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Shopping Cart Abandonment
Practices of the Internet Retailer
1000 Companies
by Megan Ouellet, Director of Marketing, Listrak
October 12, 2011


Shopping cart abandonment rates are on the rise. The average abandonment
rate jumped from 71% to 75% during the first six months of 2011. Why?
More consumers are using online carts to compare prices before making a
purchasing decision, both on their computers and smartphones. For others,
carts are abandoned due to high or unexpected shipping costs, simple
interruptions, etc. While some customers do return to complete the purchase,
many more remained lost.

We keep our finger on the pulse of the eCommerce industry through frequent
longitudinal studies and industry quick polls. Our latest research study was
on the shopping cart abandonment habits of the Top 1000 Internet Retailers,
as identified by the Top 500 and IR Second 500. This whitepaper contains the
results of that study along with recommendations.


Methodology

This is our third shopping cart abandonment study. It differs than the first two
in that we not only shopped and abandoned Internet Retailer Top 500 sites
but the Second 500 as well. The methodology was the same – we shopped
97.3% of the top 1000 sites (97.2% from the Top 500 and 97.4% from the
Second 500), excluding sites where a military ID or exclusive membership
was required and sites that were no longer functioning.

During the checkout process we noted where each company is requesting
the shoppers’ email addresses and whether or not the payment information
is on the same page. Items were added to carts, the checkout process was
started, and the carts were then abandoned before completing the purchase.
The same information was added to each checkout page – first and last
name, email address, mailing address, and phone number. We then tracked
the cart abandonment campaigns received, noting the time, personalization,
dynamic merchandising, offers, and number of emails if a series was sent.
Below are the detailed results.
Part 1 – Number of Messages

How many online retailers are recovering revenue with shopping                                  IR 1000
cart abandonment email campaigns?

14.6% of the IR-1000 companies sent at least one message - 18.7% of the
Top 500, which is a 42% increase from our last study released in January
2011, and 10.7% from the second 500.

The increase in the Top 500 is a sign of the times as more and more retailers
                                                                                           14.6%
are implementing shopping cart abandonment strategies. We’re happy to
see the increase, but we’re still surprised to find that less than 20% of the top


                                                                                      18.5% 10.7%
1000 eCommerce sites have implemented a solution at this point. Another
interesting note is that the mid-sized internet retailers (501-1000) are closely
keeping up with the Top 500 with cart abandonment campaigns; an indication
that this strategy is feasible and not just for the “big boys”.
                                                                                      Top 500         Second 500


How many emails are online retailers sending?

An astounding 77.5% of all shopping cart abandonment campaigns received
were single messages – 80% of the Top 500 and 75% of the Second 500. And
15.8% - 16.7% from the Top 500 and 15% from the Second 500 – sent two
emails. However, 10% of the Second 500 and only 3.3% of the Top 500 sent
the all-important third message.

Our recommendations:
Think three reminders are too many? Think again. Sending a third message
takes little time, money, or resources and we’ve seen them convert at nearly
the same rate as the second message of the series. You’ll simply make more
money.

                       Number of messages sent


                            6.7%                                  80%          3.3%



             15.8%
                                            TOP 500
                                                                         16.7%


77.5%                                                           75%           10%

                                            SECOND 500
     1            2            3
                                                                        15%
  IR 1000
Part 2 – Timing of Messages

What is the timing of the messages?

Message 1:                                                                     Message 3:
Arguably the most influential factor of shopping cart abandonment campaigns,   The third message had an even
the timing of the messages differed greatly between the Top 500 and Second     greater discrepancy. Only 33.3% of
500. Only 51.1% of the Top 500 sent the first remarketing campaign within 24   the Top 500 sent the third message
hours of the abandonment whereas 73.1% of the Second 500 reached out in        within 72 hours of the second
that time frame. In fact, 40.4% of the messages were received within an hour   message while 60% of the Second
of the abandonment, compared to only 14.4% of the Top 500.                     500 reached back within three days.



