Artificial Intelligence (AI) has revolutionized the way eCommerce businesses operate. AI has improved several aspects of the industry, from lead generation to data collection. Customer-facing services are being transformed by machine learning algorithms concurrently.
Presently, eCommerce merchants adopt several tactics like automated logistics, customer email syncing, smart sales predictions, etc., to integrate AI into their processes and accomplish their sales targets.
One of the ways AI can boost business performance is to lower digital shopping cart abandonment — which poses the biggest challenge for the eCommerce industry and leads to losses.
What Is Shopping Cart Abandonment?
When a prospective customer begins the checkout process for an online order but abandons it before completing the transaction, it is known as shopping cart abandonment. Any item that a shopper adds to their shopping cart but never completes the transaction for is labeled as abandoned.
Going by reports, an average eCommerce store faces a loss of over 75% of its sales due to cart abandonment, which can rise as high as 83% in some cases. It is why shopping cart abandonment is a problem for retailers.
Top 6 Reasons for Digital Shopping Cart Abandonment
1. Unexpected Shipping-Related Charges
2. Reluctancy to Register for an Online Account
3. Payment-Related Concerns
4. Complicated Checkout Process
5. Technical Glitches on the eCommerce Site
6. Adding to Cart for Browsing Only
How Does AI Help In the Recovery of Digital Shopping Cart Abandonment?
Shopping cart recovery is a crucial tactic for dealing with cart abandonment in addition to refining and optimizing the shopping cart experience. Regardless of how hard you try to prevent cart abandonment, some customers will always leave your site by checking out without purchasing any product. It is where cart recovery comes into play to try to reclaim a customer who has already left your eCommerce site.
eCommerce and Shopify merchants deploy Artificial intelligence to mitigate the digital shopping cart abandonment rates and drive more sales. AI and machine learning tools analyze a customer’s digital body language to determine when they are likely to depart the cart. They accomplish this by employing sophisticated analytical algorithms that quantify a large number of data points in real-time.
Here are three main AI tactics you should implement for effective digital shopping cart recovery and reduce the effects of shopping cart abandonment on your eCommerce site:
1. Abandoned Cart Email Marketing
If the visitor provided their email address during the checkout process and then left your site, you can reengage them through an abandonment email. AI-enabled automated systems can provide email marketing solutions by targeting users with reminder emails about the product they left without purchasing. An email offering a discount or a promo code is an effective way to persuade customers to return to your site and complete the transaction.
2. Abandoned Cart Retargeting
Advertisement retargeting is another powerful tool for better digital shopping cart recovery. Retargeting advertising relies on cookies that help eCommerce merchants to keep track of the pages visited by the user and records the actions they have made while on the site.
3. Personalized Offers on the Cart Page
Showing instant individualized offers on cart products is a powerful way to avoid Digital shopping cart abandonment. With AI you can offer attractive offers like an extra discount on cart products, free shipping, or loyalty points in real-time
The Bottom Line
eCommerce sites must monitor their shopping cart abandonment rates because a higher one is indicative of a poor customer experience or a broken sales funnel.
By tracking this crucial metric, you can successfully lower cart abandonment and drive in more sales, revenue, and profitability. AI technology brings in the right set of tools to put you forward in this game.
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