Real-Time Big Data Key to Cyber Monday Success
Study Shows 30% of Abandoned Online Carts Could Be Saved with Timely Incentives
Redwood City, CA - November 10, 2015 -
- 85% of shoppers have abandoned a shopping cart
- While almost 40% of shoppers indicate they always intend to purchase the items in their cart, only 10% always make it through to checkout
- 60% of shoppers indicate they’ll do more of their holiday shopping online this year
- In fact, 35% will do more than 75% of all their shopping online
- Shipping costs by far the biggest frustration with shopping online (60%) and the leading reason for shopping cart abandonment (32%)
- Consumers indicate that real-time incentives while they are still on the site are the best way to motivate them to close a cart they would have otherwise abandoned (60%)
Online shopping cart abandonment represents four trillion dollars in merchandise and significant losses in potential revenue for retailers. In fact, almost 85 percent of online shoppers have abandoned a shopping cart prior to checkout. Yet, according to the results of a new survey by Talend, a leader in data integration software, if retailers employ real-time big data technologies, they can recover 30 percent or more of that potential revenue.
According to eCommerce expert Ajeet Khurana, e-commerce is affected by the seasons and special days, so the next three months is a pivotal time period for e-commerce and retailers. For instance, Cyber Monday records one of the highest sales on many ecommerce websites. All the more reason, retailers need comprehensive, informed strategies to capture every possible dollar of online revenue during the holiday season.
Talend’s survey revealed that almost 60 percent of consumers anticipate completing more of their shopping online this season versus 2014. In fact, 35 percent indicate they’ll use the web to complete as much as 75 percent of their holiday shopping. While more shopping will be completed online this year, retailers still need to work hard to turn online browsers into buyers and reduce the number of shoppers who abandon carts filled with items that had initially intended to purchase.
“Every second matters when it comes to closing an online sale,” said Ashley Stirrup, chief marketing officer, Talend. “Until now, the ability to mine the deluge of customer behavioral data for answers that could be immediately acted upon was available only to the world’s most sophisticated companies – massive organizations with huge IT budgets and teams. Now, these technologies are far more accessible and are allowing more businesses to shape the customer experience for the better in real time.”
Free Delivery, Discounts Help Purchase Completion
The biggest reason for shopping cart abandonment, according to the survey, is shipping costs at 32 percent. Other reasons for not completing a sale include concerns over the total cost of goods at checkout (25%), frustration with the length of time it takes to complete the purchase (17%), and distractions that cause the session to time out (12%). In fact, the survey found these challenges create a large delta between consumers who say it is always their intention to buy the goods they put in their online cart (37%) and those that actually make it through the checkout process (10%).
When shoppers were asked what would motivate them to return to an abandoned cart and complete their purchase, the vast majority indicated they would be swayed by real-time promotions delivered while they were still on the site. Specifically, free delivery was noted by almost 35 percent of respondents as the top driver for completing their purchase, while a discount on the merchandise in their cart was indicated by another 26 percent as a motivating influence. Interestingly, the survey finds that retailers who send promotional offers the next day via email will be 50 percent less effective than those deploying real-time incentives.
Talend 6 Software Provides Real-Time Big Data Insights
In September, Talend released a new version of its data integration software with support for Apache Spark, a new technology enabling very fast data processing. The new software is helping companies, including online retailers, more rapidly connect and transform raw data into the insights needed to impact customers in real time.
For example, retailers like Talend customer OTTO Group, one of world’s largest online retailers, may be able to generate hundreds of millions of dollars in incremental revenue using analytics to offer customers real-time incentives.
To learn more about Talend 6 visit: https://www.talend.com/products/talend-6. More findings from the survey are available here: http://www.talend.com/blog and will help further build retailers’ understanding of consumers’ holiday shopping preferences and challenges.
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*Findings based on Talend online survey of over 750 consumers in the U.S.