      14.4%                  1 HOUR                    40.4%         1 HOUR     0%                               1 HOUR


               36.7%      2-24 HOURS                 32.7%        2-24 HOURS    0%                           2-24 HOURS


        20%              25-48 HOURS         11.5%               25-48 HOURS    0%                           25-48 HOURS


   8.9%                  49-72 HOURS     1.9%                    49-72 HOURS          33.3%                  49-72 HOURS


      14.4%            OVER 72 HOURS         13.5%             OVER 72 HOURS    OVER 72 HOURS                66.7%


Message 2:                                                                             20%                       1 HOUR
The second message produced similar results. Only 38.9% of the Top 500
sent the second message within 24 hours of the first whereas 46.1% of the
Second 500 sent within that time frame. The biggest discrepancy between
                                                                                0%                           2-24 HOURS

the two groups was the 25-48 hour period, where the Top 500 sent 27.7% of
messages in this period compared to only 7.8% of the Second 500.                       20%                   25-48 HOURS


                                                                                       20%                   49-72 HOURS
   5.5%                      1 HOUR           15.4%                  1 HOUR

                                                                                                 40%    OVER 72 HOURS
              33.4%       2-24 HOURS                 30.7%        2-24 HOURS

                                                                                 top 500        second 500
          22.7%          25-48 HOURS       7.8%                  25-48 HOURS


       16.7%             49-72 HOURS                 30.7%       49-72 HOURS


       16.7%           OVER 72 HOURS          15.4%            OVER 72 HOURS
Our recommendations:
Always test to find what works best for your audience, but we recommend sending the first message within three hours
(or even one hour) of the abandonment so you reach customers while they’re still contemplating the purchase. We’ve
found that emails sent within one hour of abandonment have the highest open and click rates but emails sent three
hours after the abandonment have the highest Average Order Values. We’ve also seen retailers double their campaign
ROI simply by moving the first message deployment from 24 hours to three hours after the abandonment. The second
message should be sent 24-48 hours later and the third message 48-72 hours after that. That way, you’ll reach out three
times within six days. Waiting too long gives customers the opportunity to purchase the items elsewhere.


What is the cadence of the messages?

Email cadence refers to the deployment pattern of a series of messages. It is just another way of looking at the
information supplied above.

Below is the cadence for the Top 500:


             MESSAGE 1                               MESSAGE 2                                MESSAGE 3


      14.4%                  1 HOUR         5.5%                       1 HOUR      0%                           1 HOUR


              36.7%       2-24 HOURS                  33.4%        2-24 HOURS      0%                        2-24 HOURS


        20%              25-48 HOURS                22.7%         25-48 HOURS      0%                       25-48 HOURS


   8.9%                  49-72 HOURS            16.7%             49-72 HOURS             33.3%             49-72 HOURS


      14.4%            OVER 72 HOURS            16.7%           OVER 72 HOURS       OVER 72 HOURS           66.7%

Below is the cadence for the Second 500:

             MESSAGE 1                               MESSAGE 2                                MESSAGE 3


               40.4%         1 HOUR            15.4%                  1 HOUR               20%                  1 HOUR


             32.7%        2-24 HOURS                  30.7%        2-24 HOURS      0%                        2-24 HOURS


     11.5%               25-48 HOURS         7.8%                 25-48 HOURS              20%              25-48 HOURS


 1.9%                    49-72 HOURS                  30.7%       49-72 HOURS              20%              49-72 HOURS


      13.5%            OVER 72 HOURS           15.4%            OVER 72 HOURS                       40%   OVER 72 HOURS
Part 3 – Content and Messaging                                                   MESSAGE ONE OVERALL OFFERS


Are online retailers relying on discounts in their shopping cart
abandonment campaigns?                                                                               8.2%

Some online retailers are reluctant to include an offer in their shopping cart
                                                                                      27%                   16.2%
abandonment campaigns because they’re worried that they’ll be training
customers to abandon carts and wait for the discounts. Including special
offers in your shopping cart abandonment campaigns can work to your
advantage if you take a strategic approach; but it can also decrease your
profit margin if you aren’t careful.
                                                                                            48.6%
Offers in Message 1: 41% of the Top 500 offered a discount in the first
message compared to 56% of the Second 500.
                                                                                     top 500                $ amount
                                                                                     free shipping          % off
       IR 1000                    Top 500                  Second 500


                                                                                            33.3%               $5 OFF


       46%                        41%                         56%                                    50%       $10 OFF


                                                                                     16.7%                     $20 OFF

Types of Offers in Message 1: 14 companies offered free shipping in the
first message, 40 offered a percentage off, seven offered a dollar amount off,
and five had a miscellaneous offer, such as 50% off a second item or $5 flat
                                                                                                      55.5%     5% OFF

rate shipping. 76 didn’t include an offer or discount. message.
                                                                                          27.8%                10% OFF


Offers in Message 2: 56% of the Top 500 offered a discount in message                16.7%                     15% OFF
two, a 36.5% increase over message one. 69% of the Second 500 offered
discounts in the second message, a 23% increase over the first message.

