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2 out of 3 Online Shoppers Abandon Their Shopping Carts without Paying

eccommerce online shopping cartAccording to data compiled by Baymard Institute, the average documented online shopping cart abandonment rate is 67.89%. That means more than two out of three people leave products in their online shopping carts before they complete their purchases, and that means companies are leaving a lot of money on the table.

Why do consumers leave online shopping carts filled with products? Studies over the past few years have found that unexpected costs, slow shipping, high-priced shipping, and poor return policies are cited most frequently by online shoppers around the world.

For example, a 2012 study by Forrester found that the number one reason consumers abandon online shopping carts (44%) is because shipping and handling costs are too high. Similarly, two separate studies by comScore conducted in 2013 and 2012 revealed the following:

  • Nearly 90% of online shoppers have placed items in their shopping carts and left the site without making a purchase.
  • Two out of five customers abandon their shopping carts because of slow delivery estimates.
  • Nearly half of online shoppers will not wait more than five days for packages to be delivered.
  • Online consumers are less likely to abandon shopping carts if shipping costs and delivery times are communicated early in the online shopping experience.
  • More than three quarters of online shoppers have added items to their shopping carts to qualify for free shipping.
  • More than 60% of online shoppers look at a retailer’s return policy before making a purchase.
  • 65% of consumers will shop more with a retailer if they offer a hassle-free return policy.

Looking at shopping cart abandonment from a different perspective, SeeWhy tracked online buyer behavior to learn how time-to-purchase and value-in-cart affect abandonment rates. SeeWhy found that 72% of ecommerce site visitors will buy within the first 12 hours, but the average time delay between a buyer’s first visit and purchase is 19 hours. The breakdown follows:

  • 30% purchase in less than 20 minutes
  • 50% purchase in 20 minutes to 1 hour
  • 60% purchase in 1 to 3 hours
  • 65% purchase in 3 to 12 hours
  • 72% purchase in 12 to 24 hours
  • 80% purchase in 1 to 3 days
  • 85% purchase in 3 to 7 days
  • 95% purchase in 1 to 2 weeks
  • 100% purchase in more than 2 weeks

SeeWhy also found that people who have made a purchase on a specific site in the past are far less likely to abandon their shopping carts on that site in the future than new customers are. This isn’t surprising but did you know that the tipping point for cart abandonment happens at $100? SeeWhy found the following abandonment rates based on the value of items in the shopping cart:

  • $0 to $100 cart: 78% abandonment
    • $1 to $25 cart: 85% abandonment
    • $26 to $50 cart: 75% abandonment
    • $51 to $75 cart: 63% abandonment
    • $76 to $100 cart: 59% abandonment
  • $101 to $250 cart: 52% abandonment
    • $100 to $150 cart: 78% abandonment
    • $151 to $200 cart: 42% abandonment
  • $250 to $300 cart: 70% abandonment
  • $300 to $350 cart: 70% abandonment
  • $350 to $400 cart: 73% abandonment
  • $400+ cart: 85% abandonment

In recent years, studies have also shown that retargeting through advertising and remarketing through email are both very effective in bringing consumers back to complete transactions they’ve abandoned online. Deliver the user experience (i.e., product images, easy site navigation, no site registration required, easy price comparisons, reviews, and secure transactions) and the buying experience (i.e., clear, affordable, and fast shipping as well as easy return policies) that consumers want, and you should see more ecommerce transactions completed.

Image: Svilen Milev

Intel Finally Rebrands McAfee Security

mcafee securityThis week, Intel CEO Brian Krzanich informed audiences at the 2014 Consumer Electronics Show (CES) in Las Vegas, Nevada that his company would finally drop the McAfee brand name. Over the course of 2014, McAfee Security will become Intel Security.

Abandoning the McAfee name actually came a lot more slowly than you might think. Intel acquired McAfee in 2010 for $7.7 billion and the McAfee Security name has been around for more than 20 years (McAfee founded his company in 1987 but left in 1994). In 2010, it could still be assumed that the McAfee brand had value.

