Here are a couple of staggering statistics standing between YOU and BIG PROFITS…
* based on the average of 27 different studies regarding e-commerce shopping cart abandonment, compiled by Baymard Institute.
3% – the average online conversion rate for online retailers. (Forrester Research)
90% – the percentage of leads that go COLD after one hour. $3Trillion – the amount projected to be left in carts in 2014.(SaleCycle)
There are three questions / answers that think will be of immediate value to you.
- Is it possible to double your conversion rate in 3 months or less?
- Are there tools available to turn the drifters into locked, loaded & loyal customers?
- What are some basic best practices for re-marketing and converting shoppers who initially abandoned their cart?
#1 is a simple math problem. Let’s assume you are among the average for purposes of illustration. You are converting 3% of your traffic, you have approx. 7.0% more to convert JUST from those who are abandoning their cart. Effective cart abandonment programs I have enacted for clients have seen upwards of a 48% close rate. That would be another 3.36% of your traffic converting! WHAT?? Is there ANY good reason not to make this a priority?
a. Self-Service Automation Tools are available from several Email Service Providers (ESPs). One of the best I have seen out-of-the-box has recently been launched by Mail Chimp. I say “best” – and let me qualify that to say “best of the basic-class” and ideal for those with tight budgetary constraints.
b. Data-Intelligence / Retention Automation Partners
A whole new breed of strategic partners has emerged for the online retailer – and one of the most compelling brings transactional data and demographic data together with events and business logic to produce remarkably PERSONALIZED experiences to shoppers. Call it Marketing Automation, Personalization, Retention Automation – whatever you like…but THIS is powerful stuff. The cost of these SaaS solutions can be steep – though I consider some to be reasonable – but all VERY VALUABLE. (I am already planning a separate blog to highlight my own top-ten list – but will highlight a few here for example.) I have worked with the likes of Simple Relevance, Marketo, LisTrak, dotMailer, SpringBot, Bronto and Windsor Circle to name a few. My most recent client project included launching a re-branded site on Magento Enterprise, integration with NetSuite ERP, and linking Magento extensions with MailChimp/Mandrill and Windsor Circle’s Retention Automation platform. This is not terribly complex to execute, but I can tell you that the results are like MAGIC! We managed a drop in cart abandonment rate from 69% down to 29% in the first two months – and that my friends is VALUE 🙂
#3 Basic Best-Practices of Cart Abandonment Email Marketing Automation
Create a Series of 3 Emails to be sent to customers who add items to their cart and do not complete checkout. Per our statistic earlier that 90% of the leads go cold after an hour…
Send the first “Reminder” email 1-2 hours (max) after a stagnant cart is created. The FIRST email should contain the following 10 key components:
- Clear Subject Line Calling Attention to the Contents of the Cart
- Focus the message on Problem Solving vs Sales – ie. “Did you experience trouble checking out? We want to help…”
- Include a Clear Line Item Summary of the Cart Contents
- Include a Thumbnail Image of each Item
- Include a Clear Call to Action button to complete Checkout Now
- Optionally – and this will tend to promote a higher conversion – offer an incentive to complete checkout TODAY.
- Add recommendations for additional products – “You may also be interested in…”
- Include Testimonial and/or Product Ratings
- Include Mention of Your No-Hassle Return Policy (you have one, right?)
- Include an Opt-out for future emails
The second and third emails should go out 24-48 hours and 72-96 hours later, respectively. The 2nd email should always contain an incentive offer: “Get 5% Off Your Order when you complete checkout within the next 24 hours”. The incentive will increase your 2nd round conversions by 33-39%. The 3rd email can be a little more playful – and targeting a long-term win-back. Offer an incentive to complete checkout, but also offer some sort of incentive to connect via social media. For example, 5% off your next order if you Follow Us on Twitter. This way, you make a connection that has longer term benefits, and can still incent the return visit as well.
Questions about how to execute an Automation Strategy or about any of the Automation Partners out there? I live for this stuff 🙂 Feel free to drop a note to firstname.lastname@example.org, or connect with me on twitter.