How to Finally Abandon Shopping Cart Abandonment Issues, Jeanne Jennings, March 2015

1 @JeaJen @dprism1

How to Finally Abandon Shopping CartAbandonment IssuesMarch 19, 2015

Jeanne S. Jennings

Managing Director, Digital Marketing

Digital Prism Advisors

A Digital Transformation Consultancy

2 @JeaJen @dprism1

Overview

The Problem

The Remarketing Solution

Tips for Success with Remarketing

Avoiding the Problem

Additional Resources

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The ProblemHow to Finally AbandonShopping Cart Abandonment Issues

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70% of Online Shopping Carts are Abandoned

Source: "Why We Don't Buy: Consumer Attitudes on Shopping Cart Abandonment,"

Bronto/Magento Study, 2013

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That’s 7 out of 10 carts which don’t check out!



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Shopping Cart Abandonment Accounts for

$18 BillionIn Lost Revenue Each Year

Source: Surepayroll, 2014

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150,000 Top of the Line Teslas

That’s Enough Money to Buy…

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1,600 Beachfront Homes in Malibu

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The Washington Capitals..

Along with the Other 29 Teams in the National

Hockey League…

And You’d Still Have

$3.2 Billion Left in Your Bank Account…

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…And be

Guaranteed

Time with

Lord

Stanley’s

Cup!

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What’s an Online

Retailer to Do?

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The Remarketing SolutionHow to Finally AbandonShopping Cart Abandonment Issues

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85% of Shoppers FindCart Reminder Emails Helpful



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61% of Shoppers Say Cart Reminders Will Get Them Back On Your Site



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46.1%Open Rate

13.3%Click-through Rate

35.5%of Clicks Lead to

Purchase

19.1%Lift in AOV over

Typical Purchases

Cart Reminder Email Metrics

Source: SaleCycle Cart Abandonment Infographic, 2014

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But Most Importantly…

An Average of

$5.64of Revenue is Generated for Every Cart

Reminder Email SentSource: SaleCycle Cart Abandonment Infographic, 2014

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So Why Aren’t

More Online

Retailers Sending

Cart Reminder

Emails?

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Experiment

-----

December 2014

Source: “Abandonment = Opportunity: Five Tips to Boost Remarketing Revenue,”

Margaret Farmakis for the Return Path Blog, December 8, 2014

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24 Abandoned Carts“Top 100” Apparel and Accessory Retailers



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5 Cart Reminders within 24 Hours3 with Product ImagesNo Discount Offers



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10%

Off

A 2nd Cart Reminder 1 Day Later10% Discount Offer



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10%

Off

Another 2nd Reminder 2 Days Later20% Discount Offer

20%

Off



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10%

Off

That’s It.

20%

Off

And When She Clicked On These Messages,

the Cart Was Empty.



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20.8%Sent a Reminder

60%of Those Included

Product Images

40%of Those Sent a 2nd

Reminder with a

Discount

Cart Reminder Experiment



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Tips for Success with RemarketingHow to Finally AbandonShopping Cart Abandonment Issues

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Offer a Discount

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54%of Online Shoppers Asked Said They Would Return and Buy if a Discount were OfferedSource: “VWO eCommerce Survey 2014,” Visual Web Optimizer

Offer a Discount

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72%of Millennial Shoppers (Aged 25 to 34) Asked Said They Would Return and Buy if a Discount were OfferedSource: “VWO eCommerce Survey 2014,” Visual Web Optimizer

Offer a Discount

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A Discount or Free Shipping?What’s Expected…

0%

5%

10%

15%

20%

25%

30%

Reminder Email Offering aDiscount

Reminder Email Offering FreeShipping

Female MaleSource: “Shopping Carts Secrets: Gender,” Bronto

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Include a Product Image

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Include a Product Image

“It’s easy for consumers to forget what items they placed in a particular shopping cart.

Showcasing those items in the message will not only remind the consumer what they were thinking about purchasing…

…but will be more effective at driving a desired action than a generic email with a stock image of an empty shopping cart.”



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Offer Assistance

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AddUrgency

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AddUrgency



“None of the messages I received

drove urgency with a limited time

offer.

This is an especially important

tactic if a discount is being

offered.

Abandoned cart emails are perfect

for featuring real-time dynamic

content, such as countdown clocks

or timers.”

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Leverage Your Brand’s Personality

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Leverage Your Brand’s Personality

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Go Omni-Channel

Leverage App Notifications, texts, banner ads

and any other ways you have to communicate

with the shopper

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Source: “VWO eCommerce Survey 2014,” Visual Web Optimizer

Go Omni-Channel

40%of People Have a

Shopping App

Installed on their

Mobile Phone or

Table

60%of Millennials Have

a Shopping App

Installed on their

Mobile Phone or

Table

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Send More Than One Reminder

“…brands sending a second abandoned cart email saw a 50% increase in abandoned cart revenue compared to their first abandoned cart mailing.

Brands sending three messages saw a 56% increase in revenue compared to just sending the initial abandoned cart email.”



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“Sending a series of messages also creates a great opportunity for testing, such as only offering a discount with the second or third message, or offering a greater discount with the final message.”



