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BizReport : Ecommerce archives : August 03, 2011

Reports: Coupon use up but so are cart abandon rates

For the first half of 2011 more than 167 billion coupons have been distributed in the US, but although more coupons are being used - both online and offline - many consumers are still not making it all the way through the check-out process. With the back to school and holiday shopping seasons nearly here, what can etailers do to increase conversions?

by Kristina Knight

Since 2008, the CPG coupon redemption rate has increased steadily year to year; 2009 saw an 18% increase, 2010 nearly 8% and so far in 2011 nearly 3% increase (US). Much of that increase is credited to the wobbly economy but another factor is that savvy consumers look online for better coupon deals. But even with the increase in coupon use it seems most consumers don't make it through the checkout process on the first - and sometimes second - tries.

According to data from NCH Resource Center grocery coupons have actually seen a 3% decrease but mass merchant and drug stores have seen increases between 10% and 25%. So, coupons are out there, but consumers still aren't converting. Why?

Research from SeeWhy shows that for the first half of 2011 the shopping cart abandon rates reached 75%, an increase from the 71% rate in 2010. Charles Nicholls, SeeWhy Founder and CSO, believes those increases are due to the increasing number of mobile consumers, who abandon at higher rates, and the uncertain economy in the US.

How can etailers entice users to stick with their shopping carts all the way through the checkout process? Lisa Barone with Outspoken Media suggests not requiring an account for consumers to buy, including 'buy now' or one-click buttons and to let them know where they are in the checkout process - step 1 of 3, step 3 of 5, etc.

Tags: cart abandon rates, ecommerce, ecommerce trends, Lisa Barone, NCH Resource Center, SeeWhy, shopping cart abandonment

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