Cart abandonment is an issue that is facing many brands in the age of online shopping. But nowhere is this more evident than in the travel industry.
In fact, travel marketers are facing many challenges associated with changes in consumer behavior. With a long sales cycle, multiple touchpoints, emerging OTAs, D2C, and competition from an oversaturated market – it’s a surprise that the purchase is complete!
But with the right tools and an effective strategy, travel brands can reduce their own abandonment rates and get a higher return on investment (ROI) for their advertising.
The data support the notion that travel marketing is in crisis. Between the basket and checkout, there is a 20% fall rate. In fact, less than 1% confirm their purchase. This adds up to incomplete travel purchases of about 1.78 trillion annually.
Statistics do not inspire confidence compared to other industries. Cart abandonment rate in travel is 81% as opposed to just 68% in other online retail.
These figures are worrisome for the future of online travel marketing. And they require action by marketers to bring figures in line with other industries.
But first, what issues should be addressed to fix it?
What’s wrong with travel marketing?
Why are travel brands struggling to make that last conversion? What is it about their websites, advertising and branding that fails to turn heads?
It is important to note that travel marketing is one of the most competitive and complex industries to market to all. In a recent study by Google, it was found that the average consumer travels to more than 500 touchpoints, including those in their journey to find a complete vacation.
What’s more, customer loyalty is not what it once was – there is a fierce competition, which focuses more on who is presenting what and how.
Nevertheless, there are some mistakes that marketers make, which do not help their cause:
1. Pricing is not being mentioned
A survey of the sales cycle found that 53% of shoppers abandoned their car when the final price was shown. This is reflected by the fact that many travel brands add additional costs before checkout. But without consumer confidence, how can you expect that final sale?
2. poor user experience
Mobile-first these days no one is talking about marketing. Mobile optimization should be at the forefront of advertising and website design. And yet, many travel consumers still prefer to book their holidays on the desktop.
Why is this? According to Tnooz, 32% of bookings on mobile are abandoned due to slow load times. Simple changes to the default for a numeric keyboard for payment details can greatly enhance the user experience.
3. Localization failure
For global travel brands, being able to localize your advertising and your website is key to high conversion rates. If your ads speak your customer’s language, why should your checkout be different?
Failure to offer conversion calculators for different currencies has been reported to impact not only travel but also eventual sales across industries.
4. Requesting unnecessary information
Brands that request too much information about the risk of booking lose customers this way. In fact, you lose 10% of customers for every unnecessary area at checkout.
Therefore only request the necessary information. Learn from airlines. They usually ask for more information about travel time, when the payment is already secured. Leading to issues with highly laborious checkout procedures.
5. Failed to retire
Whether it is through email retargeting or to display ad retargeting, both provide opportunities to encourage customers to return to their site before their basket freezes.
So what does effective performance retargeting look like?
Apart from the travel industry, brands are using dynamic creative along with retargeting to attract customers to their page. And for travel marketers to significantly reduce their cart abandonment rate, it is important to rethink.
In fact, it has been reported that without reconsideration, 8% will return to the abandoned site, but with retargeting – this increases to 20%.
To do this effectively, there are some best practices that you must follow:
1. Time is of the essence
A study by MIT stated that shopping carts tend to cool within the first hour. So make sure that every advertisement you do is put in front of the viewer within time (no one wants to see that new man and dog’s Christmas jumper chasing you in the new year).
2. Target on channels
Omnichannel is important in this multi-device driven world. If their car was on the desktop, there is no reason why your ads wouldn’t be targeted on mobile either.