Businesses spend massive sums of money to drive consumers to their site only to have potential customers leave before ever making a purchase. The threat of cart abandonment is a continuous issue for e-commerce companies. There isn't a simple reason why cart abandonment happens, but the issues include a lack of trust and low buying intent.
The #1 issue for cart abandonment is lack of trust in the brand and products. In order for brands to improve abandonment, they must start by improving trust. Referrals marketing allows your customers to share a testimonial with their network. No matter what a brand says about itself, it will never be as powerful as what a trusted friend says.
Referrals ensure you are reaching the right audience for your products and services so there is higher buying intent. This is confirmed with 3-6x higher conversion rates.
Have an engagement strategy allows brands to target audiences with the most effective reward to drive up conversions.
Cart abandonment will always be a top of mind issue for e-commerce, but there is an effective strategy such as referral and engagement which can be used to decrease the likelihood of dropoff. Businesses are turning to Extole to improve cart abandonment rates.
Get the 2020 Referral Marketing
Best Practices Guide