Everything you need to know forcart abandonment emailremarketing success
Everything youalways wanted to know aboutcart abandonment emails*cart abandonment Explained by Lisa MolingLoren McDonald*BUT WERE AFRAID TO ASK
Speakers Lisa Moling, E-Marketing Manager, DEMCO • Develop & implement e-marketing programs including email marketing, online promotions, web analysis, paid search, social and CRM • Over 15 years online and direct marketing experience in diverse industries including tourism, insurance and industrial safety. Loren McDonald, Vice President of Industry Relations, Silverpop • Leads industry leadership activities including more than 500 articles on email marketing, blogs, educational sessions and Webinars. • 28 years experience in marketing, consulting and strategic planning with executive level positions at Lyris, EmailLabs, USWeb/CKS and Arthur Andersen. • eec Marketer of the Year - 2011
About DEMCOAbout DEMCO• Based in Madison, WI• Sell library supplies – Originally a catalog company – Now web is a primary order source• B2B, but respond like consumers
Agenda: 5 Categories > 12 Questions Background Creative / Business Incentives Case Timing / # Data / of Emails Integration
- We started with 25+ questions - Rehearsed with 19 - Cut to 12 for today
0. Are we cool with what cartrecovery is, why you should do it, ….?
Building the Business Case
1. How do we get the necessary budget, IT and marketing resources to make it happen?
Assess capabilities & articulate goalsGap analysis demonstrated that we needed to search for a new ESP • “Batch & Blast” emails via a small business email service provider. Current • Using Adobe SiteCatalyst Capabilities • Read research studies which demonstrated conversion rates on abandoned cart emails could be 4-6x conversion rate of a “regular” email • Increase sales by optimizing conversions – Identify and market to cart abandons • Free up manpower by automating routine tasks - API integration allow us to Program Goals automate opt-outs/opt-ins from our email system to our business system • Track Revenue per Send - New email service provider could integrate with web analytics so we could track email sales
Build Revenue ForecastEstimate incremental revenue analysis - demonstrates potentialhuge revenue win. Open Shopping Carts Program Qty 25,000 Open rate 60% Opens 15,000 Click to Open 40% Clicks 6,000 Potential RR 15% Orders 900 AOV $215 Potential Sales $193,500 Sales/Email $7.72
Demonstrate the ROIExpecting ROI Positive in year 1! Q3/Q4 2008 2009 2010Sales Triggered Emails $500,000 $750,000 $1,000,000Cost $50,000 $55,000 $55,000(ESP, Analytics Integration, etc.)Sales/Spend $10 $14 $18
2. What kind of conversion rates and revenue can I expect?
Following up with abandoners by email yieldsup to 50% conversion.
DEMCO: Cart vs Broadcast Emails High % of sales relative to volume Relative Volume Relative Sales Abandon Cart Abandon Cart Emails Emails 0.3% 18.6% Promotional Emails Promotional 99.7% Emails 81.4%
DEMCO ResultsConversion rate is just as high on the first email as it is on the last email– without an offer Cart Email A Cart Email B Cart Email C Day 1 Day 3 Day 5 AVERAGEOpen Rate 40% 39% 32% 37%Click-to-Open 44% 47% 28% 41%Click-thru-Rate 18% 18% 9% 15%Conversion Rate 22% 15% 24% 20%Sales/email $8.60 $8.40 $5.04 $7.46
Data and Integration
3. Where do we get the email addresses from?
2 sources for email addresses Launch promotional email Web visitors System: Silverpop (from search, bookmarks, etc.) Go to demco.com Go to demco.com System: Adobe Sign in & save cart (Genesis) Data feeds: Data feeds: • Abandoned cart date • Abandoned cart date • Product purchase date • Shopping cart URL • Product IDs (business system) • Shopping cart URL (business system) Launch abandoned Launch abandoned cart email cart email System: Silverpop System: Silverpop
4. How do I get the data between my ESP and Adobe Site Catalyst?
Genesis Integration with your ESP Makes it Easy! Genesis Email Partners No need to add code to your web pages to launch an integration!
5. How long will it take from setup to launch?
DEMCO: 4 months start to finish IT programming - Changes to cookie, cart ID in URL, carts from signing in Start w/new ESP Creative development ESP & Adobe Create triggered Genesis integration rules & testing25 25
Timing and Number of Emails
6. When should the first cart recovery email be sent?
Timing Factors1. Within 1-2 hours, but 24 at latest2. 23 hours3. 3-5 days, 1 week• Factors/Issues: • Product type (e.g., travel) • Feed timing • Did they purchase after abandoning?
