cart abandonment email marketing

Everything you need to know for cart abandonment email remarketing success

cart abandonment

Everything you always wanted to

know aboutcart abandonment

emails*

Explained byLisa Moling

Loren McDonald

*BUT WERE AFRAID TO ASK

Speakers

Loren McDonald, Vice President of Industry Relations, Silverpop

• Leads industry leadership activities including more than 500 articles on email marketing, blogs, educational sessions and Webinars.

• 28 years experience in marketing, consulting and strategic planning with executive level positions at Lyris, EmailLabs, USWeb/CKS and Arthur Andersen.

• eec Marketer of the Year - 2011

Lisa Moling, E-Marketing Manager, DEMCO

• Develop & implement e-marketing programs including email marketing, online promotions, web analysis, paid search, social and CRM

• Over 15 years online and direct marketing experience in diverse industries including tourism, insurance and industrial safety.

About DEMCO

About DEMCO• Based in Madison, WI• Sell library supplies

– Originally a catalog company– Now web is a primary order source

• B2B, but respond like consumers

About Silverpop

Agenda: 5 Categories > 12 Questions

Background

Business Case

Data / Integration

Timing / # of Emails

Creative / Incentives

- We started with 25+ questions

- Rehearsed with 19

- Cut to 12 for today

0. Are we cool with what cart recovery is, why you should do

it, ….?

Building the Business Case

1. How do we get the necessary budget, IT and marketing

resources to make it happen?

Assess capabilities & articulate goals

• “Batch & Blast” emails via a small business email service provider.• Using Adobe SiteCatalyst• Read research studies which demonstrated conversion rates on abandoned cart

emails could be 4-6x conversion rate of a “regular” email

Current Capabilities

• Increase sales by optimizing conversions – Identify and market to cart abandons• Free up manpower by automating routine tasks - API integration allow us to

automate opt-outs/opt-ins from our email system to our business system• Track Revenue per Send - New email service provider could integrate with web

analytics so we could track email sales

Program Goals

Gap analysis demonstrated that we needed to search for a new ESP

Build Revenue Forecast

 Open Shopping Carts Program

Qty 25,000

Open rate 60%

Opens 15,000

Click to Open 40%

Clicks 6,000

Potential RR 15%

Orders 900

AOV $215

Potential Sales $193,500

Sales/Email $7.72

Estimate incremental revenue analysis - demonstrates potential huge revenue win.

Demonstrate the ROI

 Q3/Q4

2008 2009 2010Sales Triggered Emails $500,000 $750,000 $1,000,00

0

Cost (ESP, Analytics Integration,

etc.)

$50,000 $55,000 $55,000

Sales/Spend $10 $14 $18

Expecting ROI Positive in year 1!

2. What kind of conversion rates and revenue can I expect?

Following up with abandoners by email

yields

up to 50% conversion.

Relative VolumeAbandon Cart

Emails0.3%

Promotional Emails99.7%

DEMCO: Cart vs Broadcast Emails

Relative Sales

Abandon Cart Emails18.6%

Promotional Emails81.4%

High % of sales relative to volume

Cart Recovery: Percentage of Email Revenue

70% 50%

12% 10%

5% 5% 4% 2%2% 1% 1% 0.50%

30% 25% 25% 20% 20%

Source: Silverpop 2010 Benchmark Study

Cart Abandonment Recovery Email Programs:

Cart Email ADay 1

Cart Email BDay 3

Cart Email CDay 5 AVERAG

E

Open Rate 40% 39% 32% 37%

Click-to-Open 44% 47% 28% 41%

Click-thru-Rate 18% 18% 9% 15%

Conversion Rate

22% 15% 24% 20%

Sales/email $8.60 $8.40 $5.04 $7.46

DEMCO Results

Conversion rate is just as high on the first email as it is on the last email – without an offer

Data and Integration

3. Where do we get the email addresses from?

2 sources for email addresses

Launch promotional emailSystem: Silverpop

Go to demco.comSystem: Adobe

(Genesis)

Launch abandoned cart emailSystem: Silverpop

Data feeds:• Abandoned cart date• Product purchase date• Product IDs• Shopping cart URL (business

system)

Web visitors(from search, bookmarks, etc.)

Go to demco.comSign in & save cart

Launch abandonedcart email

System: Silverpop

Data feeds:• Abandoned cart date• Shopping cart URL

(business system)

4. How do I get the data between my ESP and Adobe Site

Catalyst?

Genesis Integration with your ESP Makes it Easy!

No need to add code to your web pages to launch an integration!

GenesisEmail Partners

5. How long will it take from setup to launch?

DEMCO: 4 months start to finish

25

ESP & Adobe Genesis integration

Start w/new ESP

25

IT programming - Changes to cookie, cart ID in URL, carts from signing inCreative development

Create triggered rules & testing

JanLaunch

Timing and Number of Emails

6. When should the first cart recovery email be sent?

Timing Factors

1. Within 1-2 hours, but 24 at latest2. 23 hours3. 3-5 days, 1 week

• Factors/Issues:• Product type (e.g., travel)• Feed timing• Did they purchase after abandoning?

7. How many cart recovery emails should we send?

How many emails should you send?

