Millennials have a unique predilection to abandon their shopping cart on digital commerce sites. But there’s more to the story than meets the eye.
They are impatient, extremely web savvy and tremendously price conscious. They are unlikely to tolerate any website-related technological delay and are eager to be served up concise – but specific and detailed – product information. They are pretty much contemptuous of shipping costs. They are also inured with the practice of using their digital shopping cart as a virtual storage unit.
Yes millennials, the demographic that by definition consists of those consumers born between 1982 and 2000, are broadly considered to be both the most highly coveted consumers by marketers as well as the most voracious consumers of digital commerce.
They are also the group most likely to engage in Shopping Cart Abandonment.
So why do they do it?
Shipping costs are a sticking point, so is price, a lack of product information on the site, poorly designed checkouts, leakage issues within certain stages of the checkout funnel and perhaps most tellingly, insufficient funds.
Most millennials have become accustomed to utilizing their digital shopping cart as a virtual storage unit. In fact, 47 per cent of millennials openly place products in digital shopping carts and abandon them in the hope the digital commerce site will attempt to lure them back with a promotional email or advertisement.
Here’s why you should care about Shopping Cart Abandonment Rate
Shopping Cart Abandonment Rate is generated by measuring the number of visitors placing goods in a site’s digital shopping cart but failing, for any number of reasons, to complete the final checkout process and pay for the product.
Put simply, the higher your Shopping Cart Abandonment Rate is, the more potential revenue your site loses. Although arguably the most pressing issue in digital commerce right now, few sites are properly tracking the cart abandonment rate metric. Even fewer are accurately tracking exactly who the visitors are that are abandoning their cart, what products are being abandoned and the value of the cart abandonment or potential lost revenue.
A unique challenge from a unique demographic
Millennials are an intriguing conundrum for digital commerce marketers. They have grown up in the digital marketplace. And unlike other demographics, they are both inherently comfortable and extremely familiar with it.
Mobile is key for millennials too: while an average of 40 per cent of shoppers overall utilize shopping apps on their tablets and smartphones, some 60 per cent of millennials indulge in this.
For millennials, online shopping is not simply just online shopping, rather it’s a form of inexpensive entertainment. While bricks and mortar malls are slowly becoming redundant, previous generations formerly used them as a way to entertain themselves. For this extremely price sensitive group today, browsing digital commerce sites is something they do for fun.
The millennial mindset remains very much a different commercial outlook to all other age brackets – hence their propensity to abandon their shopping carts.
Here is why millennials are abandoning their carts
Mindshare North America’s retail arm Shop+ recently published a report that analyzed the responses of more than 1,000 shoppers aged between 18 and 34 years.
Similarly, 26 per cent of millennials will intentionally fake their birthdate when disclosing it to a retailer in the hope of landing a better discount when they get to the checkout (17 per cent of adults do this, via Ad Week).
A further 36 per cent of millennials told Mindshare that they have offered up multiple email addresses to retailers, once again in the hope of being able to land additional deals (this figure is slightly lower for adults: 30 per cent).
Millennials are also frugal and extremely savvy when it comes to price. 66 per cent are very comfortable waiting until a product goes on sale until they ultimately purchase it.
Correspondingly, 39 per cent of millennials say they clear their Google search history when visiting digital commerce sites in an attempt to land the best price.
What can be done about it?
While these numbers may raise the eyebrows of some readers – particularly digital commerce executives and digital marketers – they also help identify exactly where the real value of Cart Abandonment Optimization lies.
If you don’t know who your customers are, are not able to grasp their buyer behavior and understand why they are abandoning their shopping carts and at what stage in the checkout funnel this is taking place, you are unlikely to have any clear sense as to how much revenue is being lost from the practice.
The best solution is to obtain unique information about why millennials (or indeed any visitor to your site) abandons their digital shopping cart including, most importantly, at what point in the checkout funnel they were at when it occurred. For this, you need proper analytics to execute a more efficient and effective marketing strategy.
Shopping Cart Abandonment Rate – a key optimization solution
One key component of the most surefire Customer Experience Optimization (CXO) solution is a Cart Abandonment Rate Analytics module. This will help you understand how much potential revenue is being lost and truly understand the impact of your visitors abandoning their digital carts.
HiConversion offers a full funnel analysis, which allows you to achieve continuous optimization of the whole customer experience. Our information can impact revenue, measurement, time and data. It will also ensure you can take decisive action to prevent abandonment.
Learn how to Reduce your Shopping Cart Abandonment click here.