Cart Abandonment can happen for numerous reasons. If your site is not cleverly constructed visitors can easily be lost in the checkout process, though the site design and checkout process is not always to blame. Some people simply get distracted or are just browsing, some even think they made a purchase though didn’t realise they missed a step. Without a follow up “Cart Abandonment Email” to capture this audience you are losing out on potential sales.
A recent study (from a selection of 200 global brands) has shown that the average conversion rate from a Cart Abandonment Email reduces for every minute that passes. For example the ecommerce stores in this study received a 5.2% conversion rate when the email was sent within 20 minutes, though waiting for 2-24 hours reduced the conversion rate to 3.2%. So “speed matters”.
Re-engaging the customer within the first hour of an abandonment basket dramatically increases your conversion rate. We recommend an ‘immediate’ email on abandonment. Speed of response is essential for sales recovery, with a 50% drop in performance on conversion after 24 hours… so don’t wait! We also recommend you setup a series of triggers to follow up the customer 3 times until the conversion happens (we suggest one immediately, another after 24 hours, and one a week later).
The subject of the Cart Abandonment Email is also important. This same study showed that a combination of the company name and product details was the safest bet to ensure an open rate over 50%. Including the person’s name only received a 38% conversion rate so the days of ‘email personalisation’ may be over, which I believe is due to years of overuse with this strategy within SPAM campaigns.
The content within the email is also critical. As the saying goes “content is king”. Where you place design elements and links will influence the click through rates, so ensure you test different formats. Also make sure you include your value proposition (eg free shipping, easy returns, safe shopping, etc) within the email to build confidence.
To get an effective Cart Abandonment Email setup for your online store simply contact us.
Changes in technology and the way Australians spend, read and learn will be key factors determining which industries will fly and which will fall in 2012. IBISWorld has just announced the top five growth industries in 2012, with ‘Online Shopping’ being on this list (along with Diamond and Gemstone Mining, Motor Vehicle Manufacturing, Online Education and Biotechnology).
While many bricks-and-mortar retailers reported a tough year in 2011, Australia’s burgeoning online shopping industry has gone from strength to strength. IBISWorld expects this to continue in 2012, forecasting growth of 10.2% to reach revenue of $10.4 billion – representing about 5% of the total retail sector.
The industry experienced significant growth over the past five years, as consumers became more comfortable with shopping online, and as more major retailers launched online stores. Computer and electrical items are the most common online purchases.
Although computer and electrical goods are the largest online product segment, food and liquor sales are quickly catching up. In 2012, growth in online food and liquor sales will be boosted by Woolworths, Coles and Aldi all releasing smartphone apps in late 2011.
With the introduction of mobile commerce (mCommerce), Australians are increasingly using their mobiles to purchase goods at the touch of a button. Australians now have the 2nd highest smartphone usage in the world (after only Singapore).
In Australia using a mobile phone to research a purchase is also becoming increasingly common. More than 84% of Australians now use their mobiles to search for goods and services in their local area. Many Australian consumers use their mobile to find retailers, compare prices, read reviews, and receive discounts.
In the future, it will become common place for consumers to use mobile devices to assist purchasing decisions. Actually, it is expected that by 2014, mobile Internet usage will overtake desktop Internet usage. More than 1.3 million Australians are now shopping using their mobile.
2012 will definitely be the year that retailers must focus on mobile users by reaching out to them across devices with a mobile optimised website.
For more information on our m-commerce development and mobile optimisation services contact us.