       IR 1000                    Top 500                   Second 500




       61%                        56%                        69%
Types of Offers in Message 2: This chart shows actual offers across the first   Offers in Message 3: 33.3% of the
two messages. Only 19 of the second messages received included an offer:        Top 500 and 80% of the Second
                                                                                500 offered a discount in the third
             MESSAGE 1                               MESSAGE 2                  message.

  Free Shipping                           Free Shipping
                                                                                              IR 1000
  Free Shipping                           Free Shipping

  Free Shipping                           5% off

  Free Shipping

  5% off
                                          Free Shipping

                                          Free Shipping                                     62.5%
  5% off                                  5% off

  5% off                                  10% off
                                                                                              Top 500
  No offer                                5% off

  No offer                                5% off



                                                                                            33.3%
  No offer                                10% off

  No offer                                10% off

  10% off                                 10% off

  10% off                                 No offer

  10% off                                 20% off                                           Second 500

  10% off                                 5% off

                                          5% off


                                                                                              80%
  10% off

  10% off                                 10% off

  No offer                                10% off

  $5 flat rate shipping                   $5 flat rate shipping

  50% off extra print                     50% off extra print



Types of Offers in Message 3: Only five of the third messages received included offers. This chart shows the actual
offers across those the three-message series:


             MESSAGE 1                               MESSAGE 2                              MESSAGE 3

  Free Shipping                           Free Shipping                           Free Shipping

  Free Shipping                           Free Shipping                           Free Shipping

  10% off                                 10% off                                 10% off

  No offer                                No offer                                10% off

  5% off                                  10% off                                 10% off
What’s interesting to note here is that the vast majority of third messages from the Top 500 do not have an offer, while
the reverse is true for the Second 500. And, in the first message, both groups were almost equally dispersed between
offer and no offer. If you’re willing to offer a discount in the first message, why not carry it across all three messages?

Our recommendations:
We recommend implementing a discount ladder to maximize your profitability. Many times an offer isn’t needed in the
first message as a simple reminder of the products in the cart is enough to prompt customers into action. However,
a nominal discount in the second message can help entice shoppers who are still considering the merchandise to
complete the purchase. And, for shoppers who still haven’t acted, a larger discount in the third message is typically
too tempting to pass up. A discount ladder allows you to apply the larger discounts only to customers who need them
so you’ll make more money on the transactions completed in your first two messages.



Are emails personalized with customers’ names?                                      Are emails personalized with
                                                                                    images of items left in cart?
Only 27.4% of the first messages received included the customer’s name in
the email copy even though 100% of them had access to the information from          Another surprise was that only 38.7%
the checkout page.                                                                  of the first emails received included
                                                                                    images of the merchandise left in the
        IR 1000                    Top 500                    Second 500
                                                                                    carts.




     27.4%                       26.6%                       28.8%
                                                                                              38.7%
Our recommendations:
Shopping cart abandonment messages are extremely personal messages, so
avoid lumping all of your valuable customers into the “Dear Valued Customer”        Our recommendations:
category. Calling your customers by name really helps personalize the
                                                                                    What is more tempting to a customer
interaction. If you have the information, use it.
                                                                                    than opening an email and seeing
                                                                                    the merchandise they want to buy?
                                                                                    In many cases, just seeing the items
                                                                                    again is enough to prompt customers
                                                                                    into completing the purchases, even
                                                                                    without a discount. Again, you have
                                                                                    the information so use it.
Part 4 – The Checkout Process

Where are online retailers capturing customers’ email addresses?

97.5% of the Top 1000 retailers that send remarketing campaigns capture customers’ email addresses on the first
page of checkout.


               IR 1000                                Top 500                              Second 500




    97.5%                2.5%                 97%                 3%                    98%             2%
                                               page one        page two


But that percentage drops slightly to 93% when looking at the Top 1000 retailers that do not send remarketing
campaigns.

               IR 1000                                Top 500                              Second 500

  93%                                   89%                                     96.3%




        5.3%                                   7.3%
                         2.8%                           2.8%                             3.4%   3%
                 1.4%           .1%                              .6%      .3%                        0%      0%


                                         1      2         3       4       5
Where are online retailers capturing payment information?

