The Science of Shopping Cart Abandonment

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Why do visitors abandon shopping carts? What are their motivations? What can we learn by segmenting abandoners based on behavior? How can email remarketing work to recover abandoned shopping carts? Drawing on new primary research which gives fascinating new insights into online buyer motivations, this presentation suggests practical techniques that can be applied to prevent abandonment and recover abandoned shopping carts.

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The Science of Shopping Cart Abandonment

  1. 1. The Science Of ShoppingCart AbandonmentCharles Nicholls@webconversion
  2. 2. About Charles Nicholls Chairman, Conversion Academy Founder, SeeWhy Chief Research & Strategy Officer @webconversionAbout SeeWhy• The real time shopping cart recovery service • Best practices education • Primary research in ecommerce@SeeWhyInc
  3. 3. Why Visitors Abandon
  4. 4. A single track view of conversion Conversion is a numbers game: Get lots of traffic Get enough to convert Right? 5
  5. 5. The problem with one track conversion thinkingLess than 1% of newvisitors will go straight tobuy More than 99% fall off your single track 6
  6. 6. Common Perception Abandonment = Bad?About our research Research study in August 2011 More than 600,000 individual visitors More than 250,000 transactions
  7. 7. The multiple paths to conversion Abandonment is part of the purchase journey What do you do to nurture fragile new leads & first time customers? 8
  8. 8. Why 71% of shoppers say they abandon Source: Forrester #1 Price #2 Not ready to buyMales: Females: • More likely to save products for laterMore likely to compare prices • Take longer to buyLess likely to abandon • Even more sensitive to shipping and handling costs Design remarketing campaigns to address Price and Takeout Timing objections
  9. 9. Top converting traffic sources• Based on traffic arriving at the shopping cart Source: SeeWhy Source: SeeWhy n=63,507 n=63,507Takeout Develop strategies to capture more email addresses Google: ‘top traffic seewhy’ or http://seewhy.com/blog/2011/05/18/website-traffic-source-analysis/
  10. 10. Abandon Behavioral Patterns Abandonment pattern within 28 daysRecovery rate ofabandoned shopping Recoverycarts is very different Rate 57%based on behavioral Recoverysegments Rate 18%Average abandons perpurchase is 1.3, rising to2.2 following a recent Avg. 2.4 in 28 dayspurchase Recovery Rate 48% Source: SeeWhy n=179,907 Takeout Abandoning can be part of the purchase cycle
  11. 11. Impact of Cart Size Abandonment Rate by Cart ValueDetail on $1 – $200 Carts Check shipping costs for Takeout low value carts Offer free shipping at $99 Source: SeeWhy 8-11 $1-$100 $101-$250 $250-$300 $300-$250 $350-$400 $400+
  12. 12. Average Time from First Visit to PurchaseThose who dont buy initially: Average time delay between first visit and purchase is 19 hours But 72% will buy in the first 12 hours Start remarketing asTakeout soon as they abandon – the first 12 hours are the greatest opportunity Source: SeeWhy and ScanAlert
  13. 13. The Impact of remarketing No Remarketing With RemarketingNumber of abandoners returning On average, an On average additional 8% will return to buy 26% 18% additional recovery will return to buy when remarketed Takeout 2x - 3x more abandoners will buy when remarketed Remarketings biggest impact will be in the first 12 hours.
  14. 14. What You Can Do About It
  15. 15. Remarketing in Action On average 72% Individual Adds item(s) ...and abandons website visitor to their cart... without purchasing will abandon Follow up immediately with a 1-to-1 email campaignVisitor clicksthrough the email 1 2 3 Real time API Re-considers On average the purchase 26% Of identified abandoners will convert
  16. 16. Guthy Renker Proactiv Campaign Immediate 23 hrs after 6 days, 23 hours after
  17. 17. Typical ‘Starter’ Campaign Remind Reassure Promote Immediate 23 hours 6 days & 23 hoursSubject line: Subject line: Subject line:‘Oops! Was there a problem with your ‘Free exchanges on your order at ‘Save 25% on your order atcart?’ LuckyVitamin’ LuckyVitamin’
  18. 18. Heatmap predicts where the eye scans
  19. 19. Best practice example: NordicTrack 1. Relevance  Timing  Based on their web session 2. Value  Service  Link back to the cart  Contact numbers etc 3. Call to action  Clear  Value based
  20. 20. Make it personal: Relevance = ROI Product Detail Page Remarketing EmailVisual connection to the websiteDetails of the product abandonedStay focused: Dont distract the abandoner
  21. 21. Columbia Sportswear Focus on the product  Large image  Product name  Review stars Free shipping call to action (with club membership)
  22. 22. Enhances brand relationship Strong focus on 1-to-1 service Personal shopper offer Image of the item abandoned Prominent call to action Minimum cart value of $150 to qualify
  23. 23. Any observations?
  24. 24. Impact of skin tones and faces http://usableworld.com.au/2009/03/16/you-look-where-they-look/
  25. 25. CSR image is too strong Distracts from the primary call to action Call to action button not strong enough
  26. 26. Alternate Route – No CSR
  27. 27. The impact of highly personalized content Test of a 3 step email remarketing campaign, measuring lift in revenue recovered: 2.6% 33.2%
  28. 28. A/B test comparing Batch to Real timeBatch: Single email at +24hours 105% moreReal time: revenue Single email sent immediatelyReal time gives:+30%Recovered Carts +105% Revenue+66% AOV
  29. 29. A/B test: Real time + Multi StageReal time tracking enables: Multiple campaign steps (total 3 in this test) Impact of Step 2 andReal time + multi stage gives: 3 +201% Revenue 412% ROI
  30. 30. Pitfalls to watch out forStaying in step Synchronize remarketing with customer activity Batch transfers of data get out of stepPromotions Use promotions on the last of a sequence Use behavioural targeting to focus promotions on those unlikely to buy anywayOptimize Remarketing is part of your conversion path Don’t ‘set and forget’
  31. 31. Q&A
  32. 32. You’ve heard the story...now read the book30 pages of insight into online buyerbehaviorTips and techniques to driveconversionsRequest a copy by emailing us atInfo@seewhy.comCharles Nichollscharles.nicholls@seewhy.com@webconversion

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