Fast forward two years to 2012 and John McAfee was in the news after fleeing Belize under suspicion of murder. Later that year, he released a controversial video telling people to stop using the McAfee Security products. Despite the fact that John McAfee hadn’t worked for the company in nearly 20 years, the public perception of McAfee the man negatively affected the perception of McAfee the brand. In the court of public opinion, the two had not been completely separated over time.

Finally, Intel is rebranding McAfee Security. While the complete rebranding is expected to take the next twelve months with Krzanich promising more details in the coming months, it was revealed that the McAfee shield logo will remain and a new pricing structure is coming. The product will be marketed through a freemium model and certain components will be offered for free on mobile devices. The company will decide which components will be offered for free within the next three months.

The desktop security product will not change (except for the brand name) and mobile malware protection will be offered for free. According to Seth Rosenblatt of CNET, this new strategy will support Intel’s goals to bring its security product to all mobile devices.

Interestingly, John McAfee publicly responded to the rebranding announcement by telling the BBC that he was, “everlastingly grateful to Intel,” for freeing him from the association with the McAfee Security brand explaining that his, “elation at Intel’s decision is beyond words.” From a brand marketing perspective, it’s Intel that should be celebrating the rebranding that has been needed for a long time—desperately in the past couple of years.

What do you think of the rebranding of McAfee Security to Intel Security? I would have liked the shield logo to be replaced, too. If it’s going to take 12 months to fully implement the brand name change, it would also be the time to start with a clean slate with a top-down rebranding and an opportunity to redefine consumer perceptions.

Image: Madhusudan M.

3 Reasons Amazon Ruled Holiday Retail in 2013

amazon boxAmazon announced that one million people signed up for it’s $79 annual Prime free shipping membership program during the third week of December 2013. In fact, Amazon Prime membership sales set a new record during that time period, but that’s just a small part of the story.

Bloomberg Businessweek reports that brick-and-mortar retail traffic dropped by 22% during the third week of December—the same time that Amazon broke records in Prime membership signups. Amazon also broke holiday retail records in mobile sales and Cyber Monday sales. Specifically, 50% of Amazon customers purchased items using their mobile devices this holiday season, and on Cyber Monday, 36.8 million items were purchased on Amazon setting a new record of 426 items sold per second according to Mobile Commerce Daily.

There are three key reasons why Amazon had such a successful holiday retail season in 2013, and none of them were based on luck. In fact, Amazon’s 2013 success comes from years of strategic planning.

1. A Seamless Mobile Experience

In 2013, shopping through the Amazon mobile app was something that consumers felt safe doing. That’s not something other retailers can say about their consumers. The reason Amazon succeeds in this area is because consumers can smoothly segue to the Amazon mobile app rather than feeling like they’re taking a sudden leap from the Amazon website (which might not be by choice) to a completely different mobile experience. Instead, the Amazon mobile app looks and feels similar to the Amazon website. Consumers’ perceptions of shopping through the Amazon mobile app or mobile website are very different than they are for other retailers because the similar user experience mitigates their concerns about mobile shopping security.

2. Convenience and Ease of Purchase

Since the Amazon mobile shopping experience is similar to the online Amazon shopping experience that consumers are used to, it’s extremely easy for them to make purchases anytime and anywhere with their mobile devices. There is no learning curve. All of their Amazon shopping cart information, wish lists, shipping addresses, profile data, and account information is at their fingertips using their mobile devices or their computers. With the handy one-click ordering feature, Amazon mobile app users can complete a purchase in seconds just like they would on the Amazon website.

3. Extras that Actually Add Value and Boost Loyalty

Amazon’s mobile app isn’t filled with clutter and extras that are useless to consumers. Instead, it provides all of the information Amazon customers expect such as search functionality, price comparisons, and reviews as well as extra mobile features like bar code scanning, product availability checking, and more.

