Cart abandonment rate refers to the percentage of online shopping carts that are abandoned by shoppers without completing their purchase. It is calculated by dividing the number of completed purchases by the total number of shopping carts initiated during a specific period.
The significance of cart abandonment rate lies in its ability to help businesses understand the reasons why shoppers abandon their carts and identify areas for improvement in their online shopping experience. By reducing cart abandonment rate, businesses can increase their conversion rates and revenue.
One use case of cart abandonment rate is in website optimization. By analyzing cart abandonment data, businesses can identify specific points in the checkout process where shoppers are dropping off and optimize their website design or user experience to reduce friction and increase conversion rates. Cart abandonment rate can also help in optimizing email marketing campaigns and retargeting strategies