Abandonment rate

Definition of abandonment rate

A metric used to gauge user engagement, particularly in online platforms. It is calculated by determining the percentage of users who visit a webpage or use a service, but do not complete the desired action.

Example of abandonment rate

If a website has 100 visitors, and only 50 of them make a purchase or fill out a form, the abandonment rate is 50%. This metric is crucial for businesses, especially in e-commerce, as it reflects the effectiveness of a website in converting visitors into customers. 

High abandonment rates may indicate potential issues with user experience or the checkout process, prompting businesses to optimize their strategies for better results.

How to calculate abandonment rate?

Abandonment Rate = (Number of users who abandoned the process/Total number of users who initiated the process)×100

For example, if 100 users started a process (e.g., initiated a checkout on a website) and only 50 of them completed it, the abandonment rate would be:

Abandonment Rate = (100−50/100)×100 = 50%

So, the abandonment rate in this case would be 50%.

Strategies to reduce abandonment rate

• Streamlined checkout process
• Clear and transparent pricing
• Guest checkout option
• Retargeting campaigns
• Limited distractions on the checkout page
• Mobile optimization
• Trust badges and security assurance
• Multiple payment options
• Exit-intent pop-ups
• Abandoned cart emails