In this article, you’ll find
- Understanding Cart Abandonment
- How To Calculate Cart Abandonment Rate
- Common Reasons For Cart Abandonment
- The Power of Product Bundling
- How To Leverage Product Bundling To Reduce Cart Abandonment Rates
- Optimize The Shopping Experience To Reduce Cart Abandonment
- Conclusion
- FAQs
A customer has been checking out a bestselling product on an online store for weeks now. Finally, after days of window shopping, they add the item to their cart and move on to the checkout process. But unfortunately, halfway through, they just disappear!
This scenario feels all too familiar, doesn’t it?
Cart abandonment is incredibly common, with 69.99% of shoppers ditching their carts before checkout. There can be a variety of reasons why this occurs. Perhaps your customer is pushing the purchase to the near future, or it can be the lengthy registration process that put them off.
But there is something you can do to combat cart abandonment. We are talking about the power of product bundling. How do you do that? What exactly is it? Don’t worry. We will discuss all this and more so you can transform cart abandonment into successful checkouts. Let’s dive in!
Understanding Cart Abandonment
Simply put, shopping cart abandonment is when a potential customer adds items to their virtual carts but fails to make a purchase. Regarding revenue, e-commerce brands lose approximately $18 billion each year due to cart abandonment.
There can be a myriad of reasons why this phenomenon occurs. High shipping charges, limited payment options, or unexpected distractions can be a few.
When you understand these intricacies, it makes it easier for you to come up with strategies to reduce cart abandonment rates and instead convert them into successful sales.
How To Calculate Cart Abandonment Rate
To calculate the shopping cart abandonment rate, subtract the number of completed orders from the total number of shopping carts created. Next, divide this result by the total number of carts created, and finally, multiply the quotient by 100 to express it as a percentage.
For example, if you created 1000 carts but only 500 resulted in completed orders, then your card abandonment rate = {(1000-500)/1000}x100 = 50%
You can also use cart abandonment calculators available online to help you out!
Common Reasons For Cart Abandonment
Knowing why customers abandon their carts can help you pinpoint the specific problem areas. You can use this information to make the necessary adjustments to improve your profits. So, let’s unpack the most common reasons for cart abandonment.
Lengthy Registration or Account Creation Process
Imagine you are eager to purchase a new skin serum. You come across a new online store offering a whopping 20% discount. You want to grab this lucrative deal, of course. So, you add the product to your cart and proceed to checkout. However, the registration process is so lengthy that you cancel your purchase.
This is seen in more than 50% of customers. People are more likely to abandon their carts if the checkout process is longer than 30 seconds. Fret not, this is what you can do to ensure your checkout process is easy-breezy!
- Consider guest checkout options
- Implement social login features
- Simplify the entire process
- Have multiple payment options
Confusing Check-Out Process
If there are unexpected charges or errors, or the steps are unclear, it can frustrate your customers and deter them from purchasing. The idea is to simplify the checkout process as much as possible. Minimize any complexities, clearly communicate costs, and eliminate all unnecessary steps.
No Discounts or Promo Codes
Today, almost 90% of shoppers use a discount coupon to shop, and 93% say discounts and offers are important factors when deciding whether or not to purchase from a retailer or brand.
So, the absence of discounts or promo codes can adversely impact customer satisfaction and potentially lead to cart abandonment. While you cannot offer discounts every single day, here are a few things you can do.
- Provide occasional offers and discounts
- Have loyalty or membership programs to reward repeat customers
- Send limited-time offers in emails to customers who abandoned their cart to encourage a purchase.
Shipping Charges
Nothing is more off-putting than unexpected costs. Almost 48% of shoppers don’t proceed with the checkout process if the shipping charges are high. Customers want transparency and reasonable shipping costs. Therefore, you must optimize your shipping strategy to ensure you don’t lose your valuable customers.
Longer Than Expected Delivery Dates
Some online stores only reveal the delivery dates during checkout. And longer delivery dates, beyond customer expectations, can be disappointing, to say the least. Slow delivery is one of the top three reasons why customers ditch their purchases. Therefore, it is essential to manage expectations and maintain a sense of transparency.
