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Abandoned cart follow-up strategy best practice & recommendations


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This document outlines our findings on best practice abandoned cart follow-up strategy & communications.

Published in: Technology, Business

Abandoned cart follow-up strategy best practice & recommendations

  1. 1. Abandoned cart follow-up strategybest practice & recommendationsMonday, 19th March 2012
  2. 2. Abandoned Cart: did you know…•  87% of consumers abandon carts•  75% say they will return to complete the purchase•  54% of cart abandoners who intend to buy will do so in the first 24 hours Source:  Amaze/University  Glasgow  2010  2
  3. 3. What you will find in this document•  This document outlines our findings on best practice abandoned cart follow-up strategy & communications.•  It also outlines some of our recommendations about how these best practices can be implemented & be included in eCommerce communications strategy.•  It covers: 1.  Abandoned cart follow-up: best practice 2.  Abandoned cart follow-up: Australian & overseas e-retailer examples 3.  Abandoned cart follow-up: who does it well examples 4.  Abandoned cart follow-up: recommendations for eCommerce sites & stores.3
  4. 4. 1. Best practice: Key recommendationsTime to send, incentives & post conversions rules
  5. 5. Key recommendations: OverviewThe top five recommendations on the abandonedcart follow up strategy include:1.  Reminder: best time to send emails2.  Win back: how to incentivise3.  Email content: key messages4.  Sign in: what details to capture5.  Post conversion considerations
  6. 6. 1. Reminder: best time to sendSTATS:•  54% of cart abandoners who intend to buy will do so in the first 24 hours•  Another 10% will buy within 48 hours•  82% of people who intend to buy, will do so within a weekSOLUTION:•  The longer you wait to re-engage an abandoner, the less likely they will be able to recall the reasons for shopping. Re-engage no later than 24 hours after the abandonment process•  Send the first email within the first two (2) hours of cart abandonment•  Send the second within 24 hours•  Test the timings: Movies Unlimited, for example, sent emails 1 hour, 6 hours & 24 hours. The 1 hour email generated a higher response, but the highest conversion came from the email send 6 hours after the abandonment process Source: Market Live 2012; Inbound Internet Marketing Blog 2011 6
  7. 7. 2. Win back: how to incentiviseSTATS:•  Only 16% of retailers with abandoned cart programs offered a discount, free shipping or sales incentive to lure back customers•  11% of cart abandoners found the check out process confusing•  24% place items in cart to consider later, 41% weren’t ready to purchaseSOLUTION:•  Don’t always default to discount because the primary reason for abandoning cart is not always price•  If you do offer an incentive, set up rules so customers only receive once or potentially offer every nth customer an incentive to prevent training customers to expect discounts•  Tell the service centre about the discount incase a technical difficulty lead to the customer completing the purchase over the phone Source: Market Live 2012; Inbound Internet Marketing Blog 2011; Chief Marketer 20117
  8. 8. 3. Email content: key messagesCONSIDERATIONS:•  Include copy such as "did you have a problem at checkout" or "need help" to position email as a value add rather than a sales pitch•  Include a link to the abandoned cart & refer to items in the message•  Include images or related products for cross selling & upselling, just incase the model has sold out or customer was not sold on the original item•  Create a sense of urgency & include an expiration date for the cart•  Include other ways to complete the purchase or seek help, such as telephone numbers or email help•  If free shipping is normally offered, highlight this in the messaging in case the shopper missed the offer•  Add value to the follow-up emails by including ratings, reviews & an alternative way to contact customer service Source: Chief Marketer 20118
  9. 9. 4. Sign in: what information to capture•  At the first step ask for an email address•  State the purpose for collection is to contact shoppers if there is a question about their order Walmart Example9
  10. 10. Rules to consider•  Once purchase is completed make sure the customer is removed from the automatic email system.•  If the customer does not purchase after a certain timeframe, set rules to remove the customer from the abandoned cart program. Source: Chief Marketer 201110