Send More Than One Reminder

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Avoiding the ProblemHow to Finally AbandonShopping Cart Abandonment Issues

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“The Best Defense is a

Good Offense”

Sun Tzu,

The Art of War

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Why Shoppers Abandon Their Carts

Source: “VWO eCommerce Survey 2014,” Visual Web Optimizer

28%

23%

16%13% 12%

8%

0%

5%

10%

15%

20%

25%

30%

UnexpectedShipping Cost

Had to Createa New User

Account

Were JustConductingResearch

PaymentSecurity

Concerns

ConfusingCheckout

Couldn't FindCoupon Code

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Millennials Pose a Special Challenge

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Millennials Pose a Special Challenge

0%

10%

20%

30%

40%

50%

60%

Research and Buy Offline Research Online, Buy Offline Research Offline, Buy Online No Research, Buy Online

Electronics Shoes Sports Equipment/ Accessories Cosmetics and Personal Care Items

Source: “Generation Y: Shopping and Entertainment in the Digital Age,” M. Leanne

Lachman and Deborah L. Brett for the Urban Land Institute, 2013

Online Shopping

is Cheap

Entertainment!

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Source: “Mind Your Millennials: 7 Reasons I Abandon My Online Shopping Cart,” Glori

Blatt for the Decoded: Contemporary Commerce Blog, February 24, 2015

Millennials

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Millennials

Price Not Enough

Product

Information

Inconvenient

Checkout

“I never buy

something online

without doing a price

comparison first to

ensure that I’ve

found the cheapest

option.”

“I may like the look

of something enough

to add it to my cart,

but I will never, ever

click “buy” without

detailed product

information”

“When I’m browsing

on my phone during

my commute to or

from work, the last

thing I want to do is

whip out my wallet,

dig through my

cards, and enter in

payment

information.”

Source: “Mind Your Millennials: 7 Reasons I Abandon My Online Shopping Cart,” Glori

Blatt for the Decoded: Contemporary Commerce Blog, February 24, 2015

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What’s an Online

Retailer to Do to

Address…

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Unexpected

Shipping Costs

(28%)

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Offer Free Shipping

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Offer Free Shipping

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Had to Create a

New User Account

(23%)

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Allow Guest Checkout

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Just Conducting

Research

(16%)

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Provide a Wish List

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Payment Security

Concerns

(13%)

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Let them Know You are Protecting their Payment Information

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Confusing/

Complicated

Checkout

(12%)

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Optimize and Streamline Your Checkout Process

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Minimize Clicks to

Purchase (within Reason)

Track and Analyze Where

in the Checkout Process

People are Abandoning –

Then Address the

Issue(s)

Provide the Option to

Create an Account so that

Returning Customers

Don’t Have to Enter Their

Information Again

Allow Even New

Customers to

Automatically Populate

Fields for Common

Scenarios

(Billing/Shipping Address)

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Allow Customers to Save

Multiple Shipping

Addresses and Forms of

Payment

Provide a Visual

Representation of Where

They Are in the Checkout

Process (Step 2 of 3)

Remove Distractions

Which Might Cause

Customers to Abandon

the Process (Navigation,

Advertisements)

Show Them Their Cart

Total Cost as Early in the

Process as Possible

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Couldn’t Find

Coupon Code

(8%)

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Don’t Tease Them

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Additional ResourcesHow to Finally Abandon Shopping Cart Abandonment Issues

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Additional Email Marketing Resources | Free

Look for Jeanne’s column on email marketing every other Monday

www.ClickZ.com

Jeanne’s Blog and Email Newsletter

www.JeanneJennings.com

@JeaJen to follow Jeanne

@DPrism1 to follow Digital Prism

http://www.clickz.com/

http://www.jeannejennings.com/

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The Premier Email Marketing Association, part of the DMA

www.EmailExperience.org

A Private Community for Email Marketers; look for Jeanne’s monthly post on the blog

www.OnlyInfluencers.com

The best way to keep abreast of eCommerce best practices

http://www.retailonlineintegration.com/

Additional Email Marketing

Resources | Paid

http://www.clickz.com/

http://www.onlyinfluencers.com/

http://www.retailonlineintegration.com/

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A Little About MeHow to Finally AbandonShopping Cart Abandonment Issues

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Source: “The Top Email Marketing + Design Thought Leaders on Twitter,“ Lauren Smith

for the Litmus Blog, January 22, 2015

Me

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Source: “The World’s Top 50 Email Marketing Influencers," Stacey Miller for the Cision

Blog, July 2, 2014

Me

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20+ Years

Email Marketing

Strategy,

Tactics and

Creative

Direction

Great Brands

as Clients

Me

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Strengths

The successful marriage of:

Sound, cohesive

digital business

strategies

Effective

technology tool

selection

Digitally-enabled

process

improvement

Opportunities

Customers: New

Customers

improving

satisfaction,

incremental sales

Markets: Adjacent

markets, new

markets, market

share improvement

Products: Bundling

and unbundling,

derivative products,

new products,

subscription models

Me and

the

dprism

team

Digital Transformation

76 @JeaJen @dprism1

How to Finally Abandon Shopping CartAbandonment IssuesMarch 19, 2015

Thanks for Attending! Questions?

Jeanne S. Jennings

Managing Director, Digital Marketing

Digital Prism Advisors

www.dprism.com

202.365.0423 | [email protected]

How to Finally Abandon Shopping Cart Abandonment Issues, Jeanne Jennings, March 2015

Marketing

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