If you're an online retailer using Shopify, you know how important it is to keep track of your sales and revenue. But what about the customers who start the checkout process but don't complete it? These abandoned carts can be a missed opportunity for your business. Fortunately, Shopify's Abandoned Cart Recovery feature allows you to track and analyze these carts, giving you insights that can help you recover sales and improve your checkout process. In this guide, we'll show you how to set up and use Abandoned Cart Recovery in Shopify, step by step.
Understanding Abandoned Carts in Shopify
What is an Abandoned Cart?
First, let's define what we mean by "abandoned cart." An abandoned cart is when a customer adds items to their online shopping cart but doesn't complete the checkout process. There are many reasons why this might happen, including unexpected shipping costs, a confusing checkout process, or simply being distracted and forgetting to complete the purchase.
It's important to note that abandoned carts are not unique to online shopping. In brick-and-mortar stores, customers may leave items in their shopping cart and decide not to purchase them. However, in an online store, abandoned carts are easier to track and analyze.
Why Abandoned Carts Matter for Your Business
However, just because a customer doesn't complete their purchase doesn't mean they're lost forever. In fact, abandoned carts can be a valuable opportunity for your business to recover sales. By tracking and analyzing abandoned carts, you can identify patterns and trends, and use this information to make improvements to your checkout process and marketing strategies.
For example, if you notice that many customers are abandoning their carts because of unexpected shipping costs, you could consider offering free shipping or more transparent shipping costs. If customers are having trouble navigating your checkout process, you could simplify the process or provide more guidance.
It's also important to consider the impact that abandoned carts can have on your brand. If customers consistently have a negative experience with your checkout process, they may be less likely to return to your store in the future.
The Impact of Abandoned Carts on Sales and Conversion Rates
According to a survey by Baymard Institute, the average online shopping cart abandonment rate is 69.57%. That means nearly 7 out of 10 customers who start the checkout process won't complete it. This can have a significant impact on your revenue and conversion rates.
However, addressing abandoned carts can have a positive impact on sales. According to SaleCycle, sending abandoned cart emails can result in a 29% conversion rate, on average. These emails remind customers of the items they left in their cart and encourage them to complete their purchase. You could also consider offering a discount or other incentive to encourage customers to complete their purchase.
In addition to abandoned cart emails, there are other strategies you can use to reduce the rate of abandoned carts. For example, you could simplify your checkout process, provide clear and transparent pricing, or offer live chat support to help customers with any questions or concerns they may have.
In conclusion, abandoned carts are a common challenge for online retailers, but they also present an opportunity to improve your business and recover sales. By understanding why customers abandon their carts, and implementing strategies to address these issues, you can improve your conversion rates and build a stronger, more loyal customer base.
Setting Up Shopify to Track Abandoned Carts
Enabling Abandoned Cart Recovery
To get started with tracking abandoned carts in Shopify, you need to enable Abandoned Cart Recovery. This feature is available on all Shopify plans, but you'll need to be on the Basic Shopify plan or higher to customize the recovery emails.
- Log in to your Shopify account and go to the Settings menu.
- Click on Checkout, then scroll down to the Abandoned Checkouts section.
- Check the box next to Automatically send abandoned checkout emails to customers.
You can choose how long after a customer abandons their cart you want to wait before sending the recovery email. The default is 10 hours, but you can choose a different time period if you prefer. You can also customize the subject line and message of the email to match your branding and voice. Be sure to include a clear call to action and any incentives, such as a discount or free shipping, to entice the customer to complete their purchase.
Customizing Abandoned Cart Email Notifications
As mentioned above, with the Basic Shopify plan or higher, you can customize the content of the abandoned cart recovery emails. This allows you to add more personalized touches and aesthetics to the email, boosting the impact of the message.
- Go to the Notifications tab in the Settings menu.
- Scroll to the Abandoned Checkout Notifications section.
- Click on the Edit button next to the email notification you want to customize.
- Use the HTML editor to make changes to the email body and layout.
- Click Save when you're happy with your changes.
Integrating Third-Party Tools for Enhanced Tracking
If you want more advanced tracking and analytics for your abandoned carts, you can integrate third-party tools with your Shopify store. These tools can provide more detailed data on customer behavior and help you make more informed decisions on how to improve your checkout process. Popular options include Google Analytics, Kissmetrics, and Mixpanel.
Analyzing Abandoned Cart Data in Shopify
Accessing the Abandoned Cart Dashboard
Once you've enabled Abandoned Cart Recovery, you can start tracking your abandoned carts in Shopify. To access the abandoned cart dashboard, follow these steps:
- Go to the Orders menu in your Shopify admin.
- Click on Abandoned Checkouts.
This will take you to a list of all the carts that have been abandoned on your store. You can view details on each cart, including the customer's email address, items in the cart, and when the cart was abandoned. You can also choose to manually send a recovery email to the customer directly from this page.
Identifying Patterns and Trends in Abandoned Carts
As you start to accumulate more data on abandoned carts, you can start to identify patterns and trends. This can help you make informed decisions on how to improve your checkout process and reduce your abandonment rate.
Are customers abandoning their carts at a particular stage in the checkout process? Are certain products or categories more likely to be abandoned than others? Are there common reasons customers are giving for abandoning their carts? These insights can all help you make improvements that will increase your conversion rates.
Segmenting Abandoned Carts by Customer Type and Behavior
Another useful feature of Shopify's Abandoned Cart Recovery is the ability to segment your customer data. You can use this feature to target customers with more personalized marketing messages, based on their behavior and interests.
For example, you might create a segment of customers who have abandoned their carts multiple times, or a segment of customers who have abandoned high-value items. You can then send targeted recovery emails to these segments, with customized messaging and incentives. This can be a more effective way to recover sales, as it speaks directly to the customer's specific needs and behaviors.Strategies for Reducing Abandoned Carts
Improving the Checkout Process
While tracking and analyzing abandoned carts can help you recover lost sales, the best approach is to prevent carts from being abandoned in the first place. One of the most effective ways to do this is by optimizing your checkout process. A few tips for streamlining your checkout process include:
- Offering guest checkout options, so customers don't have to create an account.
- Reducing the number of form fields customers need to fill out.
- Displaying progress indicators, so customers know how many steps are left in the checkout process.
- Using clear, concise language throughout the checkout process.
Offering Incentives and Discounts
Another way to encourage customers to complete their purchases is by offering incentives and discounts. Consider offering a free gift with purchase, a limited-time discount code, or free shipping for orders over a certain amount. These incentives can help convince customers to complete their purchase, even if they were on the fence before.
Retargeting and Remarketing to Abandoned Cart Customers
Finally, retargeting and remarketing can be effective strategies for bringing customers back to complete their purchase. You can use targeted ads, social media posts, and email campaigns to remind customers of the items they left in their cart and encourage them to return to your site to complete their purchase. Be sure to include any incentives or discounts to sweeten the deal.
By using Shopify's Abandoned Cart Recovery feature, tracking and analyzing your abandoned carts can help you recover sales and improve your checkout process. Remember to enable Abandoned Cart Recovery, customize your recovery emails, and use third-party tools for enhanced tracking and analytics. Use the data you collect to identify patterns and trends, segment your customer data, and create targeted marketing messages. With these strategies in place, you'll be able to reduce your abandonment rate and increase your sales and revenue.