In the fast-paced world of ecommerce, cart abandonment has become a significant challenge for retailers. With the rise of omnichannel fulfillment and the increasing demand for fast and convenient delivery options, the complexity of the fulfillment process has escalated. As consumers’ expectations continue to soar, the importance of delivery and pickup experiences has transitioned from afterthoughts to critical factors influencing buying decisions.
Shoppers now expect immediate access to delivery and pickup options while browsing for products, making collection convenience as crucial as other product attributes. Unfortunately, traditional order management and ecommerce systems were not designed to handle the intricacies of omnichannel fulfillment across multiple locations. Relying on dependable yet slow relational databases, retailers are limited to offering generic fulfillment timeframes, which lack accurate information during the checkout process.
This unfortunate reality leads to poor customer experiences, resulting in approximately 7 out of every 10 online shoppers abandoning their cart. To address this pressing problem, retailers must reevaluate their fulfillment strategies and invest in technologies capable of providing real-time, accurate information. There are three key areas retailers should focus efforts to reduce friction at the point of conversion and start making successful transitions.
Establish a unified basket
The biggest point of friction in today’s retail customer experience is due to the loss of context when transiting between the physical and the digital. A unified cart or basket is a foundational capability that bridges this gap, providing critical connectivity across channels. Shoppers don’t see “channels” the way retailers do – they simply shop. Therefore, retailers are increasingly under pressure to ensure seamless continuity, particularly during transitions between carts and wish lists, alleviating customers from the burden of starting afresh. For brands, embracing a digital first ethos doesn’t mean giving up on physical retail, but amplifying the two, fusing them together seamlessly.
Manhattan Associates’ 2023 Unified Benchmark for Speciality Retail report found that retailers making the most progress in minimising cart abandonment through connecting in-store and online experiences are offering increased visibility of the following in their cart view:
- Inventory visibility: Visibility of real-time available stock across all channels, providing product status by store. If a particular item is unavailable, customers can opt for alternative options or be notified when it becomes available again.
- Available promo codes: Automatically applying available promotional codes to the cart view or ensuring applicable promotions visible for shoppers to easily ‘opt in’ when viewing their cart.
- Integration with loyalty programs: Displaying the customer’s loyalty points and rewards within the cart provides them with the easily accessible option to redeem rewards directly at the cart stage.
The report also found that while the majority of retailers are offering basic capabilities such as inventory visibility on a product detail page (PDP), many are yet to extend this offering to across the board, lacking visibility across the entire shopping journey.
Add value with flexibility
A truly frictionless shopping experience is not just about the convenience of prefilling a customer’s payment details for future transactions, but it’s also about providing customers with a variety of payment options. More often than not, customers have a preferred payment method. By offering a wide range of payment types, both online and in store, retailers are providing that extra bit of flexibility, making a consumer’s purchase decision easier. This process should be simple and convenient for shoppers to pay however they prefer, including through gift cards, loyalty points, store credit, mobile wallets, pay-later apps, store credit cards, and any combination therein. The report also revealed that 40% of shoppers prefer payment flexibility, including the ability to use a combination of modes to make a purchase.
However, offering additional payment options has the potential to make things more complicated, therefore it’s important that retailers have the right technology in place to support a seamless checkout experience. Shoppers look for fast and convenient checkout options, with a majority of cart abandonment occurring due to less-than-ideal shopper experiences at checkout, like a multi-step process. If shoppers can quickly and easily buy what they need, when they need it, and do so using their preferred payment method, not only are they more likely to complete the purchase, but they’re more likely to keep coming back.
Offer fast, accurate delivery promises
If retailers can assist shoppers with important ordering and delivery-related information across the shopping journey, they increase their probability of conversion. What is the earliest I could get this item, and how? Can I order an item for in-store pick-up and another for delivery as part of the same order? Leading retailers offer shoppers a comprehensive set of delivery and pick-up options, focusing not just on speed but on flexibility to fit busy lifestyles, with 77% of shoppers reporting they prefer to have options when selecting their delivery method. They accommodate ordering complexity without compromising checkout convenience, allowing shoppers to select different delivery options for products within the same order.
While only 15% of retailers provide the option to change fulfillment method post order confirmation, Sephora is one retailer who is enabling shoppers to get Buy Online, Pick Up in Store (BOPIS) purchases shipped home in case they are unable to pick it up from the store. With 45% of shoppers prepared to abandon a cart if they’re unhappy with the delivery methods on offer, it’s crucial for retailers to ensure the product pick-up or delivery experience is as good as their shopping journey.
Deliver exceptional experiences
While consumer expectations of purchasing and delivery expand, customer service and experience are arguably the most important elements to get right. Retailers must invest in technologies capable of providing real-time, accurate information to offer a seamless and efficient fulfillment process. By embracing innovation and prioritising customer-centric approaches, retailers can position themselves for long-term success in this rapidly evolving industry.
For more information on how your retail business can reduce instances of cart abandonment, please visit: www.manh.com/en-sg
Written by Richard Wright, Managing Director, SEA, at Manhattan Associates