HEADLINE: Now You Can Calculate How Much Cart Abandonment Is Costing You
Abandoned shopping carts are a nightmare for any business and could be costing you a lot in lost sales.
But can you estimate in monetary terms just how much it could be costing your business?
Thanks to a new app called Formissimo, it is possible to work out how much you’re losing and where exactly in your checkout process your potential buyers are dropping off.
WHAT IS FORMISSIMO
Formissimo is an app that offers you insights and analytics on forms on your website, and as a result, also on your checkout procedure. By using the information the software provides, you can start to get a clear idea of what parts of your checkout are costing you the most sales, and it can also help you work out a figure for lost revenue.
HOW DOES IT WORK
Formissimo is easy to set up and is compatible with Wordpress, Magento, PHP, ASP.net and others.
All it takes is one piece of code in the footer of your site - similar to the way Google Analytics is installed - and a live Formissimo account to get started.
When the code is installed, you just need to log in to your Formissimo account and start a new ‘experiment’ from the dashboard and choose a form to track. If you’re looking at your shopping cart abandonment rates then this is more than likely going to be your checkout form.
Once you have collected enough data, you can analyze it in detail by selecting the relevant experiment in your Formissimo account.
The data that Formissimo can provide includes which form fields your visitors are dropping off at, how long it is taking to complete each field and the form overall and what fields get left blank.
You can use this data to improve your checkout process, and Formissimo will even help you calculate the impact of the changes you make on how your form is filled out.
CALCULATING LOST REVENUE
With this data, it is then possible to put a monetary value on your lost sales.
If you discover that you have a 75% abandonment rate in Month 1 based on the number of visitors that started to fill out your checkout form, and you made $100,000 in sales then you can estimate that the sales you did make are 25% of your potential revenue.
Which means that your total potential revenue is:
$100,000 / 25% = $400,000
So if you had no cart abandonment, your sales could potentially be as high as $400,000.
From that information, you can also see that improving your abandonment rate by just 5%, from 75% to 70%, that would still be an extra $20,000 in sales.
COMPARED TO GOOGLE ANALYTICS
You can make some kind of estimate of cart abandonment rate with a basic understanding of Google Analytics by comparing the number of total visits to your checkout page with the number of sales transactions you make in any given time period, but what it doesn’t tell you is why your cart abandonment rate is at it’s current level or where your visitors are starting to drop off.
With Formissimo however, you can analyse down to each individual field on your checkout form so you can see what specific points are causing problems and have real actionable insights to help you tackle them.
SO YOU CAN ESTIMATE YOUR LOST REVENUE. NOW WHAT?
When you know how much revenue you’re missing out on and at what points your shopping cart is being abandoned, the first step is of course to tackle those points as a priority.
The checkout procedure is just one of several reasons a shopping cart may be abandoned and while optimizing your checkout will help you convert more sales, it won’t help you recover sales if the cart has been abandoned.
We have already seen that even a 5% improvement in cart abandonment can have a big impact. So imagine if you could recover even just an extra 5% to 10% of abandoned carts with a specialist cart recovery solution.
Logik can help you with this. Our software is designed and built specifically for recovering abandoned carts and could be the solution you need to drastically bring down lost sales on your website.
Sign up for a free demo today and see what Logik can do for you.
Click here to sign up for your free demo.