No Returns or Refunds
Online shopping carries a certain risk factor as you cannot physically see or try a product. But when you have a strict no-return or refund policy, it can create anxiety about the product’s quality and satisfaction. That’s not what you want.
You must build trust and encourage purchases with a customer-friendly return and refund policy where you clearly state all the conditions and procedures.
The Power of Product Bundling
Imagine you are at McDonald’s, ordering your favorite burger. You can upgrade it into a meal, including fries and a beverage, for a slight additional charge. At the same time, ordering them separately would cost you more. This is product bundling. The bundled option provides more value, so it is more likely that you will go with it!
Amazon effectively uses this technique to reduce cart abandonments. They often combine related products or offer package deals to lure customers into buying more items together.
Product bundling can be used by you, too, as it is an effective strategy to combat cart abandonment. Here, you entice your customers with multiple products or services combined into a single package, often at a discounted rate.
This strategy not only adds value to the original purchase but can also simplify decision-making, encouraging your customers to complete their purchase immediately.
How To Leverage Product Bundling To Reduce Cart Abandonment Rates
Want to include this savvy strategy to curb cart abandonment? This is how you can do it.
1. Understand Your Audience
The first step before you proceed is to understand your audience so you can cater to their needs. Analyze their preferences and shopping behavior. Next, identify products that go well together. You cannot bundle a shampoo and a skin serum, can you? The items in a product bundle must naturally complement each other.
Customize the bundles to specific customers and use clear and persuasive messaging like the example below!
You can also experiment with different bundle options and pricing to optimize appeal. See what resonates with your audience and go from there. The better you know your audience, the better product bundles you can create.
2. Set Competitive Prices
Let’s say you are browsing for a sunscreen lotion on your favorite e-commerce website. They have an amazing bundled offer with all the things you need, but the pricing is the same as if you bought them separately. It is most likely that you will proceed only with the sunscreen because the bundled offer is not lucrative enough.
As you can see in the example below. Amazon has not only offered a product bundle complementing each other, but a discount is also offered.
The main strategy with product bundling must be to create irresistible offers that will make your customers want to click on ‘buy now.’ Research is the key.
Analyze competitor’s pricing strategies and conduct thorough market research. It is crucial to strike a balance between enticing deals and maintaining profitability.
3. Create Appealing Offers
Today, there are approximately 26.5 million online stores. So, what are you doing to stand out and reduce cart abandonment?
Well, you can always create appealing offers with your product bundling to combat cart abandonment.
Once you apply the strategy, there are so many things you can do to make your offers irresistible. From buy one, get one to limited-time deals, let your creativity flow. Don’t shy away from experimenting.
Make sure you match your offers to your customer’s preferences. You can always take a look at their browsing or purchase history to get a clear picture.
When you consistently provide the best deals, you can capture customer interest and boost sales and revenue.
Promote Bundles Effectively
Promotion is so important. Otherwise, how will your customers even know you are offering something special?
When you opt for product bundling, highlight the value and the convenience of the product along with any discounts you may be offering. Take a look at the example below!
Use all the tools available to you. It can be social media or emails and whatnot! Whatever works for your target group, go right at it. That said, use clear, eye-catching visuals and persuasive copy to communicate the benefits.
Promoting bundles can also be done on product pages and even during checkout to ensure your customer doesn’t miss them.
However, implement personalized recommendations based on customer preferences and browsing history. You can always suggest relevant bundles that align with their interests. You can also create limited-time product bundle offers to create a sense of urgency and encourage immediate action.
4. Offer Customizable Bundles
Imagine you visit a restaurant with a ‘build your own meal’ plan. Right from the main dish to your drink, you can choose from various items. Each combination offers a bundled price that’s lower than if you were to order each item separately.
It’s sure to enhance your meal experience. So, why not do the same with product bundling for your online store?
Customizable bundles can be great because they allow your customers to create their own combinations. Here, they select products that match their preferences and needs.
However, it is essential that you make use of user-friendly tools so the experience doesn’t turn into something overwhelming. Take a look at the example below!
