Analytics Recipe Cookbook - Summaries

Sales Funnel Analysis (E-commerce)

  • 1.  Sales Funnel Analysis (E-commerce)

    Bronze MVP
    Posted 03-25-2019 01:46 PM
    Originating Authors
    Lovely Singh, Neha Paul, Nabler

    Introduction:

    Do you know what percentage of your shoppers abandon their cart? if not, you are missing out on a huge amount of revenue. In the Web Analytics world, this is known as potential revenue. If you are looking for a number, it's almost around 75%. Huge right?

    Well, don't you worry since we have you covered!

    Now, think about this, do we always buy everything we see? The answer is more often than not, which means we tend to skim through various products yet don't end up purchasing them.

    Cart Abandonment works the same way. Visitors add products to their cart but have various reasons behind it and this recipe will explore some of those areas so that you can tap in on some potential revenue.

    Let's start with the basics.

    Cart Abandonment is a case where a visitor on a website adds a product to the cart but leaves without completing the transaction/purchase. There are many reasons why visitors abandon their cart, and this is one of the problem areas that every business should look into. The opportunity to optimize is quite high.

    While it is not possible to completely eliminate cart abandonment, there are several things you can do to cut down on the percentage of customers who show intent to buy, but then end up leaving the site without a purchase. Understanding the user's behavior can help us get more insights as to why someone would leave the website after adding a product to their carts.

    Analysis Overview:

    This recipe provides an overall understanding of cart abandonment, and the steps that can be followed to reduce it –

    1. Steps to analyze data in a web analytics tool to understand the level of cart abandonment (Cart Abandonment Calculator)
    2. Deep dive into the Online Sales Funnel to see at what stage users are abandoning their cart and what could be the reason for it.
    3. Recommendations and Suggestions as to how Cart Abandonment can be reduced for a given scenario.

    Analysis Benefits:

    With the help of this article, you will be able to answer the following questions-

    1. Locate the stage at which visitors are abandoning their cart.
    2. Calculate Cart Abandonment Rate.
    3. Troubleshoot on the reasons why Cart Abandonment Rate could be high for your website and how changes and tests can be made to fix it.
    DAA members, go here to view full recipe.

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    Neha Paul
    Nabler (Corporate Account)
    Bangalore
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