What is Abandonment Rate? A Critical E-Commerce KPI Explained
In the bustling world of e-commerce, the moment a customer leaves your website without completing their intended action; most critically, without finalizing a purchase; represents both a significant challenge and a valuable opportunity. This phenomenon is measured by your store’s abandonment rate , one of the most crucial and revealing Key Performance Indicators (KPPs) for any online retailer. Simply put, it’s the percentage of visitors who initiate a process but fail to complete it. While it can apply to any conversion goal (like signing up for a newsletter), it is most famously and devastatingly applied to the shopping cart . Understanding, tracking, and strategically lowering your abandonment rate is not an option; it’s a fundamental requirement for survival and growth in a competitive digital marketplace. What Exactly is Abandonment Rate? Abandonment rate quantifies lost opportunities. It is calculated by comparing the number of completed processes against the number ini...