By giving customers the ability to tweak the bundles to their liking, you can increase engagement, satisfaction, and even conversions. This ultimately combats cart abandonment rates. But make sure you clearly display the benefits, such as any cost savings or other incentives
5. Monitor and Optimize
If you want your product bundling strategy to be a success, monitoring and optimizing as you go is crucial. Continuously analyze your key metrics like conversion rates or average order value to understand the effectiveness of your bundled offer. Collect all customer feedback you receive and tweak the strategy when necessary.
You can always adjust the pricing or the combination based on data-driven insights.
Make sure you keep updating and refreshing your bundles to align with changing customer needs and market trends. This can help you make the most of your product bundling.
6. Use Cross-Sell and Upsell
Cross-selling is when you offer related products along with the main item being purchased. Whereas upselling is when you encourage your customer to purchase a higher-priced bundle with more features and benefits.
When you strategically implement these strategies with product bundling, it can increase the average order value.
Research showed that there is a 30%-50% increase in customer lifetime value when cross-selling is done right. In the example below, you can take a look at Amazon’s cross-selling with their infamous ‘frequently bought together’ strategy. Since the promotion takes place in the sidebar, it doesn’t distract the customer, yet the message is out there.
For instance, a laptop purchase might include cross-sell options for a laptop bag, mouse, or extended warranty, while upsell options could offer premium software or hardware upgrades.
7. Utilize the Right Tools and Technology
Using the right tools and technology can make it easier for you to streamline the product bundling process while ensuring absolute customer satisfaction. You can always take a look at e-commerce software or apps that bring you robust product bundling capabilities.
These tools can optimize the process, reduce cart abandonment, and even boost sales by offering tailored bundles that resonate with customers.
Shopify Apps To Help You With Product Bundling
Shopify brings you a range of apps to make it easier to implement product bundling. Some of the most popular ones are:
BoxBuilder
BoxBuilder is limitless. You can design bundles the way you imagined them without restrictions on the number of bundles, products, or steps.
Bundler – Product Bundles
Bundler makes creating product bundles and discount creation for your Shopify store easier.
Bold Bundles – Product Bundles
Bold Bundles allows you to create customizable bundles, BOGO offers, and more. While it is not free, they frequently offer a trial period so you can see if it is the right fit for you.
Fast Bundle
Fast Bundle is an app that can create all types of bundles and combo products. They also have a free plan available to see if it aligns with your needs.
Bundle Builder
Bundle Builder allows you to create customized product bundles and even provides advanced options.
Optimize The Shopping Experience To Reduce Cart Abandonment
How do you attract your customers? By making their shopping experience as seamless as possible. Here’s how you do it.
- Simplify the checkout process has minimal steps and is not confusing.
- Ensure your online store is mobile-friendly, as the majority of shoppers make use of smartphones for online purchases.
- Display all costs, including shipping fees and taxes, upfront to avoid surprises.
- Offer a guest checkout option to reduce friction for first-time buyers.
- Have a hassle-free return policy to ease concerns about product satisfaction.
- Provide excellent customer support so you can guide your customers whenever they need assistance.
- Offer personalized product recommendations and discounts.
- To recover the abandoned cart, send follow-up emails with incentives.
- Keep analyzing the data and the user feedback to identify gaps and address the pain points.
Utilize The Power of Product Bundling Today!
Product bundling is easy and effective and holds the power to transform your e-commerce game. It not only helps you curb abandoned carts but also enhances customer experience. However, make sure you customize product bundling based on your audience’s preferences along with irresistible deals. It is not only about selling products but providing the right solution for a positive shopping journey. Take this as your sign to seize this opportunity and make cart abandonment a thing of the past with product bundling.
FAQs
What is an example of a bundle product?
Here’s an example of a product bundle. Let’s say you are looking for a pair of jeans. The retailer may offer other complementary products, such as a top and sandals, that go well with the original purchase at a lower price.
What is the use of product bundling?
Some of the main uses of product bundling include:
- Increase in sales
- Boosts average order value
- Helps clear inventory, especially slow-moving products
- Enhances customer experience
- Reduces cart abandonment
Are package deals the same as product bundling?
Yes. Sometimes, product bundling may also be referred to as package deals.
