As this excellent Shopify article about basket optimization reveals, 70% of online shopping baskets are abandoned. When overall conversion hovers at around 3%, basket abandonment represents a significant challenge to ecommerce. Your buyers took the effort to load up the basket. They’re clearly motivated to make a purchase… So why do the majority of them end up walking away?
The mechanics of optimising your checkout to avoid basket abandonment are largely the same whether you’re selling to retail buyers, or business ones. Here are a couple reasons why B2B basket abandonment happens:
What causes B2B basket abandonment?
- Complicated checkout process: If the checkout process is lengthy and complicated, customers may abandon their baskets out of frustration.
- Technical issues: Technical problems, such as slow loading times, broken links, or payment processing errors, can also lead to basket abandonment.
- Shipping costs: High shipping costs can be a deterrent to customers, especially in B2B transactions where large quantities of products are being purchased.
- Price comparison: B2B customers often compare prices across multiple vendors. If they find a better deal elsewhere, they may abandon their baskets on your site.
Other things like lack of trust and inadequate product information can also lead to basket abandonment.
By the way, if you're using Magento as your e-commerce platform as choice, you should check out our ebook about skyrocketing your B2B traffic! In it, you'll find some killer tips that'll set you up for success!
So what’s the best way of avoiding B2B basket abandonment?
1. Keep It Simple: Keep the checkout process as simple and streamlined as possible. Avoid adding unnecessary steps or forms that could slow down the process and deter customers from completing their purchase. Use a clear and intuitive layout with large buttons and fields that are easy to read and use.
2. Minimise Distractions: During the checkout process, remove any distractions that could divert customers' attention away from completing their purchase. This can include pop-up ads, unrelated offers, or links to other pages on your site. Keep the focus on the checkout process itself.
3. Provide Multiple Payment Options: Offer a range of payment options to accommodate different customer preferences. This can include credit/debit cards, PayPal, Apple Pay, Google Pay, or newer payment methods like B2B BNPL. By using a B2B BNPL provider like Two, for example, you can cover the working capital requirements of offering net terms while offsetting the credit and fraud risks.
4. Be Transparent About Shipping Costs: Provide clear and upfront information about shipping costs and delivery timelines. Consider offering free shipping for larger orders or for certain types of products.
5. Offer Guest Checkout: Guest checkouts can offer a 45% increase in sales.
But this is a double-edged sword. You get increased conversion, but theoretically this comes at the expense of a deeper understanding of your customers - they’re anonymous, after all.
B2B is unique in that the usual drawbacks of guest checkouts are neutralised. You may not know precisely the identity of the individual making the purchase, but to claim VAT and create compliant invoices, B2B buyers are incentivized to share their company name.
Seeing as the company is the one ultimately making the purchase, that’s potentially all you need for analytical purposes. Two optimises B2B checkouts by making selecting your company a simple search dropdown:
6. Use Mobile Optimisation: Make sure that the checkout process is optimised for mobile devices, which are becoming increasingly popular for online purchases. Use responsive design to ensure that the checkout process works seamlessly on a range of screen sizes.
7. Provide Clear Feedback: Provide clear and timely feedback to customers at each stage of the checkout process. Use error messages or notifications to alert customers if there are any issues with their order, such as an invalid credit card number or out-of-stock item.
8. Send Reminder Emails: Send automated emails to buyers who have abandoned their basket to remind them of their pending purchase. Offer incentives, such as a discount or free shipping, to encourage them to complete their purchase.
9. Provide Live Chat Support: Offer live chat support to help buyers with any questions or concerns they may have during the checkout process. This can help to reduce basket abandonment rates by addressing buyer concerns in real-time.
10. Analyse and Optimise: Regularly analyse basket abandonment rates and identify areas where the checkout process can be optimised. Use data analytics tools to track user behaviour and identify any issues or bottlenecks in the checkout process.
How to measure the the results of your basket abandonment strategy
In order to gauge the effectiveness of your basket abandonment strategy and make necessary adjustments, it's important to measure its results. Here are a few ways to do so:
Calculate the abandonment rate: This is the percentage of users who leave your website without completing their purchase. Divide the number of abandoned carts by the total number of initiated checkouts and multiply by 100 to get a baseline for improvement over time.
Analyze customer feedback: By surveying customers who left their carts, you can identify specific pain points and make improvements accordingly.
Monitor conversion rates: Keep an eye on your conversion rates to see if your strategy is having a positive impact on completing purchases. Improvements in conversion rates may indicate that your strategy is working.
Test different strategies: A/B testing can help you compare the effectiveness of different strategies, such as testing different email sequences or incentives.
Track revenue recovery: The ultimate goal of implementing a basket abandonment strategy is to increase revenue. By tracking the revenue recovery from your strategy, you can determine its impact on your bottom line.
By using data to measure the results of your basket abandonment strategy, you can make informed decisions to improve your approach and increase conversions.
Two - The complete B2B payment suite
Offering BNPL for your business customers doesn’t need to be complicated. With Two’s B2B payment suite, you can increase conversion rates and average order value while eliminating admin and credit risk.
Whether you want to simplify your e-commerce checkout, offer an optimised trade account, or reach your offline customers - Two allows you to offer your business customers flexible, interest-free trade credit without the added risk or need for invoice factoring.
If you're looking to increase your B2B sales, cut admin, and offset credit risk, talk to one of our experts today