What is Drop Off Rate? 11 Strategies to Reduce It In B2B

What is Drop off rate?

Drop off rate measures the amount of potential customers that don’t complete a purchase on your website. Using drop-off rate, you can understand how to optimise your website and avoid losing potential customers and sales in the buying process. So, how do you do that?

What is the difference between bounce rate and drop-off rate?

Drop-off rate and bounce rate are both important metrics in website analytics, but they measure different aspects of user behaviour. Bounce rate refers to the percentage of visitors who land on a page of your website and then leave without clicking on anything or navigating to any other page on your site.

On the other hand, drop-off rate is often used in the context of multi-step processes, such as e-commerce checkouts or sign-up flows. It measures the rate at which visitors abandon the process before completing it. For instance, in a checkout process, the drop-off rate would indicate the percentage of users who start the process but do not complete the purchase.

In B2B e-commerce, understanding where and why potential customers drop off during their buying journey is crucial for optimising conversion rates. By tracking the drop-off rate at each stage of the conversion funnel, you can identify the areas of your funnel that need improvement and optimise the user experience. 

In this article you’ll find key information about what drop off rate is, how to measure and monitor it and a benchmark to aim for. We’ll also be covering common causes and how to identify them, as well as 11 valuable tips for reducing drop off rate.

Table of contents

  1. What is Drop off rate?
  2. What is a conversion funnel?
  3. Drop off rates in B2B
  4. How do you calculate, measure and monitor your drop off rate?
  5. What is considered a good drop off rate?
  6. The common causes of drop-offs
  7. 11 tips to reduce drop off rate

What is a conversion funnel?

The first stage of understanding drop off rate is taking a closer look at your conversion funnel. Think of the conversion funnel as a clear path users take from the first time they visit your site to when they make a purchase.

When we talk about understanding drop-off rate, it's really about knowing where on this pathway people decide to leave before reaching the end goal. 

With this in mind, start by taking a look at what point in the conversion funnel your potential customers leave your site using your analytics tool of choice. If for example, you aren’t achieving many purchases overall, it could be a sign that your top funnel content or strategies aren’t answering the questions they have. If they’re unsure about something, they’re unlikely to proceed to a purchase.

If, on the other hand, you have a number of potential customers that reach the purchase stage but still don’t complete their order, it could suggest your checkout page needs optimising. Ensuring a seamless purchasing user experience is crucial when nurturing the desired outcome of converting potential leads into satisfied customers.

When selling B2B, it's important to understand the buyers mindset. This is an area of rapid change from both a buyer behaviour and technological perspective. For example, buyer's are beginning to expect a digital checkout solution, regardless of payment type. Make sure you understand the buyer journey from start to finish.

Drop off rates in B2B

Across five B2B industries, the average conversion rate is at around 1.9%. The actual conversion rates between industries varies, however. For example, you can see in the table below that B2B Services clearly has the highest conversion rate at 2.7%. Other industries with different business models like B2B SaaS, for example, have a much lower conversion rate of 1.1%. B2B Construction sits roughly in the middle.

FYI - According to the 2023 E-commerce Conversion Report by Digital Commerce 360, the top 1000 retailers achieved a higher conversion rate than the top 2000. This suggests higher performing companies are investing more in conversion-driving tactics and technologies.

Of course, B2B conversion rates are typically lower than their B2C counterparts. There are many reasons for this such as a shorter sales cycle and lower average prices. 

B2B products and services typically have a higher price point and involve a far more established relationship between seller and buyer.

B2B consumers usually want to know the return on investment (ROI) and lifetime value (LTV) before deciding to limit their risk. Buyers behave differently when making purchasing decisions that involve high ticket items. As a result, the customer journey often becomes long and complicated!

But what do B2B and B2C Buyers have in common? Ultimately, buyers want a convenient and positive experience from a business that aligns with their values and proves they’re trustworthy. This highlights how important it is for B2B companies to focus on trust-building and relationship development with their website visitors. Once you pinpoint those stumbling blocks on your site, you can optimise your website, making the buying experience smoother and increase those conversions.

Later in the article, we’ll be discussing how you can identify the reasons for drop off rate and ways to fix it, so be sure to keep reading!

How do you calculate, measure and monitor your drop off rate?

Calculation

Drop off rate is calculated by dividing the number of people who abandon their purchase by the total number of people who initiated it. For example, if 300 people visit your website but only 30 people make a purchase, the drop off rate would be 90%. Conversely, your conversion rate would be 10%.

Measure and monitor

There are various ways to measure user drop-off rates. One powerful approach is leveraging analytics tools like Google Analytics, Amplitude, Mixpanel or Zuko Analytics. Each tool has its pros and cons so you’ll need to do some experimenting, but once implemented, these will help you understand more about your drop off rate and at which point in the conversion funnel it happens.