The biggest surprise of the study was found here. Of the online retailers that send remarketing campaigns, only 15.5%
of the Top 500 companies request payment information on the same page as the email address whereas 92.3% of the
Second 500 companies request the information on the same page.

               1-1000                                      1-500                                   501-1000




    56.4%               43.6%                  84.5% 15.5%                                   92.3%            7.7%
                                  same page as email address   different page than email address


Of the Top 1000 companies that do not send remarketing campaigns, the numbers are more closely aligned. 29.4%
of the Top 500 companies and 33.3% of the Second 500 request the information on the same page.


               1-1000                                      1-500                                   501-1000




    68.3%               31.7%                  70.6%               29.4%                      66.7%       33.3%
                                  same page as email address   different page than email address


Our recommendations:
Email addresses should be the first thing you ask for during the checkout process. After all, you can’t send a remarketing
campaign without one. The further in the process you request the information, the more chances customers have to
abandon the carts.


A Few Surprises

In addition to the expected email reach backs, we also received three follow up phone calls after the carts were
abandoned. All three calls were made within 1 ½ hours of the abandonment and all three were made by representatives
asking if we experienced technical problems during the online checkout process and offering to complete the sale for
us over the phone. Two of the three companies sent the first remarketing email message immediately after the phone
call, and the third sent the email four hours after the call.
We also received one direct marketing piece in the mail and; surprisingly, the company that sent the catalog did not
    send a follow up email.

    We were also surprised at the subject lines of the messages. We expected to see more subject lines announcing the
    offers, such as “You left products in your cart. Buy now and save $10.” But most of the subject lines were simple
    reminders, such as the few examples below:

       • Did you forget something?
       • Having trouble checking out?
       • Hurry, before it’s too late!
       • Thank you for your recent visit.
       • Where did you go?
       • Oops….Was there a problem checking out?
       • You left some items behind.
       • Ode to an abandoned cart.
       • Your purchase.


    Final Thoughts

    Shopping cart abandonment campaigns work. Once they are set up, they run in the background with little maintenance
    required. These campaigns are on an upward trend with a 42% increase in the Top 500 this year alone. If you don’t
    already have a solution, it’s time to implement one.

    In the next few weeks, we’ll release a look-book containing samplings of the emails received. The emails varied greatly
    – from simple text-based reminders to intricate dynamically-populated personalized messages.

    We’re here to answer all of your questions on shopping cart abandonment. Visit us at www.listrak.com to learn more.




    About Listrak

    Listrak is an email marketing firm providing the solutions, software, and expertise to optimize the value of email. Listrak
    works with clients like Birkenstock Central, Swell, Vintage Tub and Bath, Chiasso, and Active Ride Shop to develop
    engaging shopping cart abandonment remarketing campaigns that go beyond the inbox to the individual, to deliver
    the extra percent in effectiveness and ROI. Visit www.listrak.com to learn more.




877.362.4556 | www.listrak.com

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Shopping Cart Abandonment Practices of the Internet Retailer 1000 Companies (Listrak) - OCT11

