Why do so many would-be furniture customers abandon their carts during their shopping journey? Understanding why consumers choose not to complete a transaction could be the key to growing your sales during the upcoming holiday season.
Purchasing furniture can be a prolonged and thoughtful journey. A recent survey found that 60% of shoppers spent several days or weeks making a decision before purchasing a new item. And yet, around 80% of furniture consumers abandon their shopping journeys and carefully curated carts.
We’ve combed through the data to understand the key factors driving these results. With these insights, furniture retailers can implement new strategies to capture sales lost to cart abandonment and expand their customer universe.
Why Do Shoppers Abandon Their Carts?
Several factors unique to the furniture industry contribute to high cart abandonment rates, including:
Price Sensitivity: Furniture is typically a significant investment. The final price can cause “sticker shock” especially when extra costs such as taxes and delivery fees aren’t communicated transparently. Customers often have a budget in mind, and these added costs can push the total beyond their means, leading them to abandon their cart.
Lack of Payment Flexibility: Traditional payment methods don’t always align with customers’ financial situations. Many customers don’t qualify for traditional financing options and may not have the cash for a large furniture purchase. A lack of alternative financing options, such as lease-to-own, can create a barrier to purchase, particularly for credit-challenged shoppers.
The “Just Browsing” Effect: Many online furniture shoppers are in the early stages of their buying journey. They may be comparing prices, styles, and brands without a firm intention to purchase immediately.
Strategies to Minimize Cart Abandonment
Fortunately, furniture retailers can take steps to reduce cart abandonment and improve conversion rates:
Offer Diverse Payment Options – Provide a variety of payment methods, including lease-to-own solutions. This caters to diverse financial needs and makes purchases more accessible.
Embrace Pricing Transparency – Display all costs associated with a purchase upfront. Utilize tools like price calculators that provide accurate cost estimations early in the customer journey.
Implement a Comprehensive Retargeting Strategy. Employ a variety of tactics to re-engage customers:
– Offer personalized cart abandonment emails with targeted discounts.
Showcase similar items other customers purchased.
– Utilize dynamic ads featuring abandoned products.
– Highlight the benefits of flexible payment options, such as lease-to-own, to address potential affordability concerns.
– Remember to segment your audience and tailor messages based on their behavior.
– Extend your retargeting efforts across social media and your website for a consistent brand experience.
Streamline the Checkout Process. Ensure a seamless and efficient checkout experience by offering guest checkout options and minimizing the steps required to complete a purchase.
Build Trust and Confidence. Display customer testimonials, security badges, and clear return policies to foster a sense of trust and security throughout the purchasing process.
Need A Partner in Reducing Cart Abandonment?
Katapult’s lease-to-own solution offers a powerful tool for furniture retailers to combat cart abandonment and drive revenue growth. Here’s how:
Increased Affordability: Katapult’s flexible payment plans make furniture purchases more manageable, especially for credit-challenged consumers. This reduces price sensitivity and empowers more shoppers to complete their purchases.
Upfront Payment Clarity: Our integrated price calculator lets customers see affordable payment options directly on the product page, turning hesitant browsers into confident buyers. In fact, half of the shoppers who interact with Katapult’s price calculator apply for a lease, demonstrating the power of transparent pricing.
Co-branded promotions: We actively partner with merchants to develop and execute co-branded marketing campaigns to drive customer engagement and boost sales, including holiday and pricing promotions.
Remarketing Efforts: We work with retailers to implement targeted remarketing campaigns that re-engage pre-approved customers who have abandoned their carts.
Frictionless Checkout: Katapult can integrate seamlessly into your checkout process, ensuring an efficient and user-friendly checkout experience for your customers.
By partnering with Katapult, furniture retailers can effectively address the key drivers of cart abandonment, expand their customer base, and unlock new revenue potential. Ready to learn more? Contact Katapult today!