Google Analytics

Google Analytics provides a comprehensive view of your customers' behaviour and engagement with your product and website. With this valuable data, you can make informed decisions to guide users to the right pages or buttons, ultimately enhancing conversion and retention statistics.

Amplitude

Amplitude offers a unique perspective by allowing you to analyse various user cohorts, grouping users based on behaviour and usage patterns. This enables tailored user onboarding experiences for each group, a strategy that focuses on individualised user satisfaction without compromising overall efficiency.

Mixpanel

For a deeper understanding of user behaviour, Mixpanel excels in providing insights into how users interact with your website and product. Its advanced segmentation and flexible funnels and retention reports empower you to comprehend the nuances of user conversion or drop-off at every step of their journey.

Zuko Analytics

Zooming in on the details of user drop-off, Zuko Analytics specialises in online form and checkout analytics. It serves as an optimization tool to uncover when, where, and why visitors abandon your forms. Zuko provides granular data on each form field, allowing you to identify UX issues without the need for extensive developer involvement.

Understanding and mitigating user drop-off rates are critical for sustaining a successful online presence. Leveraging tools like Google Analytics, Amplitude, Mixpanel, and Zuko Analytics and many more, provide a multifaceted approach, allowing you to make data-driven decisions and create seamless user experiences that foster conversion and retention, reducing the drop-off rate.

What is considered a good drop off rate?

Determining a good drop-off rate can vary depending on the context and industry. Of course, a lower drop-off rate is preferred, as it indicates that a higher percentage of users are progressing through the buyer journey without abandoning it.

According to Uplead, a good conversion rate in B2B is between 2-5%, with the ideal conversion rate of some industries being as high as 10%.

It's essential to align expectations with the specific objectives and continuously monitor and adjust strategies to improve business-client relationships and minimise drop-offs. 

The common causes of drop-offs

So what are the actual causes of drop off rate in B2B? Through our research, we’ve collected 3 core reasons people abandon their basket at the checkout:

Website design issues

  • Poor Call to Action (CTAs) : A poorly crafted CTA can confuse visitors, leading to a lack of engagement. Clear and compelling CTAs are essential for directing users to desired actions.
  • Confusing navigational structure: An intuitive navigational structure is the backbone of user-friendly websites. If visitors struggle to find what they're looking for, frustration sets in. Simplifying navigation enhances the overall user experience.
  • Improperly placed content: Content placement plays an important role in user engagement. Misplaced content can disrupt the information flow and cause users to lose interest. Strategically positioning content ensures that visitors can easily consume and comprehend the information presented.
  • Inefficient contact forms: Contact forms serve as a vital communication channel. Complex or inefficient forms can discourage users from reaching out. Streamlining contact forms makes it easier for visitors to connect with the website or support teams.
  • Slow page load speed: Online users in 2023 expect instant access to information. Slow page load speeds frustrate visitors making them more likely to leave. Optimising website performance is crucial for retaining user interest.

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High shipping costs

Unexpected costs, particularly high shipping fees, can be a significant turn-off for online shoppers. Transparent pricing and clear communication about shipping costs are essential for building trust and preventing basket abandonment.

Complex Checkout Process

A confusing checkout process often leads to abandoned shopping carts. Simplifying the checkout journey, minimising steps, and providing multiple payment options contribute to a smoother and more satisfying transaction process.

Unavailable Contact Information

Trust is a key factor in online interactions. The absence of easy available contact information raises concerns about the legitimacy of your company. Providing clear and accessible contact details fosters trust and reassures users about the credibility of the website.

Although your website may draw substantial traffic, grasping the common reasons and locations where users abandon the conversion process is vital for identifying and addressing issues that may impede your product, service, or website. The only question remaining is: How can you reduce the drop-off rate?

11 tips to reduce drop off rate

Now that we’ve covered the main causes for drop off rate, it’s time to understand how you can reduce it!

  1. Improve website design
  2. Analyse your conversion funnel
  3. Utilise session recordings
  4. Work with a B2B BNPL (Buy Now, Pay Later) provider
  5. Utilise heatmaps
  6. On-page feedback surveys
  7. Use form analytics
  8. Reduce the number of steps to checkout
  9. A/B test your web experience
  10. Include engaging copy and graphics
  11. Remind your customers

1. Improve Website Design

A visually appealing and user-friendly website design is crucial for reducing drop-off rates. A clean layout, intuitive navigation, and clear calls-to-action contribute to a positive user experience, encouraging visitors to stay and explore.

