As online stores continue to flood the market, e-commerce shopping cart abandonment is at an all time high. One compilation of 33 different studies shows the average cart abandonment rate is 68 percent. So how do online stores encourage customers to complete their purchase? Simple Energy has hit upon a few tricks that successfully increased conversion rates by up to 20 percent on its e-commerce marketplaces. Learn about these successes in our upcoming series: Abandon Me Not.
While many e-commerce best practices are not new to the online market, they are for the utility industry. It’s important for new utility stores to draw on tried and true e-commerce best practices while also adapting them to the unique needs of the energy industry. Here are just two examples of e-commerce strategies that Simple Energy found works well when tested on utility stores:
- Free Shipping – 93% of customers indicate that free shipping encourages them to purchase more products online. Simple Energy has offered free shipping from the start and recently implemented free shipping after a $50 purchase. Customer feedback indicates that free shipping is a value-add and has encouraged customers to buy more. After finding out the shipping charge, one customer decided to purchase nine six-packs of LED bulbs to reach the $50 minimum.
- Abandoned Cart Emails – For customers who fail to complete the checkout process, Simple Energy sends abandoned cart emails to follow up with these users. Customers who leave items in their cart at checkout get an automatic email to remind them of what they are missing out on. After introducing abandoned cart emails, one utility store reached a cart recovery rate of 11.9 percent.
In this series we’ll share a number of strategies that, together, have meaningfully increased sales on Simple Energy’s utility-branded marketplaces. We’ll also discuss what adaptations we have made to tailor these strategies to the utility industry and their customers. Stay tuned for the next post on detailed insights into increasing conversion rates through reputation, education and simplification and the related success stories on Simple Energy’s marketplaces.