When shoppers breeze through a brick-and-mortar store without purchasing, merchants do not have many options to re-engage prospective customers short of chasing them through the parking lot (not recommended). In theory, online merchants and advertisers should be better equipped to reel online shoppers back in.
In reality, 40% of small- and medium-sized businesses (SMBs) said cart abandonment was more than a minor issue, with 12% ranking it as a “significant issue,” according to Paysafe’s “Lost in Transaction" report. But the issue goes deeper because far too many online retailers and advertisers fail to fully leverage cart abandonment data to convert prospects. It’s more than just an oversight, because not capitalizing on this data means businesses are leaving money on the table.
Merchants and online advertisers who tap into cart abandonment data and other customer information can lower customer acquisition cost (CAC), generate better return on investment and increase profitability.
Merchants should aim to recover 10% to 15% of shopping cart abandonment leads. With those figures in mind, consider how much additional revenue you could make if you converted those leads into sales. Moreover, you might have already spent dollars to acquire those leads, so do not let it go to waste.
Whether you call them “prospects” or “partials,” re-engage these shoppers who left your ecommerce store before they forget your product or service.
Break up the checkout process into two web pages so you can capture the shoppers’ contact information on the first page, even if they do not submit their credit card information during the next step. (Be sure to include a progress indicator so shoppers can see remaining steps.)
A sophisticated ecommerce platform should enable merchants to easily track who did not complete checkout, then retarget those prospects. Here are some ways merchants can segment data for retargeting campaigns.
· Shoppers in a certain city or state. Retarget offer example: “Florida residents get BOGO ticket admission.”
· Shoppers who made a past purchase. Retarget offer example: “10% off for returning customers.”
· Shoppers who abandoned cart in the past 24 hours. Retarget example: “One-day sale for X product.”
The platform should also allow merchants and advertisers to export this segmented data or connect data through integrations with other ecommerce tools.
Once merchants and advertisers dial in on shoppers who did not complete checkout, the next step is deciding how to retarget them. Consider the following three channels for retargeting cart abandonment leads. Keep in mind your customer acquisition cost (CAC) for these campaigns will be lower compared to working off a cold lead list because these shoppers have already shown interest.
Email nurture campaigns — Sending targeted emails is still an effective way to reach shoppers while keeping CAC low. Incentivize email receivers to immediately purchase by offering discounts, bundles or savings on their next purchase. Be sure to select an email automation solution that uses machine learning to determine the optimal times to send messages.
SMS follow-ups — Complement email campaigns with SMS marketing, especially as consumers grow more comfortable receiving texts from brands. An Omnisend study reported 9.8% click rates for SMS marketing messages worldwide in Q3 2020, which was up from 8.2% in Q3 2019. The conversion rate also doubled from 1.2% in Q3 2019 to 2.4% in Q3 2020.
Call center outreach — Use call center agents to contact prospects who did not complete checkout. Instruct the agent to complete the transaction over the phone. This is also the perfect opportunity to offer a subscribe-and-save option if available.
Like all campaigns, it is essential to test and refine these retargeting strategies. Compare conversion rates from cart abandonment leads with leads from other traffic sources to determine which strategy proves most successful.
Connecting with prospective customers can be challenging if an ecommerce platform cannot easily connect to other retargeting technology. Since sticky.io is an API-driven platform, integrating with SMS platforms, email marketing providers, call centers and other ecommerce tools is simple. Before migrating to a new ecommerce platform, check with the provider to make sure the platform can support your specific retargeting strategy and fits with your current technology stack.
Online retailers and advertisers consistently hunt for more consumer data. But a database brimming with buyer behavior details can only go so far. By capturing cart abandonment data and retargeting prospective customers, merchants can ensure these shoppers — and their dollars — do not slip through the cracks.
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Payment orchestration is more than just a buzzword; it’s a real boon to ecommerce merchants. Here’s what you need to know about POPs and your payments.
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Learn the solutions for common payment declines to make more sales, reduce churn and keep your hard-earned customers happy.
Episode four of The Ecommerce Minute: Quick Tips for Online Sellers explains decline management, including why payment declines happen and how to prevent them from affecting your bottom line.