In addition, Amazon has worked to extend its brand across mobile experiences to further increase brand loyalty. Not only does Amazon Prime boost customer loyalty for retail purchases, but products like the Amazon Appstore, Amazon Audible, Amazon Instant Video, Amazon Kindle, and Amazon ebook borrowing (for Prime customers) enable the company to surround consumers with a variety of ways to experience the Amazon brand that all lead back to Amazon.com or the Amazon mobile app in some way.

Amazon’s efforts in recent years have had a clear strategic purpose, and today, the brand is far stronger because of those efforts. One million new Amazon Prime customers at $79 each in one week says it all. Now, Amazon has one million more people to welcome into the Amazon family who can try the many Amazon brand experiences (and tell their friends about those experiences). It’s a great brand setup for 2014 and beyond.

Image: Mike Seyfang

5 Reasons You Need a Visual Brand

visual brand cameraThe world is visual. People are visual, and today, the internet is visual. As more websites shift to an image-first design strategy, brands are discovering that they need to be visual, too.

Of course, words are essential, too. Words combined with images have an even more powerful effect than either words or images can have on their own. Words add context to images and vice versa.

Most brand marketers understand the importance of brand communications via words, but they don’t give brand visuals the importance that they deserve in the marketing plan.

Following are five reasons you need to develop a visual brand to stay competitive.

1. Visual brands stand out and get noticed.

Images and colors stand out and get noticed. When people visit web pages, the images are the first thing eyes are attracted to. What visuals do you use to represent your brand and make sure it gets noticed? You need a visual brand to stand out not just from text but also from all of the other imagery that consumers are bombarded with each day.

2. Visual brands are shareable.

Research shows that people like to share images, particularly via social media. Sharing is a critical part of word-of-mouth marketing for brands, so get visual and get shared!

3. Visual brands evoke emotions.

If a picture paints a thousand words as the saying goes, then a brand that isn’t visual is missing huge opportunities to communicate with consumers. Images can be universal and are capable of evoking emotions without any words at all. Since the most powerful brands are typically well-connected to consumers’ emotions, it makes sense that a visual brand has a better chance of success than a non-visual brand.

4. Visual brands are influential.

Since images can evoke emotions, then it shouldn’t be surprising to learn that images can also influence people’s behaviors. The same holds true for visual brands. Let visuals do the talking for your brand and you’ll see their influence as people react to them.

5. Visual brands are memorable.

Images are easier for most people to remember than text. To build awareness and recall of your brand, create relevant and effective brand visuals.

Image: Kristian Rasmussen

The Rise of Social Sponsorships – What Brand Marketers Need to Know

social media influencerIn its 2013 State of Sponsored Social report, IZEA reveals that social sponsorship is on the rise and cutting into display advertising budgets for many brand marketers. This finding comes from a research analysis of over 10,000 brand marketers, social media consultants, and key social influencers’ opinions and experiences with social sponsorships and display advertising.

Overall, 61% of brand marketers invested in social sponsorships in 2013 by compensating social media influencers or publishers in exchange for a mention, promotion, or review through the influencer’s social media content, conversations, and channels. That is a 5% increase over 2012 social sponsorship investments. Today, 60% of companies have a stand-alone social media budget.

The growth in social sponsorships isn’t surprising given that 30% of marketers who responded to the IZEA survey indicated that they believe display advertising is dead or dying. This belief is corroborated by influencers. In total, 55.7% of influencers indicated that they make more money from social sponsorships today than from display advertising.

The most commonly used forms of social sponsorship used by brand marketers in 2013 were Sponsored Tweets (52%) and sponsored blog posts (51.6%) followed by sponsored videos (33%) and sponsored photos (33.0%). For the first time, sponsored share/pins on Pinterest were included in the annual study with 29% of brand marketers reporting that they invested in Pinterest social sponsorships in 2013.

