Now imagine seven of those customers walk away. That’s right – with no warning, they simply turn around and head out the door, leaving their seven trolleys at the counter and, depending on the nature of your business, potentially thousands of dollars in their pockets. Heartbreaking, right? Now imagine that same scenario happening hour after hour, day after day, week after week.
Such is the reality for eCommerce businesses and the headache of shopping cart abandonment.
While reasons vary, the fact is far too many customers begin the online check-out process but fail to complete their purchases. Independent web UX researcher Baymard Institute, which has tracked the global cart abandonment rates for 12 years, found almost 70% of eCommerce customers never complete their purchases. Put another way, for every $300 a retailer earns in 2022, an average of $700 is lost despite those sales being within reach.
Needless to say, it is not good enough for online retailers to turn a blind eye to such missed sales opportunities or downplay their impact because they did not physically see the customers leave their shopping baskets on the counter. Every business worth its salt should be doing all it can to convert walkouts into opt-ins and one way they can do so is by introducing chatbots into the online conversation.
There is a myriad of reasons for cart abandonment in eCommerce stores, from unexpectedly high or hidden shipping costs to slow upload times and complicated check-out processes. The COVID-19 pandemic has also seen a spike in abandonment rates due to more customers shopping online and an increasing number of people visiting multiple sites to compare prices. One survey actually found 45% of Gen Z shoppers will browse several eCommerce sites before making any purchases, compared to only 26% of customers aged above 40.
Given such statistics, it is little wonder online retailers are stepping up their efforts to tackle cart abandonment and one option that is proving increasingly attractive is the use of chatbots to help customers take that final step to purchase. One of the great advantages of a physical retail store is the presence of sales assistants who are committed to doing their bit to turn browsing into sales. They help customers find what they’re looking for, explain pricing and possible discounts, and essentially guide them toward the point of sale. Then, once a customer arrives at the check-out, they encounter a check-out operator who is focused on ensuring transactions are completed as quickly as possible and not one person leaves the queue – let alone seven out of 10 people.
While eCommerce saves businesses the cost of paying wages to such staff, there is no doubt they suffer from the absence of the personal touch. Online customers are too often forced to navigate their own way to the purchase point or too easily allowed to abandon their virtual trolley at the last moment. The challenge for eCommerce operators is to fill the gap that would normally be filled by a friendly face or educated voice and that is where chatbots truly shine.
There are essentially two types of chatbots and while both can play a role in eCommerce, one is leading the way in helping turn customer interest into customer sales. While scripted chatbots are programmed to respond in pre-defined ways to specific questions, they fail when presented with a complex query or one not envisaged by the developers.
For this reason, the growing buzz in the chatbot world relates to how artificial intelligence is enhancing the concept. Conversational AI is the set of technologies that enables computers to simulate real conversations, with a ‘synthetic brain’ enabling a machine to understand, process and respond to human language. Befitting a world where people are increasingly comfortable engaging with machines, one study has found 40% of shoppers no longer care if they are helped by an AI tool or a human – just as long as they receive the support they want or need.
Not surprisingly, Conversational AI is a boon for eCommerce retailers given it provides customers with seamless and efficient assistance during the shopping process and, when done well, does so in a manner that is indistinguishable from the same service being delivered by a human.
Sourcing customer information – it is unreasonable to believe chatbots can stop every cart from being abandoned. There will be occasions when nothing can be done to prevent a customer from walking away from a potential purchase but before that happens, chatbots are a great tool for securing information that can be used to help subsequently make the sale. The conversational nature of AI chatbots means sourcing such details does not feel forced, with something as simple as requesting an email address to notify of specials or new stock arrivals opening the door to future sales.
Cart abandonment is a fact of eCommerce life. Savvy online retailers appreciate it is going to happen and factor it into their planning and forecasting. The truly smart operators also know they need to do everything in their power to mitigate the extent to which it occurs and that is why the use of Conversational AI and chatbots is on the rise. Creating seamless check-out procedures is all well and good but the addition of a friendly team member – even if it is a virtual one – can make a huge difference in increasing sales conversions and reducing the nightmare of abandoned carts.
The advancement of digital technology is destined to be one of the 21st century’s greatest business stories but it will quickly become a tale of woe for companies that fail to build digital trust with their consumers. With a recent PwC Pulse survey finding more than 50% of global consumers have become more digital in the past months, here are seven ways to use technology to improve your customer experience or CX in the technological age.