW, headquartered near Atlanta, Georgia, is the trusted source for consumer

preference management and compliance solutions. PossibleNOW leverages its expertise in information technology, database man-

agement, and consumer privacy and regulatory compliance to provide cloud-based applications and

solutions. PossibleNOW’s MyPreferences® is an enterprise preference management solution that e� ectively collects and manages the contact preferences of customers and prospects including servicing, privacy, marketing (opt-in and opt-out) across all marketing channels and makes the preference data actionable. The DNCSolution® suite of cloud-based services provides comprehensive tools that help direct marketers comply with federal and state Do Not Contact legislation (Do Not Call, Do Not Fax, Do Not E-mail, Do Not Mail).

About Laddering WorksLaddering Works is a marketing

strategy � rm that combines a deep pro-prietary understanding of consumers with data collected by an organization to create actionable move forward strate-gies for the world’s leading brands. Led by industry experts, Laddering Works provides a structured approach that focuses companies and teams on what really matters - the buyers of their products or services. This focus on the consumer identi� es near term opportunities and de� nes move forward strategic roadmaps.

End Notes1 Baymard Institute, 2013 (http://baymard.com/lists/cart-abandonment-rate)2 Forrester, 20113 Invesp, 2012 (http://www.invesp.com/blog/cro/shopping-cart-abandonment-rate-statistics-infographic.html)4 Forbes, 2012 (forbes.com/sites/groupthink/2012/08/30/cyber-monday-understanding-consumer-behavior/)5 Kukar-Kinney, Close 2009 (Academy of Marketing Science)6 Nielsen, 2012 (nielsen.com/us/en/newswire/2012/how-us-smartphone-and-tablet-owners-use-their-devices-for-shopping.html)7 Laddering: Unlocking the Potenial of Consumer Behavior, 2013.8 Forrester, 2011

For more information...PossibleNOW: Call (800) 585-4888 or (770) 255-1020, e-mail info(at)possiblenow(dot)com or visit http://www.possiblenow.com

Laddering Works: Please visit www.ladderingworks.com, call 404-375-2235 or e-mail [email protected]

the last click: addressing mobile shopping cart …...the last click: addressing mobile shopping...

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