The Two Most Common Mistakes of Shopping Cart Abandonment Campaigns
Shopping Cart Abandonment has risen to 75% in the first half of 2011, according to Forrester Consulting, up 4% from 2010. In turn, online retailers are losing more than $18 billion per year. And, according to a survey by Listrak earlier this year, a mere 13% of the Internet Retailer 500 have active shopping cart abandonment campaigns in place. Despite the overwhelming figure, few etailers have a strategy in place to combat the problem - and fewer them properly - to get shoppers back to complete their purchase. But those who do it right are recovering significant revenue, some to the tune of 30% or more.
With that said, here are two of the most common mistakes of shopping cart abandonment campaigns, and how you can avoid them!
1. Limiting Efforts to Low Hanging Fruit
Of the retailers that do have a strategy, many limit themselves to the low-hanging fruit. Most know to send an email within 24 hours of the sale abandonment, while the prospective purchase is still fresh in the consumer’s mind. By sending an email to the consumer shortly after the sale is abandoned, retailers are able to connect with the shopper when they are most engaged, and will drive some conversions. However, we’ve found that one email alone is not enough; rather, a series of messages provides significantly greater return. Retailers should send three messages to shoppers who abandon to be truly effective.
And each etailers’ series structure is unique; one may find the greatest success by making an offer (free shipping or discount) in the first email, while another may find a simple reminder in the first message successful. Others find the best return in sending offers only in the second or third email. Regardless of the structure or timeline, a well tested, strategic email series will return significant revenue.
2. Generically Addressing Abandoners
Of the retailers that do have a strategy in place, some are ignoring other email tactics, like personalization. According to the survey only 34% used personalization in 2010. By including the customers’ name, pictures of the merchandise left in the cart, and personalized subject lines, retailers have a much greater read and conversion rate. And to go a step further, you can include customer reviews of the items left in the cart to entice the shopper to complete the purchase. You can also tailor offers based on where a customer abandons, for instance if the cart is abandoned on the shipping page offer free shipping on the order. The more personal and relevant you are in emails to your shoppers, the more interaction and conversions you’ll see.
A strategic shopping cart abandonment campaign has the potential to secure thousands of dollars in unrealized revenue for retailers every month...so, what are you waiting for? Start collecting today!
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