(Source: B&T Magazine)
Australian consumers have a high tendency to abandon virtual shopping carts, with 57 per cent discarding their carts sometimes or all the time, particularly in the product categories of fashion (67 per cent) and furniture (65 per cent), according to findings from the SAP Consumer Propensity Study.
The research found that Australians are also price-savvy, with 60 per cent of Australian consumers abandoning their shopping chart due to shipping costs and 46 per cent using online carts as a way to compare prices with other brands and websites.
The global survey, which included 1000 Australian participants, asked online consumers about their shopping preferences and motivation to complete a purchase.
The results revealed that while prices are the main driver, with 53 per cent of Australian consumers indicating that discounts and promotions succeed in nudging them to complete a purchase, they also want a personalised shopping experience. Just under a third (32 per cent) are encouraged to buy when multiple purchase deals are offered, and 31 per cent are motivated when the retailer provides quick responses to their queries on the item.
Price is not the only deciding factor, another driver of cart abandonment is stock availability. Almost a third (32 pe cent) of consumers give up on their carts due to out-of-stock items, and 29 per cent don’t purchase if they see longer-than-expected delivery times. The findings demonstrate retailers need to be conscious that their supply chain and logistics decisions can impact sales.
“Reviewing cart abandonment data provides a starting point for retailers to identify friction points in the consumer journey and make improvements to the overall purchasing experience”, said Jennifer Arnold, vice president of marketing, Asia Pacific Japan & Greater China, SAP customer experience.
“Consumer behaviour at the checkout stage, including items selected and discarded, navigation steps, time spent to complete specific actions, the precise point of abandonment, amongst other factors, provide valuable insight into ways the retailer can boost customer engagement and increase conversion.”
The SAP Consumer Propensity Study also revealed what Australian customers want from brands when shopping, with simple online shopping features and experiences winning out over new technologies. The majority (57 per cent) of respondents identified easy exchange and return services as the biggest demand from consumers, followed by comparison tools to check prices and specifications (51 per cent) and a physical store where they can try and buy (42 per cent). These requests ranked higher than chatbots or 24/7 customer service (34 per cnet) and virtual/augmented reality technologies (33 per cent).
Arnold added, “The findings show that customers want the basics done right and are willing to move on to other brands if they aren’t receiving the best experience possible. Today’s customers are taking charge of the relationship they have with brands, and don’t think in terms of B2B or B2C, but ME2B. The results point toward a deeper ask for engaging buying experiences tailored to customers’ individual needs and lifestyles, which extends to ongoing service and support.
“To achieve this, brands need a robust omnichannel approach based on having a view of the customer across all touchpoints at all times, and advanced analytics to anticipate customer behaviours and understand their real-time intent. What’s more, brands need to ensure their business processes and systems are integrated with the experiences they deliver to their customers. With this in place, brands will be able to provide a personalised and responsive consumer experience before and after the checkout process,” Arnold concluded.