As business owners, we increasingly find ourselves struggling to stand out from the crowd. We invest in the right mix of ingredients to create the perfect cheese fondue for all our customers to enjoy only for them to abandon their online shopping cart at the last moment, leaving the fondue to spoil.
All that marketing effort to drive customers to our ecommerce website goes to waste if it doesn’t convert into sales. According to the Baymard Institute feelings of abandonment is a shared pain for most business owners with an average of 69.89% of online carts being abandoned. This means a lot of your marketing budget is going to waste, even though you may be successfully attracting the right clientele for your business.
The first question which springs to mind is WHY are so many customers loading up their carts only to disappear into the ether?
The age of Webrooming
Webrooming is the consumer practice of researching for product information online including features, price and ratings before purchasing them in a physical store.
- – Allows customers to compare prices especially the comparison between online and physical stores.
- – Allows customers to research the features of the product and compare against competitor options to find the right product for their needs.
- – Allows for easier returns and warranty claims.
- – Try before you buy.
- – No shipping cost.
- – Instant gratification.
The age of Choice
- In the era of constant connectivity, we are devoted to our smartphones, computers and tablets like never before. In theory, this is great news for ecommerce websites however on the flipside, customers have access to an unprecedented plethora of entertainment, information overload and excess choice.
- This can lead to choice paralysis as potential customers become overwhelmed by the sheer volume of product information and options available. When they finally overcome ‘analysis paralysis’ and finally make a decision they often feel regret.
Houston we have a problem
- Sometimes the problem can be as simply as a website crash or website time out which can stop a customer from completing a purchase. In fact, Statista reported 24% abandoning a purchase because the website crashed.
Website User Experience Design
- Before even looking into a cart checkout abandonment email strategy, it would be wise to review your purchasing funnel to analyse at which step in the journey customers are dropping off. As they say the best cure is prevention!
we use a program called Hot Jar to track customers mouse movements, analyse conversion funnels and understand how users interact with your website with heat maps. This allows you to understand potential problem areas in your customer purchase journey. For Instance a survey conducted by Statistia found that 56% of shoppers left without paying after being presented with an unexpected cost ie shipping costs, service fees or GST.
How does an abandoned cart email strategy fit into this? It should be noted that combating the challenges described above is part of a wider digital marketing strategy. With that out of the way, wouldn’t it be great to have the opportunity to talk with these lost customers and potentially change their mind?
your checkout abandonment email, reminding customers of the basket of goodies they left behind in a sheer panic of choices! You can expect to save between 5% and 11% of otherwise lost sales just by sending at least one follow up campaign within 24 hours.
Not bad when you consider
that these campaigns can largely be left alone once you have set them up and conducted a few rounds of tests to determine the number, frequency, timing and whether to include an offer or not.
Speaking of which
to discount or not to discount is a reasonable question to ask. There is a legitimate concern of potential customers abandoning carts intentionally in order to receive a discount. However this must be balanced with the legitimate instances in which surprise shipping costs or GST may have been the tipping point between purchasing and not purchasing. Always use a discount you are comfortable with so as to limit the effect potential system abuses might have on your margins.
An abandoned cart we recently set up for our client Screaming Reels. We used a combination of humour and a 10% discount sent 6 hours after the cart was dropped.
So far the results have been fantastic with a 55% open rate and a stellar 22% recovery rate! Obviously as the number of emails sent over time increases we expect these numbers to come back down to earth a little but needless to say this campaign has already paid for itself!
In conclusion, while the challenges facing online shops today demand a comprehensive strategy, adding a checkout abandonment email is a step in the right direction.