Posted in Finance, Accounting and Economics Terms, Total Reads: 629
Definition: Abandon Rate
Abandon Rate (aka Abandonment Rate) is generally used for the number of customer calls dropped before being connected to an agent as a percentage of the number of total calls made to the call center. Currently, Abandon Rate is also being used as a KPI in e-commerce websites where shoppers are known to abandon their virtual shopping carts resulting in uncompleted transactions. Similar to call centers, abandon rate in e-commerce websites is calculated as the number of abandoned carts with respect to total shopping carts in a specific period of time.
Several reasons can cause a spike in abandonment rate, including the following:
• Fewer resources than the customer expectations
• Sudden crisis that may overwhelm the system
• Highly complicated payment process (Specific to e-commerce websites)
• Mandatory lengthy registration process after the items have been added to the cart (Specific to e-commerce websites)
• Limited payment options(Specific to e-commerce websites)
Abandon Rates imply insufficient resources for the call centers. Either the number of staff employed is too less or the staff is unable to handle calls within timelines. Looking at past data can help in analyzing the patterns and employing a call-back solution as much as possible.
In websites, the problem may be alleviated by streamlining the shopping process (keeping the registration process small and non-intrusive), providing various payment options that are likely to be used by target customers or notifying the user of the availability of product and shipping costs, etc. in advance.