Online cart abandonment costs UK retailers £1bn a year, according to cloud.IQ.
Brits spend more on the web than any other nation – a whopping £44bn in 2013 – but seven out of 10 shoppers who visit a site abandon their purchase before the checkout, costing retailers in lost sales, cloud.IQ reports.
James Critchley, founder and CEO of cloud.IQ, said: “With so much competition for consumers online, Britain’s retailers need to do more to convert web window shoppers into paying customers.”
cloud.IQ, which launched just two years ago, works with customers including Dr Martens, Lyle & Scott and Wowcher and now employs 40 people at its offices in London’s Tech City.
Research has shown 88% of consumers are open to follow up by email after they abandon a shopping cart, but most online retailers fail to stay in touch and instead remain focused on simply acquiring new visitors. Research by Forrester shows that for every £100 organisations spend getting customers to a website, only £1 goes into converting them.
Critchley said: “Retailers have been put off investing in this area due to the high cost of conversion marketing tools. But recovering customers doesn’t have to be rocket science – our tools are simple and affordable meaning we’re levelling the e-commerce playing field. In a world dominated by a handful of internet giants, we’re developing tools that every size of organisation can afford.”