7. How many cart recovery emails should we send?
How many emails should you send? At least 1 2 is better 3 is even better 4 or more – may be too many, but test it
Message A – 1 day after
Message B – 3 days after
Message C – 5 days after
Creative – Design, Content, andIncentives
8. Should we use incentives?
Use Promotions, but with care • Promotions will generate lift, and incremental profit • Best practice is to promote on the last of your sequence Conversion Cumulative • Capture maximum margin per stage conversion • Avoid training the customer to expect a promotionStage Conversion Open Rate Revenue / email1: Real time 22% 70% $112: 24 hours 7% 65% $4 Lift3: 7 days 6% 60% $3 1 2 3Total 35% Average 65% Average $6 Unsubscribe rate Source: SeeWhy
Simple – Save 15%
9. Should we include product photos, pricing, reviews and recommendations?
25% conversion on cart abandoners. Cart program account for almost 1/3 of TOTAL yearly email salesPrice First and most effective in the series sent within hours after abandonment.
Product Inclusion – No price…yet Next step add in price and average reviewsThe results:• 38.5% open rate• 10.15% CTR• 50% conversion rate• $4.80 revenue/email Next step add in price and average reviews
10. What kind of design/layout approach should we use?
Clean / Multiple “reminders”
11. What kind of tone and style of copy should we use?
• Service tone• Human• Multiplechannel options• Reassurance• 50%conversion
12. What are subject line best practices and examples?
Sample From Names/Subject Lines From Name Subject Line Soft Surrounding Good News! Your Shopping Bag is Still Available Simple Shoes Want to get free shipping on your next order on simpleshoes.com? Fabric.com Dont Go Yet! Come Back to Your Shopping Cart & Save! Exclusively.In Hurry! You Have Items In Your Cart, Get Them Before Theyre Gone. Hurry! You Have Items In Your Cart, Get Them Before Theyre Gone & Get Exclusively.In Free Shipping Until The 15th Of Dec. Cuddledown Items in your shopping cart are still available for purchase CircuitCity.com You Left Something at CircuitCity.com… Advance Auto Parts How can we help you with your purchase? Yankee Candle Company Is it something we said… TigerDirect.com You Left Something at Tiger… Smarthome Youve left items in your cart! Smarthome You still have items in your cart! Smarthome Your cart is gathering dust! Smarthome Only 24 hours left to use your cart! Smarthome Your cart items are getting lonely! SmartPak Canine A reminder from SmartPak Canine SmartPak Equine Did you forget something? Soft Surroundings Good News! Your Shopping Bag is Still Available Spalook.com Forget Something From Your Bag? DEMCO.com Courtesy Reminder DEMCO.com Important Notice DEMCO.com Special Offer for You
Subject line considerations/best practices Be helpful Include incentives when applicable Be positive Don’t make them guess Create a sense of urgency Test, test and test
Summary / Takeaways… Just get started – don’t try to boil the ocean Series, better than single email Test timing, but early can be key Use incentives carefully, later in series Take a helpful, human approach with content/copy Test and optimize over time
13. Your questions here____________________________________________________ ________________?
Top 5: Why visitors abandon shopping carts #1 Price #2 Not ready to buyPotential solutions:1. Tune the shopping cart process2. RemarketNone of the top 5 reasons for abandonment can be addressed by tuning theconversion process Source: SeeWhy
15. How big is the challenge / opportunity?
87% of consumers abandon carts…75% say they will return to complete the purchase. Source: Amaze/University of Glasgow
Abandoned Carts, Lost RevenueUp to 70% of Shopping Carts are Abandoned before Checkout ―60–70%‖ — Multiple Sources 57
Cart Abandonment: 1-step from revenue Sent Delivered Opened Clicked Product Views Cart Additions Checkouts Orders Revenue Units
16. Are we the only company NOT deploying cart recovery emails?
Do you deploy cart recovery emails?Still quite a few who have not deployed this email remarketing technique.
17. What are the typical costs involved in setting up a cart recovery program?
Costs - $ and resources Email service provider - startup Integration costs between ESP & Adobe Site Catalyst Email design Promotional cost (margins) Programming – data feeds Set-up of triggered campaigns
18. Are there things other than abandonment that we can trigger a cart email off of?
What about gaming the system? It isn’t a big issue You can suppress gamers Most marketers will take the revenue regardless
20. What are some of thebusiness rules and exceptions we need to be aware of?
Sample Rules and Lessons learned… Price minimum Suppress frequent abandoners Suppress after purchase Other abandons, not just via email Add an opt-out flag for abandoned carts only Don’t say “we’re going to empty your cart!”
21. What kind of reports can I see for cart recovery in SiteCatalyst?
Integrated Email Data Looks Like ThisEmail campaign data from partner With site conversion data from SiteCatalyst• Campaign Attributes Revenue• Opens Orders• Bounces• Click-through Conversion Rate Average Order Value, etc. Email Campaign Site Conversion Metrics Metrics