Automated Shopping Cart Abandonment - Ross Kramer, Listrak

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The Cost of Lazy Email Marketing Listrak’s Email Marketing Best Practices Webinar Series: June 17, 2009 Visit www.listrak.com/resources.asp to view other webinars on demand after today’s presentation. ©2010. All rights reserved. This presentation may not be recorded, copied, distributed, or used without written consent from Listrak. Automated Shopping Cart Abandonment: Using Email to Recapture Lost Sales Ross Kramer, Lis

Transcript of Automated Shopping Cart Abandonment - Ross Kramer, Listrak

Page 1: Automated Shopping Cart Abandonment - Ross Kramer, Listrak

The Cost of Lazy Email Marketing

Listrak’s Email Marketing Best Practices Webinar Series: June 17, 2009

Visit www.listrak.com/resources.asp to view other webinars on demand after today’s presentation.

©2010. All rights reserved. This presentation may not be recorded, copied, distributed, or used without written consent from Listrak.

Automated Shopping Cart Abandonment: Using Email to Recapture Lost Sales

Ross Kramer, Listrak

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60 – 75% of shoppers on your eCommerce site

Abandon

Why are we here today?

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What’s my abandonment rate?

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Funnel Visualization

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web site behavior +

triggered email marketing=

massive ROI

What To Do?

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600,000 monthly unique visitors

37,000 carts created

3,000 emails captured

MoviesUnlimited.com

27,952 shoppers abandoned

11% email capture

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11% Email Capture +

11% - 30% Conversion Rate=

300 recovered orders per month

Web Analytics

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Upon purchase shopper is removed from campaign

Shopper Abandons

Cart

Wait 3 Hours

1st Message

Wait 2 Days

2nd

Message

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Shopper Abandons

Cart

Wait 24 Hours

1st Message

Wait 5 Days

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• Offer vs. non-offer testing

• Campaign timing testing - 1 Hour / 6 Hour / 24 Hour delay

• Multiple follow-up messages

• Items displayed in HTML email

MoviesUnlimited.com Strategy

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Personalized MessagesOpen Rate

Read Rate

Click Thru Rate

Conversion Rate

1 Your movies are waiting for you 42.4% 41.4% 25.2% 10.45%

1 Save $5.00 On Your Order 35.1% 33.9% 21.1% 11.38%

2 Speedy checkout for the movies you saved 25.9% 23.9% 12.3% 9.09%

2 Speedy checkout + $5.00 savings for your order 24.5% 22.8% 12.7% 9.63%

3 We're saving your movies for you 71.5% 68.1% 36.2% 24.49%

3 Here's a $5.00 coupon for your order 73.2% 70.5% 43.7% 12.70%

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Email Remarketing Best Practices

1. Leverage data for maximum campaign ROI

2. Optimize campaign timing

3. Manage content assets for best user experience

Shopping Cart Abandonment

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Data Driven Approach

INSIGHTS• Cart Amount• Past Purchaser (Y/N)• Days since last purchase• Spend - 1YR• Spend - 2YR• Spend - 3YR• Spend - Lifetime• RFM score

Data Driven Approach

OUTCOMES• Increase AOV• Margin Optimization• Maximize re-engagement• Promote brand loyalty

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Understand behavior and intentDetect Stage of Cart Abandonment

INSIGHTS• Shipping page abandonment• Billing page abandonment

Best Practice: Campaign Design

OUTCOMES• Shipping offer• eBillMe, Credit Card offer

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Campaign Timing

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Best Practices

• Best conversion rates are seen as close to abandonment as possible• 1 hour wait has higher CTR, 6 hour wait has a higher AOV• Send a series of emails – not just one!• Shorten the delay from one message to next if shopper clicks but does not convert

Campaign Timing

Shopper Abandons

Cart

Wait 3 Hours

1st Message

Wait 2 Days

2nd

Message

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1 Day 2 Day 5 Day0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

Why wait?Effect of reminder email timing on conversion rate

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Promotion & Margin Optimization

Campaign Promotion Concepts

• Promotions should be used to drive demand, don’t forget to test hold-back• Use single-use coupons if possible• Test using promotion in second series email• Test discount ladder concept as latency increases

• First Email: No promotion• Second Email: $5 off• Third Email: $10 off

• Test promotions that increase AOV

blog.minethatdata.com

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Campaign Success

Movies Unlimited Promotion

$5 off $25

Promotion & Margin Optimization Testing

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Offer drove26% more orders

SCA Programhad 27.7% higher AOV than normal website

Offer drove 37% more

products ordered

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“Judie”Past Purchaser: YDays Since Last Purchase: 231YR$: $1,200.00

“Linda”Past Purchaser: NDays Since Last Purchase: null1YR$: $0.00

No Offer Offer

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Content Best Practices

Content Concepts

• Pictures of products

Source: Listrak 2nd Annual Shopping Cart Abandonment Study

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Content Best Practices

Source: Listrak 2nd Annual Shopping Cart Abandonment Study

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Content Best Practices

Content Concepts

• Recommended products• Leverage an asset you might already own• Certona, Baynote, RichRelevance, etc.

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Certona IntegrationContent rendered byCertona’s Resonance Image Server

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Easy Idea!Hard-code block of content based on best sellers

Source: Listrak 2nd Annual Shopping Cart Abandonment Study

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Content Best Practices

Content Concepts

• Available in store• Find your nearest store CTA

• Video• Safety and Security

• Shop with confidence• Ratings and Reviews

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Case in Point: Vintage Tub & Bath

• IR500 Retailer• Bazaarvoice customer since 2006• 12,500 parent SKU's• 1,887 reviews• Over 86% of reviews have a 4 star rating or better

Social Proof: Ratings & Reviews

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Review Criteria

• Approved reviews only• 4 (out of 5) star reviews only• “Featured Reviews” and reviews from “Top Reviewers” given priority display

Social Proof: Ratings & Reviews

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Savvy Users Might “Game the System”• Do you even care?• Randomize offers• Suppress offer for 90 days to individual shoppers

Multi-Channel Retail• Promotions / messaging need to be in sync between channels• Consider ROPO effect

Call Center Orders Might Need Extra Help• Inform call center of abandon cart shoppers

Management Concerns

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• Know your abandonment rate

• Leverage data for maximum campaign ROI

• Optimize campaign timing

• Manage content assets for best user experience

• Test timing of your triggered messages

• Test number of messages sent

• Test different offers

• Add value – don’t just sell

• Get it up and running … ASAP!

Closing Thoughts

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Questions