  • 1. Shopping Cart Abandonment Practices of the Internet Retailer 1000 Companies by Megan Ouellet, Director of Marketing, Listrak October 12, 2011 Shopping cart abandonment rates are on the rise. The average abandonment rate jumped from 71% to 75% during the first six months of 2011. Why? More consumers are using online carts to compare prices before making a purchasing decision, both on their computers and smartphones. For others, carts are abandoned due to high or unexpected shipping costs, simple interruptions, etc. While some customers do return to complete the purchase, many more remained lost. We keep our finger on the pulse of the eCommerce industry through frequent longitudinal studies and industry quick polls. Our latest research study was on the shopping cart abandonment habits of the Top 1000 Internet Retailers, as identified by the Top 500 and IR Second 500. This whitepaper contains the results of that study along with recommendations. Methodology This is our third shopping cart abandonment study. It differs than the first two in that we not only shopped and abandoned Internet Retailer Top 500 sites but the Second 500 as well. The methodology was the same – we shopped 97.3% of the top 1000 sites (97.2% from the Top 500 and 97.4% from the Second 500), excluding sites where a military ID or exclusive membership was required and sites that were no longer functioning. During the checkout process we noted where each company is requesting the shoppers’ email addresses and whether or not the payment information is on the same page. Items were added to carts, the checkout process was started, and the carts were then abandoned before completing the purchase. The same information was added to each checkout page – first and last name, email address, mailing address, and phone number. We then tracked the cart abandonment campaigns received, noting the time, personalization, dynamic merchandising, offers, and number of emails if a series was sent. Below are the detailed results.
  • 2. Part 1 – Number of Messages How many online retailers are recovering revenue with shopping IR 1000 cart abandonment email campaigns? 14.6% of the IR-1000 companies sent at least one message - 18.7% of the Top 500, which is a 42% increase from our last study released in January 2011, and 10.7% from the second 500. The increase in the Top 500 is a sign of the times as more and more retailers 14.6% are implementing shopping cart abandonment strategies. We’re happy to see the increase, but we’re still surprised to find that less than 20% of the top 18.5% 10.7% 1000 eCommerce sites have implemented a solution at this point. Another interesting note is that the mid-sized internet retailers (501-1000) are closely keeping up with the Top 500 with cart abandonment campaigns; an indication that this strategy is feasible and not just for the “big boys”. Top 500 Second 500 How many emails are online retailers sending? An astounding 77.5% of all shopping cart abandonment campaigns received were single messages – 80% of the Top 500 and 75% of the Second 500. And 15.8% - 16.7% from the Top 500 and 15% from the Second 500 – sent two emails. However, 10% of the Second 500 and only 3.3% of the Top 500 sent the all-important third message. Our recommendations: Think three reminders are too many? Think again. Sending a third message takes little time, money, or resources and we’ve seen them convert at nearly the same rate as the second message of the series. You’ll simply make more money. Number of messages sent 6.7% 80% 3.3% 15.8% TOP 500 16.7% 77.5% 75% 10% SECOND 500 1 2 3 15% IR 1000
  • 3. Part 2 – Timing of Messages What is the timing of the messages? Message 1: Message 3: Arguably the most influential factor of shopping cart abandonment campaigns, The third message had an even the timing of the messages differed greatly between the Top 500 and Second greater discrepancy. Only 33.3% of 500. Only 51.1% of the Top 500 sent the first remarketing campaign within 24 the Top 500 sent the third message hours of the abandonment whereas 73.1% of the Second 500 reached out in within 72 hours of the second that time frame. In fact, 40.4% of the messages were received within an hour message while 60% of the Second of the abandonment, compared to only 14.4% of the Top 500. 500 reached back within three days. 14.4% 1 HOUR 40.4% 1 HOUR 0% 1 HOUR 36.7% 2-24 HOURS 32.7% 2-24 HOURS 0% 2-24 HOURS 20% 25-48 HOURS 11.5% 25-48 HOURS 0% 25-48 HOURS 8.9% 49-72 HOURS 1.9% 49-72 HOURS 33.3% 49-72 HOURS 14.4% OVER 72 HOURS 13.5% OVER 72 HOURS OVER 72 HOURS 66.7% Message 2: 20% 1 HOUR The second message produced similar results. Only 38.9% of the Top 500 sent the second message within 24 hours of the first whereas 46.1% of the Second 500 sent within that time frame. The biggest discrepancy between 0% 2-24 HOURS the two groups was the 25-48 hour period, where the Top 500 sent 27.7% of messages in this period compared to only 7.8% of the Second 500. 20% 25-48 HOURS 20% 49-72 HOURS 5.5% 1 HOUR 15.4% 1 HOUR 40% OVER 72 HOURS 33.4% 2-24 HOURS 30.7% 2-24 HOURS top 500 second 500 22.7% 25-48 HOURS 7.8% 25-48 HOURS 16.7% 49-72 HOURS 30.7% 49-72 HOURS 16.7% OVER 72 HOURS 15.4% OVER 72 HOURS
