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Recovering Lost Sales
                                                                                         01
                                                                                          877.362.4556

through an Automated                                                                    www.listrak.com
                                                                                        © 2010, Listrak

Shopping Cart
Abandonment Strategy
By Megan Ouellet, Director of Marketing
January 20, 2010


onvenience no longer trumps price for online
shoppers. Shoppers, in search of bargains, are
taking the time to compare prices, shipping fees,
return policies, and product reviews prior to making
a purchase – and there is no easier way to do that
than to add items to their online shopping carts. A
study by PayPal and comScore found 45% of US
online shoppers had abandoned shopping carts
multiple timesi. Another study by the e-tailing group
showed 64% of US online retailers experienced
cart abandonment rates of over 20% in 2009, with
nearly one-third of them reporting rates over 50%ii.

Even more alarmingly, 22% admitted that they
didn’t know what their abandonment rate is.

Consumers abandon etail shopping carts for a
number of reasons. High shipping charge, slow
delivery schedule, lack of customer support,
inconvenient time to purchase, and feelings of
insecurity are some of the more common reasons
people don’t complete their online purchases.
Many times the shoppers simply found it too easy
to walk away from an impulse purchase without
a salesperson there to encourage the sale. But,
whatever the reason, the results are the same.
Retailers are losing significant amounts of revenue
due to abandoned shopping carts.
                                                          Source: eMarketer’s article
                                                        “The Sad Tale ofAbandoned
                                                                   Shopping Carts”
                                                                     June 20, 2009
It is possible, however, to recapture a major portion of those sales. There are a number of tweaks you can
make to your website to discourage abandoned carts – PayPal published a great article entitled “10 Tips
to Reduce Cart Abandonmentiii” and Practical eCommerce offers tips in its article “Seven Ways to Reduce
Shopping Cart Abandonmentiv.” However, this white paper focuses on how you can use email remarketing
campaigns to re-engage shoppers and convert them to buyers.



When to Send
McAfee performed a recent study on what it
refers to as “digital window shoppingv.” Digital
window shopping is similar to shopping cart
abandonment except the shoppers return to
the websites and complete the purchases. It
analyzed over 160 million transactions and
found that the average time between first
visit and final purchase was 33 hours and
54 minutes. While the study isn’t tied directly
to email remarketing campaigns, it provides
valuable insight into the mindset of online
shoppers.

An email that is sent within 24 hours of the
                                                           Results of McAfee’s “Digital Window Shopping:
abandoned cart reaches customers when                             The Long Journey to Buy” report

they are still considering the purchase and
it can prompt them to take immediate action to complete the sale. However, you should test the timing of
the campaigns to see what works best for your audience; if possible track open times by subscriber then
deploy when customers are proven most likely to open your message




02
877.362.4556
www.listrak.com
03
                  What to Send
                  You must take a tactical approach to the design of your remarketing
                  campaigns. The tone of the email must be helpful and reassuring to the
                  recipient, and should include:
877.362.4556
www.listrak.com      •	 Pictures of the items left in the cart and links to product reviews

                     •	 Security icons proving online transactions are safe, such as
                        Verisign, Cybertrust, McAfee SECURE trustmark, etc.

                     •	 A toll free-number for your customer service department

                     •	 Links to your return policy and privacy policy

                     •	 An easy way to complete the purchase

                     •	 An unsubscribe link so recipients can opt-out of your re-marketing
                        campaigns without unsubscribing from your marketing list

                     •	 Personal information, such as the shopper’s first name

                  The emails can also include a notification that the cart will expire if action
                  isn’t taken or a limited time offer or special discounts. All of these items
                  can greatly increase the likelihood of a completed sale. Listrak studied
                  the sending habits of the Internet Retailer 5006 companies to look at
                  their shopping cart abandonment messages. It found that 23.81% of
                  the messages received linked directly to the abandoned cart, 45.23%
                  included an incentive with over half of them offering free shipping, and
                  60% were personalized with the shopper’s first name.

                  When creating your messages, you must approach the design with
                  caution. In the past, consumers raised concerns about being “watched,’
                  and it was generally accepted that remarketing campaigns should be
                  sent in a stealthy manner several days to two weeks after the cart was
                  abandoned. Forrester Research7 published a number of reports in
                  2001 and 2003 offering advice on these campaigns. Those concerns
                  aren’t as viable today as most online shoppers are aware of the web
                  analytics tracking their actions and most appreciate the convenience of a
                  saved shopping cart and an email reminder. But you still need to create
                  remarketing campaigns that the recipients will find useful. The emails
                  shouldn’t be too salesy or pushy, but the purpose must be designed to
                  get customers to complete the sale.
There are a number of different tactics and
types of campaigns you can use to re-
engage your customers. Email marketing
is the most versatile tool in your marketing
toolbox and it is easy to test different
campaigns to maximize your results. Here
are some examples and tips for creating a
successful remarketing campaign:

Reminders – A picture reminding shoppers
of what was left in their carts and a link that
makes it easy to buy can be enough of an
                                                                  Williams-Sonoma entices shoppers with a
incentive for many shoppers. These emails                                well-designed remind email

work best when they are designed to put
shoppers at ease. Remembering why people abandon carts in the first place – security issues, lack of
customer service or sales representatives, fear that the real item won’t be as nice as the one in the picture,
etc., the email should address all of these concerns by linking to product reviews, including security icons,
and offering additional ways to complete the purchase. These emails could also include an urgency notice
stating that the cart will expire within a certain timeframe to encourage shoppers to act quickly.

