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How Would You Reduce Cart Abandonment in An E-Commerce App

The CIRCLE method is a structured approach to solving cart abandonment issues in e-commerce, consisting of six steps: Context, Issue, Root Cause, Consequence, Learnings, and Execution. Key factors contributing to cart abandonment include unexpected charges, technical glitches, and lack of trust during checkout. The solution involves redesigning the checkout process for clarity, integrating reliable payment options, and implementing personalized recovery strategies to enhance user experience and retention.

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Amitkumar Mishra
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6 views9 pages

How Would You Reduce Cart Abandonment in An E-Commerce App

The CIRCLE method is a structured approach to solving cart abandonment issues in e-commerce, consisting of six steps: Context, Issue, Root Cause, Consequence, Learnings, and Execution. Key factors contributing to cart abandonment include unexpected charges, technical glitches, and lack of trust during checkout. The solution involves redesigning the checkout process for clarity, integrating reliable payment options, and implementing personalized recovery strategies to enhance user experience and retention.

Uploaded by

Amitkumar Mishra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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How I would solve cart

abandonment using the


CIRCLE method?
Step by Step guide Jesal Shah

What is the CIRCLE Method?


The CIRCLE method is a structured framework used in Product Management
interviews and real-world problem-solving. It helps you break down a
problem logically and communicate your thinking like a true product
leader.

CIRCLE stands for:


C – Context
I – Issue
R – Root Cause
C – Consequence
L – Learnings
E – Execution
What should you ask yourself while writing each
step?
C = Context

“What is the situation? Who is involved? What is the product/problem


space?”

What kind of product are we talking about?


Who are the users?
What is the environment around the problem?

I = Issue

“What exactly is going wrong?”

Where in the user journey is the friction or drop-off happening?


What are the pain points or complaints?
What data or observations show there's a problem?

R = Root Cause

“Why is this issue happening underneath the surface?”

Is it a tech issue?
A design flaw?
A missed user need?
What was ignored while building the feature?

C = Consequence

“What will happen if we don’t solve this?”

How does this affect the business, users, brand, or revenue?


Will users leave?
Will it hurt growth or retention?

L = Learnings

“What new understanding did we gain?”

What did we discover about the user?


What did we miss the first time?
What should we keep in mind for the future?

E = Execution

“What are the steps to fix it?”

What’s the solution or action plan?


What should we prioritize?
How will we track success?

Ask Clarifying Questions (interviewer)

Do we have any data on whether drop-offs are higher among first-time users
vs. repeat users?
Is this issue more prominent on mobile or desktop?
Are there any existing cart recovery strategies already in place, like reminders
or follow-up emails?
Do we have benchmarks from competitors or internal research on friction
points in our checkout flow?
Do we track metrics like time-to-checkout or success rate of applying
discount codes?
Is there a priority segment we are targeting with this fix — e.g., Gen Z, senior
users, or low-literacy users?

(If they don’t have answers, assume)


“Alright, I will assume this is a B2C mobile-first e-commerce platform like
Amazon, with a 56% cart abandonment rate across both new and returning
users.”
🚫 What not to do:
Don’t ask all of these at once — that can overwhelm the interviewer or
make it seem like you're unsure.
Instead: Ask 2–3 smart clarifying questions at the start
Then make logical assumptions as you move forward in your solution

C – Setting the Context


Let’s take any famous platform as an example. While millions of users—from
teenagers to elderly people—add products to their cart daily, a significant
portion drop off before completing the purchase. Cart abandonment is a
key issue for any e-commerce business.

Users typically leave after reaching the payment stage due to:

Unexpected delivery charges


Technical glitches
Discount disappearance
Broken payment integrations
Lack of trust in the final step

This directly affects both user experience and revenue conversion.


I = Identifying the Issue
Cart abandonment happens largely at the checkout and payment stage,
where around 56% of users exit the flow. The core issues include:

Disappearing discounts or coupon codes not working


Limited or unclear payment options
High delivery charges shown at the end, not upfront
Address auto-fill or map integration not working
Complex UI with too many steps or errors
Lack of trust at final stage — no visual cues like secure payment or cash-
on-delivery options
These create friction, confusion, and lack of trust, causing users to drop
off.

R – Finding the Root Cause


The root cause lies in a poorly optimized checkout flow and incomplete
integration/testing of the system:
Checkout is not personalized or adapted for mobile-first experience
Payment gateway integration may be broken or unreliable
Discount logic is not consistent across cart and checkout
There’s no transparency early in the funnel — delivery fees and timelines
are revealed too late
User trust is missing due to lack of social proof, secure icons, or reliable
support options
Onboarding or returning users are not segmented — everyone gets the
same experience
This suggests a lack of journey mapping, edge case handling, and real
user testing.
C – Understanding the Consequence
If we don’t fix this:

E-commerce app will continue losing potential revenue at the last mile
Users will feel cheated or misled — especially when discounts disappear
or fees are added at the end
Trust will erode, leading to negative reviews and drop in loyalty
Sellers may see poor conversion and could stop listing products
Competitors offering smoother experiences could take the market
Marketing spend will be wasted as conversion doesn’t happen
SEO and app engagement metrics could drop if bounce rates rise
In short: Cart abandonment isn't just a UX issue, it's a business risk.
L – What We Learned
Checkout is not just a transactional space — it's a trust-building moment
Users want transparency, speed, and clarity — not surprise costs or
broken steps
Even small bugs (like non-working coupon fields or payment options) can
lead to drop-offs
Consistency in experience across the cart and payment screen is critical
Real value comes from thinking like the user — reducing cognitive load
and helping them feel secure
We must test edge cases, do user segmentation, and look beyond
averages

Also, this is a chance to create retention — not just conversion. If we


simplify this, we increase lifetime value.
E = Execution
Phase 1 – Core Fixes (MVP)

Redesign checkout flow for clarity and speed (limit to 3 steps max)
Integrate a stable, multi-option payment gateway (UPI, Paytm, GPay, COD,
cards)
Ensure coupon code fields are functional, and discounts persist through
to final payment
Show delivery charges and estimated time early in the funnel (product
page or cart itself)
Enable address auto-fill from user profile or saved addresses
Add trust indicators — secure badge, verified delivery partners, etc.

Phase 2 – Personalization + Recovery

Add cart reminders via push and email, showing product image, discount,
and urgency
Use “save for later” and “wishlists” to bring users back
Show comparative pricing or price-drop notifications
Offer limited-time coupons or incentives for abandoned carts
Test localized content and language support for better engagement

Validation

A/B test improved checkout flows


Monitor conversion rate, cart-to-checkout drop-off rate, and coupon
redemption
Interview users who abandoned their cart and map reasons
Use heatmaps and click tracking for drop-off points

Success Metrics

Drop-off rate reduced by X%


Checkout completion time under Y seconds
Cart recovery rate up by Z%
Discount redemption success rate
Increased NPS from checkout experience
Final Thought
Solving cart abandonment is not just about removing friction — it’s about
building trust, speed, and delight at the final moment. If we get it right, we
don’t just increase revenue — we win user loyalty for life.

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