How Customer Loyalty Accelerator Helps You Reduce Online Cart Abandonment

One of the biggest challenges facing Shopify online retailers is cart abandonment — when shoppers add something to their virtual shopping cart but don’t end up buying it.

Around 70% of online shopping carts are eventually abandoned, according to the Baymard Institute, an e-commerce consultancy firm. The top reason customers walk away – they say they were just browsing and weren’t ready to make a purchase.

So many merchants are searching for that silver bullet to get shoppers to follow through and click the “buy” button.

Why Amazon makes you click a box to redeem coupons?
This is exactly why Amazon makes us go through the extra step of clicking a box to “save $2 when you apply this coupon.” Why doesn’t the coupon just apply automatically?

Those orange “coupon” banners below the price on Amazon’s online store may be a head-scratcher, but there is good marketing strategy behind it.  By making us click a box, Amazon aims to avoid the “cart abandonment” problem.

Putting a little “effort” into online shopping
Amazon’s tactic to display a coupon option, instead of just automatically showing a discounted price, gives shoppers an extra incentive to make the purchase right away, say marketing experts.

Customers want to be rewarded for the effort they put in to shop. It may not feel like much to click a box — but it does make a difference.

Amazon’s coupon box puts customers in a more active and engaged role in landing a reward, making it more visceral for them, said Tamara Masters, an assistant professor of marketing at the University of Utah’s David Eccles School of Business who studies shopping psychology.

By consciously seeing and clicking on the coupon box, instead of just having the coupon applied automatically, the “reward can be expected to be felt more acutely,” Masters said. “You get to apply it and see the happy effects.”

How Customer Loyalty Accelerator’s Online Merchants Duplicate Amazon Tactics

In a similar fashion, Customer Loyalty Accelerator (CLA) online merchants duplicate the same psychological “buy now” effect of the Amazon coupon. Your customers earn in-store credits with their purchases, then need to click to apply that earned credit to their online purchase.  Once that has occurred, the chances for cart abandonment are greatly reduced.



What Is CLA?
The Customer Loyalty Accelerator (CLA) app for Shopify and Clover platforms helps small and medium sized merchants compete with retail Goliaths like Amazon and Walmart in building digital relationships.  A groundbreaking loyalty program, CLA uses the power of spending-based store credits to reward return customer visits – and higher spending –generating more revenue for your store. Another big side benefit is the reduction in cart abandonment through the “Amazon coupon effect.” CLA also includes a Referral Promotion feature to broaden your customer base. Learn more here.