Special Offers – Some etailers are reluctant to
include a limited time offer in their abandoned
cart emails. They fear the customers will
share the information with friends and soon
all online shoppers will abandon purchases
and wait for the discount to arrive via email.
It is true that some customers may behave
that way, especially now as the economy
recovers; however, the additional revenue
you’re bringing in should significantly offset
the discount and make it worth your while.
If your average sale is $100, with $50 of that
being profit, and you sell 250 items each
day online, you’re making a profit of $12,500               Improvements Catalog incentivizes shoppers with a
                                                            coupon sent within 24 hours of an abandoned cart.




                                                                                              04       877.362.4556
                                                                                                   www.listrak.com
05
every day. However, if you can sell an additional 100 items each day at
10% off, you’re increasing your profits over 30% - even accounting for the
discounted price and the cost of deploying the additional email message.

Series of Messages – In case your first message goes unnoticed, you
can follow up a second and third time with other remarketing campaigns.        877.362.4556
Your first message could be a reminder of what was left in the cart, the     www.listrak.com
second message could be a discount, the third message could state that
the cart is about to expire, etc. You could even include an email offering
shoppers an easy way to re-order previously purchased items. These
emails should be designed to work together to achieve the common
goal, and you must be sure to monitor results closely to ensure shoppers
receive the right messages at the right time.



How to Send
Shopping cart abandonment emails rely on web analytics data and require
an integrated email marketing solution, dynamic message assembly, and
a behaviorally triggered messaging system. However, the messages can
be set up to run in the background automatically so all you have to do is
update the message template occassionally and monitor the results.




Listrak has the platform and expertise needed to send the most
sophisticated shopping cart abandonment campaigns. Working with you,
Listrak will provide strategy, implementation, creative design, support,
and campaign evaluation, to ensure your campaigns achieve your goals.
Contact us today to learn more.
About Listrak
Listrak is a full-service email marketing firm providing the solutions, services, and software to optimize the
value of email. Listrak combines strategy, service, creativity, and measurability to develop email marketing
that goes beyond the inbox to the individual to deliver the extra perfect in effectiveness and ROI. Listrak
provides engaging email marketing solutions for clients like Waterford, Movies Unlimited, Hitachi, Wolfgang
Puck, and Motorola. Its intuitive email platform is also available in an ASP model enabling marketers
to build one-to-one conversations utilizing dynamic content, split testing, geographical and behavioral
targeting, triggered and transactional email, all backed by detailed analytics and reporting.sdfsdff




i
 The e-tailing group provides expertise and research in e-commerce, online merchandising, multi-channel retailing,
category-specific selling strategies, industry benchmarks, and in-depth merchant knowledge. Read eMarketer’s
report on the e-tail group’s study here: http://www.emarketer.com/Article.aspx?R=1007156.

ii
 eMarketer’s core expertise lies in researching and sorting vast amounts of publicly available information, and
objectively compiling and analyzing this information into widely read reports, articles and newsletters.

iii
 PayPal is the faster, safer way to pay and get paid online. With more than 78 million active accounts in 190 markets
and 19 currencies around the world, PayPal enables global ecommerce. Read its cart abandonment article here.

iv
   Practice eCommerce provide down-to-earth articles and advice to help smaller businesses succeed online. Read its
shopping cart abandonment article here.

v
 McAfee is the world’s largest dedicated security technology company. Read its Digital Window Shopping report
here.

vi
 Internet Retailer provides knowledge and insight in the form of articles, conferences, guides, and research to the
eRetailing industry. It also ranks America’s 500 largest eRetailers and provides insights into their business strategies.

vii
    Forrester Research is an independent research company that provides pragmatic and forward-thinking advice to
global leaders in business and technology.




