Artificial Intelligence (AI) has revolutionized the way eCommerce businesses operate. AI has improved several aspects of the industry, from lead generation to data collection. Customer-facing services are being transformed by machine learning algorithms concurrently.
Presently, eCommerce merchants adopt several tactics like automated logistics, customer email syncing, smart sales predictions, etc., to integrate AI into their processes and accomplish their sales targets.
One of the ways AI can boost business performance is to lower digital shopping cart abandonment – which poses the biggest challenge for the eCommerce industry and leads to losses.
What Is Shopping Cart Abandonment?
When a prospective customer begins the checkout process for an online order but abandons it before completing the transaction, it is known as shopping cart abandonment. Any item that a shopper adds to their shopping cart but never completes the transaction for is labeled as abandoned.
Going by reports, an average eCommerce store faces a loss of over 75% of its sales due to cart abandonment, which can rise as high as 83% in some cases. It is why shopping cart abandonment is a problem for retailers.
Top 6 Reasons for Digital Shopping Cart Abandonment
Let’s dive right in and look at some typical concerns that lead to shopping cart abandonment on your eCommerce website:
1. Unexpected Shipping-Related Charges
Hidden expenses are the leading cause of visitors abandoning their shopping carts on a large scale. In fact, almost one-third of all shoppers indicate it as a reason for cart abandonment.
Other hidden costs like tariffs or required complementary items, on the other hand, can create a negative impact. Such additional expenses irritate and annoy the customers right away after they show up in the final cart value.
2. Reluctancy to Register for an Online Account
Customers demand convenience from you. They want things done swiftly. A primary source of friction is spending more time and effort than anticipated. When prompted to register a new user account, a significant proportion of cart abandoners doesn’t complete their transaction.
3. Payment-Related Concerns
Customers usually have definite preferences regarding their payment methods and will only finish a purchase if their preferred method is available. Thus, the lack of diverse payment options could be a big reason for cart abandonment on your eCommerce platform.
Moreover, issues pertaining to payment security also stop them from completing the purchase. Website design flaws, obsolete layouts, broken graphics, and a lack of an SSL certificate are all major red flags.
4. Complicated Checkout Process
Your shoppers have a short attention span. So if the checkout process is too complicated or time demanding, they won’t hesitate to abandon it. Irrelevant forms frequently cause discomfort and might even be frustrating. All of these could lead to a poor purchasing experience on your website.
5. Technical Glitches on the eCommerce Site
Technical glitches and faults affect all technologies. Errors, crashes, and long load times on the website are key hindrances to making a purchase, and they contribute to a sense of insecurity on the site. These issues generally arise when the code of the checkout page isn’t correctly optimized and periodically updated.
6. Adding to Cart for Browsing Only
Many individuals who add products to their cart but do not complete them simply explore with no intention of purchasing. Customers frequently add products to their cart to keep track of them. It’s not unusual for shoppers to leave a store with the intention of returning. Many people will come back multiple times before completing a purchase.
How Does AI Help In the Recovery of Digital Shopping Cart Abandonment?
Shopping cart recovery is a crucial tactic for dealing with cart abandonment in addition to refining and optimizing the shopping cart experience. Regardless of how hard you try to prevent cart abandonment, some customers will always leave your site by checking out without purchasing any product. It is where cart recovery comes into play to try to reclaim a customer who has already left your eCommerce site.
eCommerce and Shopify merchants deploy Artificial intelligence to mitigate the digital shopping cart abandonment rates and drive more sales. AI and machine learning tools analyze a customer’s digital body language to determine when they are likely to depart the cart. They accomplish this by employing sophisticated analytical algorithms that quantify a large number of data points in real-time.
This way, you could comprehend the path that leads to cart abandonment on your eCommerce site and engage with customers the right way to keep them on course.
Here are three main AI tactics you should implement for effective digital shopping cart recovery and reduce the effects of shopping cart abandonment on your eCommerce site:
1. Abandoned Cart Email Marketing
If the visitor provided their email address during the checkout process and then left your site, you can reengage them through an abandonment email. AI-enabled automated systems can provide email marketing solutions by targeting users with reminder emails about the product they left without purchasing. An email offering a discount or a promo code is an effective way to persuade customers to return to your site and complete the transaction.
User data personalization is another productive technique to target customers based on their preferences and past purchases. Receiving an email with relevant content and recommendations that display your concern about a customer could be a long-term strategy towards recouping a lost sale.
2. Abandoned Cart Retargeting
Advertisement retargeting is another powerful tool for better digital shopping cart recovery. Retargeting advertising relies on cookies that help eCommerce merchants to keep track of the pages visited by the user and records the actions they have made while on the site.
You can use the data to generate advertising tailored to specific individuals and provide a personalized experience. You may put an ad on your checkout page using digital marketing platforms like Facebook and Google Ads to remarket to those users.
3. Personalized Offers on the Cart Page
Showing instant individualized offers on cart products is a powerful way to avoid Digital shopping cart abandonment. With AI you can offer attractive offers like an extra discount on cart products, free shipping, or loyalty points in real-time
The Bottom Line
eCommerce sites must monitor their shopping cart abandonment rates because a higher one is indicative of a poor customer experience or a broken sales funnel.
By tracking this crucial metric, you can successfully lower cart abandonment and drive in more sales, revenue, and profitability. AI technology brings in the right set of tools to put you forward in this game.