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Abandoned Cart Best Practices; A Revenue Retrieval Guide
You want conversions, not just traffic. If you experience a high cart abandonment rate, you're not alone. In a study conducted by Baymard Institute, the average online shopping cart abandonment rate is 67.44%. For most eCommerce companies, a small decrease in the cart abandonment rate can significantly boost the bottom line.
According to website optimization company, Invesp, the top four reasons why consumers abandon their cart are:
- High shipping costs
- Insecurity and doubt about purchase
- High product price
- Going to save for later consideration
In a perfect world, you’ll convert the consumer into a sale and hopefully, they'll continue to purchase. With a resounding endorsement, they may even convince others through word of mouth referrals to purchase too! Unfortunately though, not all customers make it through the purchase process.
Here are 4 best practices to convert your abandoned carts into revenue:
Abandoned Cart Best Practice: "Three-to-One"
Implement the abandoned cart best practice of "three-to-one" by sending three remarketing emails within one week to convert the sale. The consumer has shown intent to purchase and was about to pull the trigger; you should re-engage them using remarketing tactics. Your remarketing messaging should be time sensitive, helpful and persistent without being pushy.
Research suggests that following up with a consumer 12 to 24 hours after cart abandonment can increase conversions by 300%. Thus, the 12 to 24 hour window is critical to re-engage your customer and convert them.
Practice: "The Courtesy Email"
The courtesy email documents which items were placed in the cart and what the final cost would be. The email should simply be a reminder of the items they have left behind, which will naturally encourage the consumer to complete the checkout.
Closely monitor the effectiveness of this courtesy email and any improvement in your conversion rates.
The effectiveness of the email could be a function of the content, the heading of the email or delivery timing. All of these elements should be A/B tested to improve effectiveness.
Abandoned Cart Best Practice: "Complimentary Goods"
Sending an email that suggests complimentary goods to those left in the abandoned cart is another best practice. Allow the user to add these complimentary goods to their cart as well.
You may want to include a discount in this email, provided the consumer completes their transaction in the next 24-48 hours.
Abandoned Cart Best Practice: "Urgent Offer"
The final best practice uses an email with strong language to create a sense of urgency. This email should offer a more aggressive discount to entice the potential customer to purchase immediately.
Examples of this offer include free shipping. A popular alternative to a financial incentive is to create a sense of scarcity by showing a low number of items remaining.
It's important to know which of your visitors leave abandoned carts. You don't want to train your returning customers to abandon their cart with the expectation that they will receive an incentive later. Think of retailers who have “Day Sales” so often that customers expect it and wait for a sale to purchase.
Planning your communication strategy and incentive program for abandoned carts can take some time, but it’s worth it. The abandoned cart customer segment should not be forgotten. While you hold your converted and returning customers in high esteem, don't lose sight of those potential customers that have already interacted, completed research, and shown interest and intent towards your company!
Posted October 23, 2013 in Ecommerce