If a Virtual Shopping Cart Gets Abandoned, Does Anybody Hear It?
Posted by amy.robson | 16 July
It’s one of the biggest problems online retailers face over the Christmas period: Shopping Cart Abandonment. Consumers jump online to create wish lists in their virtual shopping cart but then fail to hit enter and complete their order.
Retail (77.5%), Travel (82.7%) and Fashion (66.8%) sectors see the highest rates of abandonment**** but when we look at the conversion of abandonment to purchase, it’s in fact less of a problem and more of an ‘untapped opportunity’ that could see an increase in sales of approximately $2.52 trillion worth of merchandise*
There’s a lot of advice out there for brands looking to reduce cart abandonment, but often we overlook the value of the ‘abandonment email’. Designed to bring consumers back, the ‘abandonment email’ is a little reminder of what’s in the customer’s cart and a nudge as to why they should return to complete their order. These emails may include a time to expiry for urgency or discounts and incentives to bring customers back.
• 61% of all shoppers report that they're likely to return to a site after receiving an abandonment reminder email, but the other 39% will need a little bit more than an email convincing them to do so
• 46% do expect an email, with 21% of them expecting the reminder to include an incentive (Here lies an added opportunity)
• Initial emails, sent three hours after a consumer abandons a cart, average a 40% open rate and a 20% click-through rate, according to Listrak.*
What trends are the top 500 leading brands seeing with their abandonment emails?
• Among 500 leading brands, the average value of the order (AOV) of abandoned conversion to purchases is 14.2% higher than a typical purchase, and each recovery email sent generated over $8 in revenue, an increase from 2014.
• Nearly half of all abandonment emails were opened, and over a third of clicks led to a recovered purchase back on the site.
TLC’s tips for brands
1) Don’t be afraid to send an abandonment email (or two)
53% of consumers don't actually expect to receive an abandon reminder after they've ended a shopping session BUT more than half of the most active shoppers, frequent (59%) and occasional (51%), agree that shopping cart reminder emails are helpful.**
2) Be creative and thoughtful in your follow up
Abandoned cart emails, as well as other shopping cart abandonment follow-ups, must provide more than a product image and details.”**** Adding a further incentive or reward for completing the purchase can excite the customer and if targeted effectively, can help them visualize owning and utilizing the product.
3) Know that an abandoned shopping cart doesn’t have to automatically translate to a lost sale
Three-fourths of shoppers who have abandoned shopping carts say they plan to return to the retailer's website or store to make a purchase*** so It’s up to the brand to remind and incentivize them to come back. Any strategy that that helps retailers collect and leverage online shopping cart data is likely to be a worthwhile investment*
Over the hectic Christmas period particularly, don’t neglect your abandonment email initiative. Raise email click-through rates and abandonment conversion with a high - value experience offer in your email, reward purchase with a free beauty treatment, or a small ‘thank you’ to add extra value to the cart-in-waiting. Ask us how.
*BusinessInsder **Bronto, ***DMNews ****EMarketer ***** SaleCycle