Enterprise AI

The top 5 reasons your shoppers don’t click buy (and what you can do about it)

Conversion rates are the bane of many marketers’ existence. Trying to get prospects and customers to take a particular action, whether that’s opening an email, watching a video, or making a purchase, is no small feat. A quick look at recent stats for conversion rates bears this out. Globally, they tend to hover between just 2 and 3 percent. While performance varies marginally based on factors like geography, device, platform, and industry, the results all tend to be pretty lacklustre.

Clearly, when it comes to conversion rates, there’s plenty of room for improvement. That’s particularly true in e-commerce, where according to one study, shoppers drop off and abandon their online carts nearly 77 percent of the time. Many more drop off before ever even reaching that point. Of course, regardless of what you’re selling, before you start thinking about how to increase conversion rates, it’s important to understand why people aren’t buying in the first place.

Why your shoppers get cold feet

There are plenty of reasons why potential customers might not be buying your products. It could be a question of price or brand reputation, or just that you’ve wracked-up some unfavorable reviews online. Truth be told, the top reasons why people back off and ultimately never convert into paying customers are typically tied to the things you’re not doing and how the overall shopping experience makes would-be customers feel. For example:

  1. You’re not giving shoppers what they want. To be successful at e-commerce, you have to listen to consumers and take the time to understand what it is that they actually want. You can’t create a product in a black box and assume that it’s going to sell. Rather, you have to take time to actively find out what their needs and desires are, and what problems they’re trying to solve. It’s only when you’re giving consumers something they actually want that you’ll get them to buy.

  2. You haven’t earned shoppers’ trust. There are millions of products out there to choose from. For shoppers to select yours, they have to trust that they’ll be happy with their purchase and feel like it was worth the money they spent. While positive customer reviews can certainly help here, so too can peace of mind. Being able to return purchases at no cost and receive a full refund, as Amazon famously allows customers to do, can go a long way toward helping shoppers trust that purchasing from you will be a positive experience. You can also build trust by creating experiences that are tailored to your audience based on insights you’ve gleaned about their behavior. AI and big data has made this possible, assuming your data collection and usage practices are irreproachable (as they should be).

  3. You’re not soliciting and incorporating shoppers’ feedback. Have you ever taken the time to ask shoppers who were about to buy your product, but ultimately didn’t, what made them change their mind? Was it a matter of price? Was there some feature that they didn’t like or that they felt was missing? If you’re not taking potential customers feedback on board and trying to create the product they want, rather than the one you think they do, then you shouldn’t be surprised when they don’t actually pull the trigger.

  4. They lack a sense of urgency. Just because you’re anxious to sell your products doesn’t mean your buyers share the same sense of urgency. All the more so if you’re selling something they don’t actually need. Buyers will often spend time researching a product only to postpone making a purchasing decision because they’re in no real rush to acquire what you’re selling.

  5. They’re stressed out. Making purchasing decisions can be a stressful. Chances are that you’re not the only one selling your product, so buyers have to weigh the benefits of your product versus your competitors’ offerings. They then have to do a real-time cost benefit analysis to determine if the product is actually worth the price. Finally, they’ve got to deal with the stress of trying to sort out whether or not all of the claims being made about the product are actually true. The combination of these and other stressors can lead buyers to the conclusion that it’s just easier to abandon their purchases than move forward.

It’s because of reasons like these that would-be buyers wind up dropping off at various points in the buyer’s journey. Drop-offs can occur from the moment a person begins searching for a product through to when she adds your product to her virtual cart and ultimately makes a purchase.

Finding your Moment of Impact 

Chances are, you’re wondering how to get around this problem. Thankfully, machine learning offers an effective solution. By applying AI to problematic touch points in your customer’s journey, you can transform them into moments of impact and drive conversions across your channels.

Imagine, for example, that you have a buyer with no sense of urgency, but who is also price sensitive. With AI, you can deliver an experience, say a small discount or incentive, to help them convert. Most importantly, you can make sure that only those who have the greatest propensity to convert are opted in to receiving these experiences. That way, you’re being helpful instead of annoying. This approach creates opportunities for you to make deals you otherwise wouldn’t, and in a way that improves your relationship with customers.

For anyone in e-commerce, AI offers a way to strategically enable the customer journey when and where it makes sense, thus maximizing conversions and ultimately revenues. Want to learn more

Want to find out how to leverage AI to create and deliver relevant experiences to your customer without creeping them out? Check out the deck below, or feel free to get in touch.

 

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