Overall, brand marketers believe that the most important measures of social sponsorship success are the quality of the content (41.9%), number of shares (36.3%), and click through rate (35.2%). Interestingly, quality is also the most important factor for influencers when they consider an offer for a social media sponsorship. Quality of the advertiser ranked as the most important factor followed by value of the compensation and form of compensation. In 2013, the majority of influencers (74%) prefer to receive cash payment from brand marketers for social sponsorships.

Despite all of this positive growth for social sponsorships, more than one in four brand marketers (26.7%) have no understanding of the Federal Trade Commission (FTC) guidelines related to disclosing material connections. More than one in three brand marketers (37%) admit that they’ve heard of the FTC guidelines but that’s all, and only 10.6% have read the guidelines. Surprisingly, only 25.5% of brand marketers have read and understand the FTC guidelines. Influencers also have little knowledge of the U.S. guidelines, which can easily be found in the Code of Federal Regulations, Title 16, Part 255, Section 255.5. Only 29.5% of influencers have read and understand the FTC guidelines while 37.9% have no understanding of them at all.

Image: Ilker

Most Popular Web Searches of the Year – Google Zeitgeist 2013

search engineThe 2013 Google Zeitgeist, which ranks the most popular web searches of the year in a variety of categories, has been released, and there are a number of brand-related lists and charts available to give you an idea of what brands were hot in search during 2013.

Most Searched for Brands of 2013

The five most searched for apparel brands and retailers in the United States in 2013 were Kohl’s, JCPenney, Nordstrom, Forever 21, and Victoria’s Secret. It’s important to point out that not all searches are conducted for the reasons brands would want. The ongoing problems at JCPenney during 2013 put the brand in the number two position on the Google Zeitgeist list of the most searched for retail brands this year.

Looking at high fashion brands, Versace, Michael Kors, Diesel Black Gold, Gucci, and Kate Spade were the top five most searched for brands. The top five most searched for jewelry brands in 2013 were Gucci, Kendra Scott, Sucre, Jennifer Meyer, and Jennifer Fisher. For shoe brands, the top five most searched for in 2013 were TOMS, Aldo, Nike, Jessica Simpson, and Steve Madden.

Most Searched for Branded Products of 2013

From a branded product perspective, the top five most searched for beers across in the United States were Blue Moon, Bud Light, Bud Light Platinum, Kingfisher, and Stella Artois. When looking for new cars, the five most searched for cars were the 2014 Corvette Stingray, 2014 Chevrolet Camaro, 2013 Honda Civic, 2014 Honda Accord, and 2013 Jeep Wrangler. However, for hybrid and electric cars, people searched most often for the Chevy Volt, the Fisker Karma, the Toyota Prius C, the Toyota Prius V, and the Toyota Camry Hybrid.

Consumers researching phones most often searched for iPhone 5s, Samsung Galaxy S4, iPhone 5c, HTC One, and Nexus 5. The most searched for tech gadgets were the Playstation 4, Samsung Galaxy S4, iPhone 5s, iPhone 5c, and iPad Air. The top searched for video games were Grand Theft Auto V, Cookie Clicker, Atari Breakout, Candy Crush, and Bioshock Infinite. When consumers looked for mobile apps, they most often searched for Bitstrips, Vine, Candy Crush, MeetMe, and Snapchat.

Most Searched for Companies of 2013

Companies were also ranked in several categories in the 2013 Google Zeitgeist. The most searched for car companies in the United States during 2013 were Tesla, Bugati, MINI, Ford, and Jeep. The top searched for food companies were Pizza Hut, Domino’s, Starbucks, McDonalds, and Jimmy Johns. Finally, the most searched for Fortune 500 companies in 2013 were Google, Facebook, Apple, Yahoo!, and Target.

You can see more lists, including lists for a number of countries, and compare these rankings with rankings from previous years on the Google Zeitgeist website (just follow the link at the beginning of this article). Google also created an annual zeitgeist video which gives a great overview of the year in search. You can watch it below.

Image: Carl Dwyer