  • 4. Our recommendations: Always test to find what works best for your audience, but we recommend sending the first message within three hours (or even one hour) of the abandonment so you reach customers while they’re still contemplating the purchase. We’ve found that emails sent within one hour of abandonment have the highest open and click rates but emails sent three hours after the abandonment have the highest Average Order Values. We’ve also seen retailers double their campaign ROI simply by moving the first message deployment from 24 hours to three hours after the abandonment. The second message should be sent 24-48 hours later and the third message 48-72 hours after that. That way, you’ll reach out three times within six days. Waiting too long gives customers the opportunity to purchase the items elsewhere. What is the cadence of the messages? Email cadence refers to the deployment pattern of a series of messages. It is just another way of looking at the information supplied above. Below is the cadence for the Top 500: MESSAGE 1 MESSAGE 2 MESSAGE 3 14.4% 1 HOUR 5.5% 1 HOUR 0% 1 HOUR 36.7% 2-24 HOURS 33.4% 2-24 HOURS 0% 2-24 HOURS 20% 25-48 HOURS 22.7% 25-48 HOURS 0% 25-48 HOURS 8.9% 49-72 HOURS 16.7% 49-72 HOURS 33.3% 49-72 HOURS 14.4% OVER 72 HOURS 16.7% OVER 72 HOURS OVER 72 HOURS 66.7% Below is the cadence for the Second 500: MESSAGE 1 MESSAGE 2 MESSAGE 3 40.4% 1 HOUR 15.4% 1 HOUR 20% 1 HOUR 32.7% 2-24 HOURS 30.7% 2-24 HOURS 0% 2-24 HOURS 11.5% 25-48 HOURS 7.8% 25-48 HOURS 20% 25-48 HOURS 1.9% 49-72 HOURS 30.7% 49-72 HOURS 20% 49-72 HOURS 13.5% OVER 72 HOURS 15.4% OVER 72 HOURS 40% OVER 72 HOURS
  • 5. Part 3 – Content and Messaging MESSAGE ONE OVERALL OFFERS Are online retailers relying on discounts in their shopping cart abandonment campaigns? 8.2% Some online retailers are reluctant to include an offer in their shopping cart 27% 16.2% abandonment campaigns because they’re worried that they’ll be training customers to abandon carts and wait for the discounts. Including special offers in your shopping cart abandonment campaigns can work to your advantage if you take a strategic approach; but it can also decrease your profit margin if you aren’t careful. 48.6% Offers in Message 1: 41% of the Top 500 offered a discount in the first message compared to 56% of the Second 500. top 500 $ amount free shipping % off IR 1000 Top 500 Second 500 33.3% $5 OFF 46% 41% 56% 50% $10 OFF 16.7% $20 OFF Types of Offers in Message 1: 14 companies offered free shipping in the first message, 40 offered a percentage off, seven offered a dollar amount off, and five had a miscellaneous offer, such as 50% off a second item or $5 flat 55.5% 5% OFF rate shipping. 76 didn’t include an offer or discount. message. 27.8% 10% OFF Offers in Message 2: 56% of the Top 500 offered a discount in message 16.7% 15% OFF two, a 36.5% increase over message one. 69% of the Second 500 offered discounts in the second message, a 23% increase over the first message. IR 1000 Top 500 Second 500 61% 56% 69%
  • 6. Types of Offers in Message 2: This chart shows actual offers across the first Offers in Message 3: 33.3% of the two messages. Only 19 of the second messages received included an offer: Top 500 and 80% of the Second 500 offered a discount in the third MESSAGE 1 MESSAGE 2 message. Free Shipping Free Shipping IR 1000 Free Shipping Free Shipping Free Shipping 5% off Free Shipping 5% off Free Shipping Free Shipping 62.5% 5% off 5% off 5% off 10% off Top 500 No offer 5% off No offer 5% off 33.3% No offer 10% off No offer 10% off 10% off 10% off 10% off No offer 10% off 20% off Second 500 10% off 5% off 5% off 80% 10% off 10% off 10% off No offer 10% off $5 flat rate shipping $5 flat rate shipping 50% off extra print 50% off extra print Types of Offers in Message 3: Only five of the third messages received included offers. This chart shows the actual offers across those the three-message series: MESSAGE 1 MESSAGE 2 MESSAGE 3 Free Shipping Free Shipping Free Shipping Free Shipping Free Shipping Free Shipping 10% off 10% off 10% off No offer No offer 10% off 5% off 10% off 10% off
  • 7. What’s interesting to note here is that the vast majority of third messages from the Top 500 do not have an offer, while the reverse is true for the Second 500. And, in the first message, both groups were almost equally dispersed between offer and no offer. If you’re willing to offer a discount in the first message, why not carry it across all three messages? Our recommendations: We recommend implementing a discount ladder to maximize your profitability. Many times an offer isn’t needed in the first message as a simple reminder of the products in the cart is enough to prompt customers into action. However, a nominal discount in the second message can help entice shoppers who are still considering the merchandise to complete the purchase. And, for shoppers who still haven’t acted, a larger discount in the third message is typically too tempting to pass up. A discount ladder allows you to apply the larger discounts only to customers who need them so you’ll make more money on the transactions completed in your first two messages. Are emails personalized with customers’ names? Are emails personalized with images of items left in cart? Only 27.4% of the first messages received included the customer’s name in the email copy even though 100% of them had access to the information from Another surprise was that only 38.7% the checkout page. of the first emails received included images of the merchandise left in the IR 1000 Top 500 Second 500 carts. 