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Personalized Experiences Curb Cart Abandonment, Increase Conversion

Personalized shopping experiences are helpful not only in capturing faithful customers, but they are also helping to decreasing cart abandonment and increasing online sales.

According to an E-commerce Quarterly report released by Monetate, the leading provider of multichannel personalization for the world’s brands, personalized customer experiences helped the industry reach a record-breaking $51 billion in revenue this past holiday shopping season.

The company’s report revealed that Monetate customers outperformed the industry average in four main categories: bounce rate, add-to-cart rate, cart abandonment rate and conversion rate.

Monetate customers saw abandoned online shopping cart rates of 43.65%, 20 percent less than the rest of the industry in the fourth quarter of 2014, while the industry average reveals retailers experienced abandoned cart rates of 65.98%.

One of Monetate’s clients, a sporting goods retailer, addressed their tablet customers, who exhibited different behaviors than their desktop customers, by serving them a less distracting checkout page with fewer links. These changes led to a 23.3% cart abandonment rate.

Industry average conversion rates were 2.84%, while Monetate customers were at 6.44%. Industry average bounce rates were 30.2%, with Monetate customers’ rates at 19.94%.

Another Monetate client, a luxury clothing brand, boosted conversion rates by sending existing customers emails with a “VIP” message and promotion, encouraging them to visit the brand’s site. The company also used promotional banners to remind the customer of the promotion on every page they visited, gaining a 6.67% conversion rate.

The add-to-cart industry average was 8.35%, a significant increase compared to 8 percent in the same period in 2013, while Monetate’s customer average was 20.36%, outperforming the industry by more than 12 percent, according to the company.

“It’s evident that personalized, curated experiences across multiple channels continue to be a driving factor for successful retail brands,” Lucinda Duncalfe, Monetate’s CEO said. “Consumers expect more personal experiences across every touchpoint that reflect how they’ve interacted with a brand in the past. We’re seeing that the brands who are driving faster to meet that expectation are enjoying tremendous ROI, and leaving their less customer-focused competitors in the dust.”