  11. 11. Australian & overseas e-retailer examples
  12. 12. Who does a good job?•  Not a lot of Australian e-retailers are doing a good job with abandoned cart follow up. Most of them do not do it at all or even cookie the site to allow ease of conversion for return visitors.•  There is a big opportunity is to implement a test & learn campaign, analyse results & design an abandoned cart email program as a part of a communications plan.•  We placed items in carts & abandoned them on 29th February 2012. All eCommerce retailers who had our email address did not send a follow-up email.•  Retailers were revisited on 16th March 2012 to see if cookies had captured cart & purchase information.•  This review looks at the eCommerce process for: 1.  Nikon ( 2.  Dick Smith* ( 3.  Apple (|GOAU&cid=AOS-AP-AU-GOOGLE) 4.  Mac Cosmetics* ( ) 5.  Movies Unlimited* ( 6.  Amazon (•  * When re-visiting this retailer, we proceeded further through the checkout process before 12 abandoning again.
  13. 13. Nikon: Purchase Process Step 1: Clicked on account. Step  1  Step 2: Abandoned cart at this screenwithout filling in details. Too much tofill in up –front. Step  2  Step 3: Returned on 16 March & didnot find item in the cart.13
  14. 14. Dick Smith: Purchase Process Step  1   Step 1: Completed email details (email captured first).Step 2: Abandoned cart at 9:55am. DickSmith have my email details. No followup. Step  2  Step 3: Returned 16 March & did not finditem in the cart.14
  15. 15. Apple: Purchase Process Step 1: Select product & proceed to Step  1   checkout. Step  2  Step 2: Abandoned cart at thisscreen without filling in details.Form too long.Step 3: Returned on 16 March & didnot find item in the cart.15
  16. 16. Mac Cosmetics: Purchase Process Step 1: Enter email address only. Step  1  Step 2: Asked for further information,but cart abandoned at 11:30am. Now Step  2  have email details. No follow-upemail.Step 3: Returned 16 March & founditem still in cart, but did not rememberemail address. No follow-up emailsent.16
  17. 17. Movies Purchase Process Step  1   Step 1: Asked for email address. Clear checkout process & steps.Step 2: Asked for details & provided Step  2  shipping costs upfront.Abandoned cart at 12:45pm. The storehave email details. No follow up.Step 3: Returned 16 March & founditems in the cart. Email address wasalso remembered. Proceeded furtherthrough the check-out process. Nofollow-up email sent.17
  18. 18. Amazon: Purchase Process Step 1: Collected email Step  1  Step 2: Technical problems with cart so Step  2  abandoned at 10am. Amazon now haveemail details. No follow up email.Step 3: Returned on 16 March. Item still incart. Did not retain email address & haddifficulty with the cart, so abandoned itwithout proceeding further.18
  19. 19. Who does it well? ExamplesExamples of how industry leaders follow up on Abandoned Carts
  20. 20. Fossil: Example of the Follow up email 1   1.  Links to other2   products incase 2   looking for something else 3   2.  Statement to show care & service 3.  Imposed time limit to create urgency, but to not rush the customer 4.  Link to shopping bag y: Opp ortunit t Produc in details20 cart.
  21. 21. Sears: Example of a Follow up email 1.  Express concern for the 1   customer about the shopping experience 2   2.  Link to shopping cart 3.  Additional ways to contact the store 3  21
  22. 22. 2   1   Shopbop: Example of follow-up email 1.  Link to shopping cart (twice) 2.  Reiterating free 3   shipping offer 1   (thrice) 3.  Statement to encourage2   urgency 2   22
  23. 23. How can eCommerce leverage this?Top five recommendations
  24. 24. eCommerce: recommendations1.  Trigger emails: •  Design an abandoned cart program that includes a series of trigger emails designed to re-engage the customer.2.  Email collection upfront: •  Modify current process to capture only email information up front. Second step is to capture more detailed information such as address.3.  Service & care: •  Refrain from using discount offers, instead focus on customer service & care.24
  25. 25. eStore: Deliverables4.  Program: •  Design & build abandoned cart program o  2 hours – Key message - Technical problems at the check out? o  1 day – Key message - Service focused o  5 days – Key message - Made a decision? o  2 weeks – Key message – Information offer. 5.  Contact rules: •  Rules to stop trigger emails once purchase is made or cart is emptied.25
  26. 26. References 26
  27. 27. Thank youWiTH | | | 02 8203 2128