How to Overcome Shopping Cart Abandonment? Amp Up Your Retail Experience

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How to Overcome Shopping Cart Abandonment? Amp Up Your Retail Experience

By Berkley Bowen, CEO of Cue Connect - 09/06/2016
According to a study by SaleCycle, digital shopping cart abandonment is at a worldwide high, with nearly 75 percent of shoppers failing to carry-through with a purchase. This means that an overwhelming majority of shoppers have identified an item they expressed an intent to purchase, but for some reason determined it was not the right time to buy, thus abandoning the item that was, at one time, the object of their affection.

In order to salvage these customers, retailers are racing through a series of sales, promotions and customer rewards but, in doing so, are diluting the overall customer experience. In order to combat shopping cart abandonment and push customers to make a purchase, brands need take a page out of a traditional luxury retailer's book and create limited and personalized experiences for these engaged shoppers. By creating luxury experiences for every shopper, brands can develop meaningful relationships that will motivate customers to not only make a purchase, but also to come back for more.

Redefining luxury
Traditionally, luxury was a status symbol, associated with high-end purchases and experiences, including personal shoppers and exclusive invites to fashion shows. However, with more than 80 million Millennials in the United States who are expected to spend approximately $600 billion by 2020, the next wave of shoppers is redefining the term, and retailers should take note.

These shoppers are connected and can have almost anything they want, when they want it. However, they are less affluent than the generation before them and don't want their purchases to define who they are. They would rather spend their money on unique experiences and get value out of each purchase they make. Brands that embrace this shift in expectations and work to make strong connections with these shoppers before they hit their peak spending power can create relationships that last for decades. 

As such, retailers should create luxury experiences for every shopper by taking the time to understand their preferences and create new and innovative shopping experiences that make them feel special and compel them to enter a store, click on a website and purchase an item.

How to reach the next-generation shopper
While this next generation of shoppers is redefining the term luxury, technology is enabling these desired shopping experiences to come to fruition for every consumer. Shopper intelligence tools allow retailers to collect data and interact with consumers on a much more personalized level. Retailers can unlock valuable insights from existing shopper behaviors — such as items they are sharing with their friends or saving on their wishlist — to integrate more personalized touchpoints into their everyday engagement strategies. For example, sending freebies on their customer's birthday, pushing out custom alerts on new or trending items and personalizing their messages based on life events, make customers feel like they really matter.

Retailers that have strategies like this in place and embrace the new definition of luxury can exceed shopper's demands while also being empathetic to their wants and needs.

Perfecting experiences to attract this new wave of shoppers
While luxury experiences are just one way to reach this new wave of shoppers, retailers can also use data-driven insights on an individual shopper's behavior and preferences to deliver any experience that consumers desire – including active, curated and connected shopping experiences. Examples of these include:
  • Subscription services: Brands such as Rent the Runway, Le Tote and Birchbox let consumers define what they are looking for and test the latest trends without the cost commitment. Using this model, brands can determine which products were a success versus which ones were not, and better tailor future deliveries based on those insights.
  • Tiered loyalty programs: A recent study conducted by Cue Connect found 47.6 percent of consumer believe that they feel most valued by retailers who reward them with loyalty points. Given this, retailers are customizing their loyalty strategy to the aspirations of their customers. Tiered loyalty programs categorize shoppers based on the amount of money that they spend and the more they spend, the better the rewards. High-end retailers are even creating “Members Only” rewards programs that offer their own incentives with a monthly or a yearly fee.
  • Augmented reality dressing rooms: Brands are also beginning to install iPads in their changing rooms to help customers select the items they want. Customers can scan items they have selected onto the iPad as soon as they enter the changing room, and request different sizes or colors to be brought to them if they need it. Having a log-in can allow retailers to utilize this information both online and in store for the next time the customer shops.
  • Exclusive events: Another trend in retail is hosting in-store events that are exclusive to top shoppers or specific groups of shoppers. Having after-hours sales, parties for top spenders, or providing makeovers are just a few of the ways retailers are personalizing each experience.
The next-generation shopper is redefining the way brands are reaching their customers. With CRM technology and social sharing tools, brands can create meaningful relationships and add a layer of humanity to each personalized touchpoint. With the ability to remind customers of items they are interested in or share recommendations based on past history, brands can make customers feel that much more special.

Berkley Bowen is CEO of Cue Connect, an onsite marketing platform for commerce.