The Science of Shopping Cart Abandonment
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Transcript of The Science of Shopping Cart Abandonment
The Science Of Shopping Cart AbandonmentCharles Nicholls
@webconversion
About
Charles Nicholls Chairman, Conversion AcademyFounder, SeeWhyChief Research & Strategy Officer
@webconversion
About SeeWhy• The real time shopping cart recovery service
• Best practices education• Primary research in ecommerce
@SeeWhyInc
Why Visitors Abandon
A single track view of conversion
5
Conversion is a numbers game:
Get lots of trafficGet enough to convert
Right?
The problem with one track conversion thinking
6
Less than 1% of new visitors will go straight to buy
More than 99% fall off your single track
Common Perception
Abandonment = Bad?
About our research Research study in August 2011 More than 600,000 individual visitors More than 250,000 transactions
The multiple paths to conversion
8
Abandonment is part of the purchase journey
What do you do to nurture fragile new leads &
first time customers?
Why 71% of shoppers say they abandon
#1 Price #2 Not ready to buy
Males:
More likely to compare prices
Less likely to abandon
Females: • More likely to save products for later • Take longer to buy• Even more sensitive to shipping and
handling costs
Source: Forrester
Design remarketing campaigns to address Price and Timing objections
Takeout
Top converting traffic sources
• Based on traffic arriving at the shopping cart
Source: SeeWhy n=63,507
Source: SeeWhy n=63,507
Develop strategies to capture more email addresses
Takeout
Google: ‘top traffic seewhy’ orhttp://seewhy.com/blog/2011/05/18/website-traffic-source-analysis/
Abandon Behavioral Patterns
Recovery rate of abandoned shopping carts is very different based on behavioral segments
Average abandons per purchase is 1.3, rising to 2.2 following a recent purchase
Recovery Rate 18%
Recovery Rate 48%
Recovery Rate 57%
Avg. 2.4 in 28 days
Source: SeeWhy n=179,907
Abandoning can be part of the purchase cycle
Takeout
Abandonment pattern within 28 days
Impact of Cart Size
$1-$100 $101-$250 $250-$300 $300-$250 $350-$400 $400+
Source: SeeWhy 8-11
Abandonment Rate by Cart Value
Detail on $1 – $200 Carts
Check shipping costs for low value carts
Offer free shipping at $99
Takeout
Those who don't buy initially:
Average time delay between first visit and purchase is 19 hours But 72% will buy in the first 12 hours
Average Time from First Visit to Purchase
Source: SeeWhy and ScanAlert
Start remarketing as soon as they abandon – the first 12 hours are the greatest opportunity
Takeout
The Impact of remarketing
No Remarketing
Nu
mb
er o
f ab
and
on
ers
retu
rnin
g
2x - 3x more abandoners will buy when remarketedRemarketing's biggest impact will be in the first 12 hours.
Takeout
On average
8% will return to
buy
With Remarketing
On average, an additional
26%
will return to buy when
remarketed
18% additionalrecovery
What You Can Do About It
Remarketing in Action
Re-considers the purchase
Individual website visitor
Adds item(s) to
their cart...
...and abandons without
purchasing
Visitor clicks through the
On average
26% Of identified
abandoners will convert
2 31 Real time API
On average
72%
will abandon
Follow up immediately with a 1-to-1
email campaign
Guthy Renker Proactiv Campaign
Immediate
23 hrs after
6 days, 23 hours after
Typical ‘Starter’ Campaign
Subject line: ‘Oops! Was there a problem with your cart?’
Immediate
Subject line: ‘Free exchanges on your order at LuckyVitamin’
Subject line: ‘Save 25% on your order at LuckyVitamin’
23 hours 6 days & 23 hoursRemind
Reassure
Promote
Heatmap predicts where the eye scans
Best practice example: NordicTrack
1. Relevance Timing Based on their web session
2. Value Service Link back to the cart Contact numbers etc
3. Call to action Clear Value based
Make it personal: Relevance = ROI
Product Detail Page Remarketing Email
Visual connection to the websiteDetails of the product abandonedStay focused: Don't distract the abandoner
Focus on the product Large image Product name Review stars
Free shipping call to action (with club membership)
Columbia Sportswear
Enhances brand relationship
Strong focus on 1-to-1 service
Personal shopper offer
Image of the item abandoned
Prominent call to action
Minimum cart value of $150 to qualify
Any observations?
Impact of skin tones and faces
http://usableworld.com.au/2009/03/16/you-look-where-they-look/
CSR image is too strong
Distracts from the primary call to action
Call to action button not strong enough
Alternate Route – No CSR
The impact of highly personalized content
Test of a 3 step email remarketing campaign, measuring lift in revenue recovered:
2.6%
33.2%
Batch:
Single email at +24hours
Real time:
Single email sent immediately
Real time gives:
A/B test comparing Batch to Real time
105% more revenue
+66% AOV
+30% Recovered
Carts+105
% Revenue
Real time tracking enables:
Multiple campaign steps (total 3 in this test)
Real time + multi stage gives:
A/B test: Real time + Multi Stage
412% ROI
+201%
Revenue
Impact of Step 2 and 3
Pitfalls to watch out for
Staying in step Synchronize remarketing with customer activity Batch transfers of data get out of step
Promotions Use promotions on the last of a sequence Use behavioural targeting to focus promotions on those
unlikely to buy anyway
Optimize Remarketing is part of your conversion path Don’t ‘set and forget’
Q&A
You’ve heard the story...now read the book
30 pages of insight into online buyer behavior
Tips and techniques to drive conversions
Request a copy by emailing us at [email protected]
Charles Nicholls [email protected]
@webconversion