Are you sitting down? You need to hear this: two-thirds of your customers are adding items to their cart and abandoning them.
Shopping cart abandonment alone accounts for $18 billion in lost revenue for ecommerce companies. Can you imagine what $18 billion in merchandise would look like in those carts and what that means to your bottom line.
There is good news though: 35 percent of these lost customers convert with a triggered email. Do the math and by enabling abandoned cart emails you increase your stores revenues by 24 percent!
Before we look at how to do boost your revenues lets look at the root of our problem.
What causes cart abandonment?
We compiled a study by UPS and comScore to list the top 5 reasons why customers abandon their online shopping carts:
- Unexpected shipping costs or conditions at checkout
- Browsing for a better price elsewhere
- Didn’t want to create an account to purchase
- Preferred payment was not offered
- Got distracted and forgot to complete the order
Shipping costs and conditions such as delivery time and minimum orders continue to be the top reasons why customers ditch their cart. Shipping aside, customers leaving to browse for better deals or not wanting to create an account continue to plague ecommerce stores.
There are multiple was to re-target and re-engage lost customers but if you’re able to collect an email through an account or elsewhere in the browsing process this is where the fun starts and money comes rolling in.
Acquiring customer emails
To convince customers to come back, stores must be proactive in collecting emails. Proactive doesn’t mean an “enter your email here” in the footer of your site. Proactive means pop ups, the email collection method that increases daily sign ups by 758%! Give your customers incentive to enter their details by including discounts, promotions, and other special offers.
If you want customers to create an account, make it meaningful. Urban Outfitters does a great job of this by allowing their members early access to their sales. That means I get to scavenge through the $10 and under section before the rest of the world just for giving my email.
For the customers who don’t want to create an account, make sure your store has a guest checkout process. As soon as they enter this funnel collecting their email must be the first thing you do. Customers are less likely to abandon when asked for their email in comparison to their home address or payment details.
Sending Abandoned Cart Emails
Cart abandonment emails get more conversions because they are timely, relevant, and personalized. Follow these tips to send the perfect email and get more conversions on your site.
1. Offer a last minute discount: Remember the top reasons for cart abandonment were shipping costs and browsing better prices. Offer a small discount to make your price more attractive and convert these customers now.
2. Have a clear subject line: Theres a good chance that your customer got distracted and forgot to complete the order. They’re not expecting a cart abandonment email, having a clear subject line that tells them exactly what the email is about, drastically increases open rates.
3. Optimize for mobile: 33 percent of all email clicks occur on a mobile device. Make sure everything from your email to your checkout process is accessible on any device.
4. Send it ASAP: 72 percent of customers who buy from abandoned cart emails convert within the first 24 hours. Set time-based triggers so your email stays relevant.
5. Fun Copy: No one likes a nag. Write entertaining copy that your customer will enjoy and drive them back to your site.
6. Test everything:. Use different offer codes to find out exactly what is causing customers to abandon their carts. Also test subject lines, time sent, and frequency.
7. Add personalized product recommendations: The first item added to the cart might not be what your customer was looking for. Recommend related products based on past purchases and browsing behavior. SmartrMail is the only email marketing platform for Shopify and BigCommerce that combines both these sources of data to deliver hyper-personalized product recommendations.
Every ecommerce store should be sending abandoned cart emails. Not sending them leads to customers browsing your competitor sites and ultimatley purchasing elsewhere. With SmartrMail you can automate abandoned cart emails in minutes and remind buyers that your store is where they should make their purchase.