27.4% 26.6% 28.8% 38.7% Our recommendations: Shopping cart abandonment messages are extremely personal messages, so avoid lumping all of your valuable customers into the “Dear Valued Customer” Our recommendations: category. Calling your customers by name really helps personalize the What is more tempting to a customer interaction. If you have the information, use it. than opening an email and seeing the merchandise they want to buy? In many cases, just seeing the items again is enough to prompt customers into completing the purchases, even without a discount. Again, you have the information so use it.
  • 8. Part 4 – The Checkout Process Where are online retailers capturing customers’ email addresses? 97.5% of the Top 1000 retailers that send remarketing campaigns capture customers’ email addresses on the first page of checkout. IR 1000 Top 500 Second 500 97.5% 2.5% 97% 3% 98% 2% page one page two But that percentage drops slightly to 93% when looking at the Top 1000 retailers that do not send remarketing campaigns. IR 1000 Top 500 Second 500 93% 89% 96.3% 5.3% 7.3% 2.8% 2.8% 3.4% 3% 1.4% .1% .6% .3% 0% 0% 1 2 3 4 5
  • 9. Where are online retailers capturing payment information? The biggest surprise of the study was found here. Of the online retailers that send remarketing campaigns, only 15.5% of the Top 500 companies request payment information on the same page as the email address whereas 92.3% of the Second 500 companies request the information on the same page. 1-1000 1-500 501-1000 56.4% 43.6% 84.5% 15.5% 92.3% 7.7% same page as email address different page than email address Of the Top 1000 companies that do not send remarketing campaigns, the numbers are more closely aligned. 29.4% of the Top 500 companies and 33.3% of the Second 500 request the information on the same page. 1-1000 1-500 501-1000 68.3% 31.7% 70.6% 29.4% 66.7% 33.3% same page as email address different page than email address Our recommendations: Email addresses should be the first thing you ask for during the checkout process. After all, you can’t send a remarketing campaign without one. The further in the process you request the information, the more chances customers have to abandon the carts. A Few Surprises In addition to the expected email reach backs, we also received three follow up phone calls after the carts were abandoned. All three calls were made within 1 ½ hours of the abandonment and all three were made by representatives asking if we experienced technical problems during the online checkout process and offering to complete the sale for us over the phone. Two of the three companies sent the first remarketing email message immediately after the phone call, and the third sent the email four hours after the call.
  • 10. We also received one direct marketing piece in the mail and; surprisingly, the company that sent the catalog did not send a follow up email. We were also surprised at the subject lines of the messages. We expected to see more subject lines announcing the offers, such as “You left products in your cart. Buy now and save $10.” But most of the subject lines were simple reminders, such as the few examples below: • Did you forget something? • Having trouble checking out? • Hurry, before it’s too late! • Thank you for your recent visit. • Where did you go? • Oops….Was there a problem checking out? • You left some items behind. • Ode to an abandoned cart. • Your purchase. Final Thoughts Shopping cart abandonment campaigns work. Once they are set up, they run in the background with little maintenance required. These campaigns are on an upward trend with a 42% increase in the Top 500 this year alone. If you don’t already have a solution, it’s time to implement one. In the next few weeks, we’ll release a look-book containing samplings of the emails received. The emails varied greatly – from simple text-based reminders to intricate dynamically-populated personalized messages. We’re here to answer all of your questions on shopping cart abandonment. Visit us at www.listrak.com to learn more. About Listrak Listrak is an email marketing firm providing the solutions, software, and expertise to optimize the value of email. Listrak works with clients like Birkenstock Central, Swell, Vintage Tub and Bath, Chiasso, and Active Ride Shop to develop engaging shopping cart abandonment remarketing campaigns that go beyond the inbox to the individual, to deliver the extra percent in effectiveness and ROI. Visit www.listrak.com to learn more. 877.362.4556 | www.listrak.com