At least 1

2 is better

3 is even better

4 or more – may be too many, but test it

Message A – 1 day after

Message B – 3 days after

Message C – 5 days after

Creative – Design, Content, and Incentives

8. Should we use incentives?

Use Promotions, but with care

• Promotions will generate lift, and incremental profit

• Best practice is to promote on the last of your sequence• Capture maximum margin• Avoid training the customer to expect a

promotion

Cumulative conversion

Conversion per stage

Unsubscribe rate

1 2 3

Lift

Stage Conversion Open Rate Revenue / email

1: Real time 22% 70% $11

2: 24 hours 7% 65% $4

3: 7 days 6% 60% $3

Total 35% Average 65% Average $6

Source: SeeWhy

Simple – Save 15%

9. Should we include product photos, pricing, reviews and

recommendations?

25% conversion on cart abandoners.

Cart program account for almost 1/3 of TOTAL yearly email sales

First and most effective in the series sent within hours after abandonment.

Price

Product Inclusion – No price…yet

Next step add in price and

average reviews

The results:

• 38.5% open rate

• 10.15% CTR

• 50% conversion rate

• $4.80 revenue/email

Next step add in price and average

reviews

10. What kind of design/layout approach should we use?

Clean / Multiple “reminders”

Stylish…

11. What kind of tone and style of copy should we use?

• Service tone

• Human • Multiple

channel options

• Reassurance• 50%

conversion

12. What are subject line best practices and examples?

From Name Subject Line

Soft Surrounding Good News! Your Shopping Bag is Still Available

Simple Shoes Want to get free shipping on your next order on simpleshoes.com?

Fabric.com Don't Go Yet! Come Back to Your Shopping Cart & Save!

Exclusively.In Hurry! You Have Items In Your Cart, Get Them Before They're Gone.

Exclusively.InHurry! You Have Items In Your Cart, Get Them Before They're Gone & Get Free Shipping Until The 15th Of Dec.

Cuddledown Items in your shopping cart are still available for purchase

CircuitCity.com You Left Something at CircuitCity.com…

Advance Auto Parts How can we help you with your purchase?Yankee Candle Company Is it something we said…

TigerDirect.com You Left Something at Tiger…

Smarthome You've left items in your cart!

Smarthome You still have items in your cart!

Smarthome Your cart is gathering dust!

Smarthome Only 24 hours left to use your cart!

Smarthome Your cart items are getting lonely!

SmartPak Canine A reminder from SmartPak Canine

SmartPak Equine Did you forget something?

Soft Surroundings Good News! Your Shopping Bag is Still Available

Spalook.com Forget Something From Your Bag?

DEMCO.com Courtesy Reminder

DEMCO.com Important Notice

DEMCO.com Special Offer for You

Sample From Names/Subject Lines

Subject line considerations/best practices

Be helpful

Include incentives when applicable

Be positive

Don’t make them guess

Create a sense of urgency

Test, test and test

Summary / Takeaways…

Just get started – don’t try to boil the ocean

Series, better than single email

Test timing, but early can be key

Use incentives carefully, later in series

Take a helpful, human approach with content/copy

Test and optimize over time

13. Your questions here __________________________________________________

__________________?

Q & A / Contact Information

Lisa Molinglisam@demco.com

Twitter: @Silverpopwww.slideshare.net/silverpopwww.silverpop.com

Loren McDonaldTwitter: @LorenMcDonaldlmcdonald@silverpop.comGoogle+: Loren McDonald

14. What is it and why do consumers abandon carts?

What is cart abandonment?

Top 5: Why visitors abandon shopping carts

Potential solutions:

1. Tune the shopping cart process2. Remarket

None of the top 5 reasons for abandonment can be addressed by tuning the conversion process

#1 Price #2 Not ready to buy

Source: SeeWhy

15. How big is the challenge / opportunity?

87% of consumers abandon carts

…75% say they will return to complete the purchase.

Source: Amaze/University of Glasgow

— Multiple Sources “60–70%”

Abandoned Carts, Lost Revenue

57

Up to 70% of Shopping Carts are Abandoned before Checkout

Cart Abandonment: 1-step from revenue

Sent

Delivered

Opened

Clicked

Product Views

Cart Additions

Checkouts

Orders

Revenue

Units

16. Are we the only company NOT deploying cart recovery

emails?

Do you deploy cart recovery emails?

Still quite a few who have not deployed this email remarketing technique.

17. What are the typical costs involved in setting up a cart

recovery program?

Costs - $ and resources

Email service provider - startup

Integration costs between ESP & Adobe Site Catalyst

Email design

Promotional cost (margins)

Programming – data feeds

Set-up of triggered campaigns

18. Are there things other than abandonment that we can trigger a cart email off of?

Sample Cart Abandonment Types

Recency

Cart Expiration

Product Availability

Price Change

19. Don’t consumers game the system?

What about gaming the system?

It isn’t a big issue

You can suppress gamers

Most marketers will take the revenue regardless

20. What are some of the business rules and exceptions

we need to be aware of?

Sample Rules and Lessons learned…

Price minimum

Suppress frequent abandoners

Suppress after purchase

Other abandons, not just via email

Add an opt-out flag for abandoned carts only

Don’t say “we’re going to empty your cart!”

21. What kind of reports can I see for cart recovery in

SiteCatalyst?

Integrated Email Data Looks Like This

Email campaign data from partner• Campaign Attributes • Opens• Bounces• Click-through

Email Campaign Metrics

With site conversion data from SiteCatalyst Revenue

Orders

Conversion Rate

Average Order Value, etc.

Site Conversion Metrics