single php
cdp menu

How to reduce cart abandonment with first-party data


In recent times, “Cart Abandonment” is a serious issue faced by almost all eCommerce stores. By Baymard Research Institute, the average shopping cart abandonment rate is 69.57%, accounting for an $18 billion loss in revenue each year. In simple words, 7 out of every ten shoppers abandoned their carts.

There can be multiple reasons for cart abandonments before the purchase decision is made. And some of the top reasons are: 

Reasons for e-commerce store cart abandonment

👉 Confusing check-out page

👉 Too much of Shipping cost 

👉 Mandatory account creation before checkout

👉 Payment security protocols

👉 Lack of other payment options

👉 Ambiguous refund and return policy 

👉 Unexpected delivery details 

👉 Confusing UX on the website

👉 No discounts and promo codes while checkout 

On Google, we have plenty of solution articles on how to reduce e-commerce cart abandonments. Some of the commonly recommended solutions on these articles to reduce cart abandonment are

👉 Retarget your cart abandoners via personalized ad campaigns:  

The marketers can segment these cart abandoners based on their website user behavior. 

For example, if the cart value falls under high purchase value, the marketers can create a segment of those users and run a campaign personalized for free shipping or promo codes. 

Similarly, the marketers can create a segment of the users who had issues while making the payment to run an ad campaign re-assuring about the payment issue has been resolved and you can have a smooth transaction. 

👉 Email personalization as a follow up: 

You can segment the users based on their issues and email them personalized to re-assure that the payment glitch has been resolved from your end.

For instance, an email to users whose cart value falls under high purchaser, you can send an email for a free shipping offer or discounts or promo codes. 

But are marketers able to retarget the cart abandoners? 

With not much buildup, after the iOS’14+ update, the retargeting ad campaigns have taken a huge toll. 

Let’s say, you wanted to segment the “cart_abandoners” and run a personalized ad campaign on Facebook to make them revisit the website again. 

But iOS’14+ update screwed the Facebook custom audience match rate

When you upload the 20k users of the custom audience list “cart_abandoners” in the audience manager, Facebook could match only 25% which is close to 5k users from the total audience size. 

Why iOS’14+ update screw the Facebook custom audience match rate?

Facebook has limited access to your user behavior data as the iOS user has the choice of opting out from tracking from the advertisers. 

With lesser access to behavioral data of cart abandoners and limitations in pixel tracking, the match rate crumbles and falls less than 25%. This results in shrinking the retargeting audience size substantially (i.e. there are instances you won’t be having enough audience to run the retargeting ad campaigns).

What does the privacy-centric future look like for marketers?

After Apple’s iOS’14+ update, there was a huge dip in the ad campaign performance and most of the businesses had their remarketing audience size reduced beyond 60%. 

👉 Google phasing out third party cookies from chrome by 2023 

By 2023, Google announced phasing out third-party cookies from chrome. Also, browsers like Safari and Firefox have already eliminated third-party cookie tracking. 

👉 Google announced Android limits third-party user data sharing

 Google announced Android limits third-party user data sharing

Like, Apple’s iOS’14+ update, Google has announced that in the next couple of years, Android is also going to restrict user data sharing with third-party.  

Marketers have already seen a huge dip in the ad campaign performance and retargeting the audience after the iOS’14+ updates. And this is just a “first-look” at how the future is going to be when Google enforces its updates as well. 

For marketers, the way they approach and target their users is going to be different. No more reliance on third-party tracking for understanding their users. 

The only solution left going forward

We understand that relying on advertising platforms to track the user behavior i.e.third-party tracking is not going to be fruitful as how it was before,  

The only solution left going beyond collecting your own customer behavior data i.e. first-party data and activating your audience throughout the marketing funnel to give a personalized experience for the users. 

advertising platforms for advertising only

First-party data is the future:

When we say, first-party data, it is more than an email id, contact number, Instant forms, CRM data i.e.known visitors.

Anybody who falls or stumbles on your website is your first-party data. These are called your anonymous website visitors. And 98% of your website visitors are anonymous. 

👉 Activate anonymous website visitors 

Until the users make the purchase and give in their personal information, the user remains an anonymous visitor. 

You can segment these anonymous visitors based on the user behavior and run ads to engage with them again and bring them back to the website. 

By activating the anonymous website visitors, you can increase the bottom of the funnel users and bring them closer to conversion.

Check out the first-party data strategies to activate and convert the anonymous website visitors to purchasers.

Segment your cart abandoners to bring them back to the website

With the anonymous website visitors data collected, you can segment the cart abandoners is based on the reasons that they have abandoned the carts like: 

👉 Cart abandoned during payment in the last 7 days 

👉 Cart abandoned during account creation 

👉 Added_to_cart but not purchased in the last 14days 

👉 Added_to_cart with higher cart value in last 

👉 Added_to_cart but not purchased in the last 30days 

First-Party data improves Facebook custom audience match rate by 2X – 3X

You have both anonymous and known user profiles collected, with which, you can improve your Facebook custom match rate up to 80%. 

Along with the first name, email id, and demographics, we also collect Browser ID, Click ID, IP address, User-agent, Facebook ID, Google ID, etc of both anonymous and known users. 

When these collected and unified first-party behavior data sent to Facebook, it easily improves the custom audience match rate by 2X to 3X. 

We did an experiment between Facebook Pixel data and First-Party data custom audience match rate to check which was better. 

The results were – Facebook custom match rate using Facebook pixel data was less than 25% whereas using First-party data the match rate was beyond 80%. Read more to know about the experiment.

Reduce cart abandonments in your e-commerce platform 

👉 Reduce cart abandonments for Woo-Commerce and other e-Commerce platforms 

Integrate CustomerLabs with WooCommerce to track events of your website visitors along with other parameters to effectively unify the customer profiles which helps to sync these to any tool in your Martech stack to boost marketing effectiveness.

You can implement the above-discussed strategies and segment your cart abandoned users on WooCommerce and run ads based on the user behavior. 

In your WooCommerce platform, you can segment users who abandoned the cart for the reasons like

👉 Cart abandoned during the user account creation page

👉 Cart abandoned during the payment page 

Similarly, in your other e-commerce platforms, like Shopify, BigCommerce, Magento, WordPress you can segment users who abandoned the cart with high cart value:

👉 Cart abandoned with high purchase/cart value 

👉 Cart abandoned by loyal customers ( the one who has purchased already)

You can segment the high cart value users and provide free shipping or promo codes. 

Also, you can do advance audience segmentation based on the purchase value, and other user behaviors and build a strategy to improve the lifetime value of the customer.

Key takeaways: 

👉 Cart abandonment is an issue that every digital marketer faces and Google about in their everyday routine. After the iOS’14+ updates and other announcements towards privacy, the usual or traditional way of retargeting doesn’t reach the target audience.

👉 Marketers are left with no choice but to own the customer behavior data i.e. First-Party data and understand the reasons for cart abandonment. Then segment the users based on those reasons for abandoning the cart and provide a personalized experience to bring them back to the website. 

👉 Most importantly, use Facebook, Google, and other advertising platforms for running ad campaigns only and not for tracking your website user behavior i.e. third-party tracking.

We’re just an email away for a quick chat on how to begin your first-party data journey and activate your cart abandoners to drive more sales. Just let us your convenience and availability here.

The latest news, perspectives, and insights from CustomerLabs

© 2022, Customer Labs Inc. All rights reserved.

Schedule 1-1 meeting with first-party audience expert