2. Analyse your conversion funnel

Analysing and optimising the different stages of your conversion funnel can help identify bottlenecks and areas for improvement. Streamlining the funnel ensures a smoother user journey from landing on the site to completing a desired action. This process helps enhance the overall efficiency of the conversion process and ensures a positive user experience, reducing the likelihood of drop-offs.

3. Utilise session recordings

Session recordings is the process of capturing and reviewing the real-time interactions and behaviour of users on your website. This involves recording the entire session of a user, including their mouse movements, clicks, scrolls, and other interactions with the site. 

Examining session recordings provides valuable insights into user behaviour. By observing how visitors interact with your site in real-time, can help you identify pain points, understand user flows, and make informed adjustments to enhance the overall user experience. 

4. Work with a B2B BNPL (Buy Now, Pay Later) provider

For businesses engaged in B2B transactions, implementing Buy Now, Pay Later (BNPL) options can be a strategic move to improve cash flow and facilitate smoother transactions. BNPL solutions allow businesses to offer flexible payment terms, making it more convenient for their B2B customers.

B2B Buy Now Pay Later (BNPL) is a payment method that utilises newer technology like embedded finance and automatic payment reconciliation that help to solve the pain points of traditional trade credit. Buyers can defer payment or divide purchase costs over a certain period while the seller gets paid straight away.

5. Utilise heatmaps

Heatmaps visually represent user interactions, highlighting which areas of a webpage receive the most attention. They’re used to illustrate the intensity or frequency of user interactions within the webpage.. The warmer colours (such as red and orange) represent areas that receive more attention or interactions, while cooler colours (like blue and green) indicate less activity. 

Utilising heatmaps helps prioritise content placement and design elements, ensuring that important information is strategically positioned to capture user interest. Heatmaps are a powerful tool for understanding user behaviour, optimising website design, and enhancing the overall user experience by focusing on data-driven insights.

6. On-page feedback surveys

On-page feedback surveys are a method of collecting direct input from website visitors while they are actively engaging with the content. These surveys typically appear on the web page itself and ask users for their opinions, preferences, or feedback regarding their experience. 

Gathering direct feedback from users through on-page surveys allows you to understand their needs and preferences. The data gathered can guide improvements by addressing specific concerns and tailoring the user experience accordingly, helping to make targeted adjustments that enhance user satisfaction and reduce drop-off rates.

7. Form Analytics

Form analytics involves the systematic analysis of user interactions with online forms on your website. Online forms are crucial elements for user engagement, lead generation, and conversion, making it essential to understand how users interact with them.

Optimising forms is essential for reducing friction in the user journey. Form analytics provide insights into user interactions with online forms, helping identify and eliminate obstacles that may deter visitors from completing important actions.

Improving form usability based on analytics data can significantly enhance the user experience, making it more likely for users to complete desired actions without frustration.

8. Reduce the number of steps to checkout

Simplifying the user journey by reducing the number of steps required to complete an action can significantly decrease drop-off rates. Minimising unnecessary clicks and streamlining processes improves user satisfaction and encourages conversion. Additionally reducing friction, making it more convenient for users to navigate and complete actions, ultimately leading to higher conversion rates.

9. A/B test your web experience

A/B testing, also known as split testing, is a method used in web-development to compare two versions (A and B) of a webpage to determine which one performs better in terms of user engagement and conversion. This data-driven approach allows for evidence-based decisions to enhance the overall user experience.

A/B testing helps identify the most effective design elements and content, ensuring continuous improvement based on user preferences and behaviour. 

10. Include engaging copy and graphics

Compelling and relevant content, packed with visually appealing graphics, maintains user interest. Crafting engaging copy and visuals not only communicates your message effectively but also captivates the audience, reducing the likelihood of website exits.

Engaging content and visuals create a positive user experience, encouraging visitors to stay longer on the website and increasing the likelihood of conversion.

11. Remind your customers

Customer reminders involve proactive communication strategies designed to re-engage users who may have abandoned a certain action or interaction. Gentle reminders, such as abandoned cart emails or notifications about incomplete actions, attract users to return to the drop-off point and encourage them to complete their journey or purchase. A timely reminder ensures that the user journey is not interrupted due to distractions or hesitations.

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Whether you want to supercharge your B2B e-commerce checkout for guest purchases, optimise your trade account with frictionless onboarding, or offer B2B BNPL on all sales channels - Two is here to help.

Two’s payment technology enables businesses across all industries to offer purchasing on invoice, providing a frictionless checkout experience with instantly approved credit. Our revolutionary B2B solutions simplify the payment journey so businesses can access working capital and increase B2B sales while reducing time consuming operational work.