How To Combat Abandonment Rates With AR Technology

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Did you know that 77.3% of e-commerce shopping carts have been abandoned in 2017?

According to the research by Business Insider,
“Retailers Missed An Opportunity To Recover 4 Trillion Dollars In Merchandise Due To Abandoned Shopping Carts. It Means Up To 60% Can Be Recovered By Savvy Retailers.”
So, what’s the first step retailers are expected to take in order to reduce the abandonment rate? It’s quite simple: optimize the checkout flow first.

Research by Baymard indicates that $260 billion can be recovered by simply optimizing checkout options.

Let’s say if your website is generating $400K revenue in a month with an average of 0.92% visitors making a purchase and if we increase visitor’s ratio by 1.00%, you can roughly expect an extra $35,000 boost in your bank accounts per month.

So, additionally, that’s an extra $4, 20,000 (approx.) per annum.

Sound’s interesting, isn’t it?

Let’s take a closer look to the “$$$$”.

Optimizing Closest To Sales

Just think about the audience who visit your website. Some are random browsers some are window shoppers and some will just peep inside the website but will never scratch their debit/credit card. But what about those audiences who added some items to their cart, reached the checkout page but are yet to make any purchases? Well, they’re motivated to spend some dollars but something hinders them to complete the checkout process.

Just look at the flow above - 192 people have decided their journey towards checkout flow, out of which only 47 people have successfully checked out of the store. So, what happened? If the checkout process is so easy enough to do, what made them lose their motivation?

Let’s find out!

Why Do Shoppers Leave Without Paying?

Undoubtedly, shopping cart abandonment is a serious problem.

According to Statistic, below mentioned are some serious problems that let shoppers abandon their carts.

Note: This is an embedded link of Twitter tweet. Kindly add this image.

We Seriously Need To Talk About The Cart Abandonment

For many entrepreneurs, cart abandonment is literally witnessed as a missed revenue opportunity and failed conversion. For them, cart abandonment seems like a serious issue and likely a metric that they are already paying attention to.

Such high cart abandonment rates have many people looking for a quick solution or the way to recapture the lost value. The problem isn’t that people are quitting the checkout process, the problem is why? How can you develop such customer base that keeps coming back and forth? This is really an important question that you need to ask yourself before taking any actions.

Now, You Understand the Problem, So What Exactly Is the Solution?

The first and the foremost step to get into customer’s mind is to think about it from your own perspective. What caused you to close your laptop before you entered your credit card details? One of the major disadvantages of online shopping is, customers can’t touch, feel or try a product to see how it best-fits in their house. Thus, this lack of interactivity in decision-making process results in a larger number of empty carts.
With e-commerce technology developing and evolving at lightning speed all the time, AR technology proves to be an effective solution to implementing a touch-based element to e-shopping. But how?

How Can E-Commerce Reduce Abandonment Rates With AR Technology?

Apart from catching Pokemon and applying the face masking filters of Snapchat, AR holds an apparent value in eCommerce. Augmented reality is slowly bridging the gap by bringing on the table a tangible presence to online shopping with real-time product visualization. Leveraging an opportunity to see virtual products in the actual environment, integration of AR in eCommerce is quickly changing the way consumer’s shop by allowing them to see what they want and thus reduce abandonment rates.

One of the biggest hurdle faced by the customers is to decide whether a particular product is right for them or not. Implementing AR will offer a confidence to shoppers that may motivate their purchasing decisions. This will allow customers to view in-depth information including reviews, related products, and price along with looking at the actual physical product through their smartphone.

Turning the "Augmented" Into Reality.

It’s not that easy to simply use AR in an insignificant manner. Retailers can’t simply throw darts at the wall; they need to consider customer needs before taking any decision. Here are some considerations.

1. Create An Engaging Buyer Experience:

“61% of shoppers go for stores that offer augmented reality, over ones that don’t” – Retail Perceptions

Keeping shoppers engaged throughout the entire buyer’s journey is a retailer’s priority, however, it’s quite difficult. Though engaging user through AR by browsing the online store, interacting with products and testing additional features with AR is time-consuming still, it provides true value when it comes to making a sound purchasing decision.

For Instance:

By implementing ModiFace technology, Sephora app allows users to click a “selfie” & then apply multiple cosmetic products to their faces. So, instead of spending hours in-store, users can shrink narrow their buying choices and thus streamline the entire process.

2. Customize Selections:

“77% of online shoppers want to use AR to watch out product differences like change in color or style” – Retail Perceptions

Retailers such as Nordstrom have smartly distinguished itself from competitors by leveraging a personalized shopping experience, driven by a curator who knows individual shopper’s sizes, style and preferences. Integrating latest technology not only created a positive impact on its abandonment rates but also made it famous for its customer service.

An Eye over Top Retail Brands Enhancing E-Commerce Business at Next Level with Augmented Reality

IKEA is highly successful because of their ability to leverage AR technology and e-commerce for their consumers. In 2013, IKEA created an AR catalog to help customers identify how furniture pieces would actually fit and look in their own house. Customers just simply need to launch an app on their smartphone, click an image of their room with a camera and that’s it. Customers can then select multiple items from IKEA to identify how a finished piece of furniture would actually look in their home.

Make Your Business Close More Sales with AR Integration

For e-commerce marketers, closing sales don't involve having a conversation with customers via telephone rather it involves leveraging seamless shopping experience that lures them to make a positive purchasing decision. So, is your business closing more sales? We would love to hear it from you. Do let us know in the comments below.

AUTHOR_NAMEAbout the Author:
Bhavesh Surani is the Head of E-Commerce & Mobile Application in Brainvire Infotech Inc. Holding 15+ years of experience in IT sector, he helps various startups, business and enterprise to grow business with apt strategies and robust web and mobile solutions.
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