06  877.362.4556
    www.listrak.com

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Recovering lost sales through shopping cart abandonment strategy (Listrak) -Ene 2010

  • 1. Recovering Lost Sales 01 877.362.4556 through an Automated www.listrak.com © 2010, Listrak Shopping Cart Abandonment Strategy By Megan Ouellet, Director of Marketing January 20, 2010 onvenience no longer trumps price for online shoppers. Shoppers, in search of bargains, are taking the time to compare prices, shipping fees, return policies, and product reviews prior to making a purchase – and there is no easier way to do that than to add items to their online shopping carts. A study by PayPal and comScore found 45% of US online shoppers had abandoned shopping carts multiple timesi. Another study by the e-tailing group showed 64% of US online retailers experienced cart abandonment rates of over 20% in 2009, with nearly one-third of them reporting rates over 50%ii. Even more alarmingly, 22% admitted that they didn’t know what their abandonment rate is. Consumers abandon etail shopping carts for a number of reasons. High shipping charge, slow delivery schedule, lack of customer support, inconvenient time to purchase, and feelings of insecurity are some of the more common reasons people don’t complete their online purchases. Many times the shoppers simply found it too easy to walk away from an impulse purchase without a salesperson there to encourage the sale. But, whatever the reason, the results are the same. Retailers are losing significant amounts of revenue due to abandoned shopping carts. Source: eMarketer’s article “The Sad Tale ofAbandoned Shopping Carts” June 20, 2009
  • 2. It is possible, however, to recapture a major portion of those sales. There are a number of tweaks you can make to your website to discourage abandoned carts – PayPal published a great article entitled “10 Tips to Reduce Cart Abandonmentiii” and Practical eCommerce offers tips in its article “Seven Ways to Reduce Shopping Cart Abandonmentiv.” However, this white paper focuses on how you can use email remarketing campaigns to re-engage shoppers and convert them to buyers. When to Send McAfee performed a recent study on what it refers to as “digital window shoppingv.” Digital window shopping is similar to shopping cart abandonment except the shoppers return to the websites and complete the purchases. It analyzed over 160 million transactions and found that the average time between first visit and final purchase was 33 hours and 54 minutes. While the study isn’t tied directly to email remarketing campaigns, it provides valuable insight into the mindset of online shoppers. An email that is sent within 24 hours of the Results of McAfee’s “Digital Window Shopping: abandoned cart reaches customers when The Long Journey to Buy” report they are still considering the purchase and it can prompt them to take immediate action to complete the sale. However, you should test the timing of the campaigns to see what works best for your audience; if possible track open times by subscriber then deploy when customers are proven most likely to open your message 02 877.362.4556 www.listrak.com
  • 3. 03 What to Send You must take a tactical approach to the design of your remarketing campaigns. The tone of the email must be helpful and reassuring to the recipient, and should include: 877.362.4556 www.listrak.com • Pictures of the items left in the cart and links to product reviews • Security icons proving online transactions are safe, such as Verisign, Cybertrust, McAfee SECURE trustmark, etc. • A toll free-number for your customer service department • Links to your return policy and privacy policy • An easy way to complete the purchase • An unsubscribe link so recipients can opt-out of your re-marketing campaigns without unsubscribing from your marketing list • Personal information, such as the shopper’s first name The emails can also include a notification that the cart will expire if action isn’t taken or a limited time offer or special discounts. All of these items can greatly increase the likelihood of a completed sale. Listrak studied the sending habits of the Internet Retailer 5006 companies to look at their shopping cart abandonment messages. It found that 23.81% of the messages received linked directly to the abandoned cart, 45.23% included an incentive with over half of them offering free shipping, and 60% were personalized with the shopper’s first name. When creating your messages, you must approach the design with caution. In the past, consumers raised concerns about being “watched,’ and it was generally accepted that remarketing campaigns should be sent in a stealthy manner several days to two weeks after the cart was abandoned. Forrester Research7 published a number of reports in 2001 and 2003 offering advice on these campaigns. Those concerns aren’t as viable today as most online shoppers are aware of the web analytics tracking their actions and most appreciate the convenience of a saved shopping cart and an email reminder. But you still need to create remarketing campaigns that the recipients will find useful. The emails shouldn’t be too salesy or pushy, but the purpose must be designed to get customers to complete the sale.
  • 4. There are a number of different tactics and types of campaigns you can use to re- engage your customers. Email marketing is the most versatile tool in your marketing toolbox and it is easy to test different campaigns to maximize your results. Here are some examples and tips for creating a successful remarketing campaign: Reminders – A picture reminding shoppers of what was left in their carts and a link that makes it easy to buy can be enough of an Williams-Sonoma entices shoppers with a incentive for many shoppers. These emails well-designed remind email work best when they are designed to put shoppers at ease. Remembering why people abandon carts in the first place – security issues, lack of customer service or sales representatives, fear that the real item won’t be as nice as the one in the picture, etc., the email should address all of these concerns by linking to product reviews, including security icons, and offering additional ways to complete the purchase. These emails could also include an urgency notice stating that the cart will expire within a certain timeframe to encourage shoppers to act quickly. Special Offers – Some etailers are reluctant to include a limited time offer in their abandoned cart emails. They fear the customers will share the information with friends and soon all online shoppers will abandon purchases and wait for the discount to arrive via email. It is true that some customers may behave that way, especially now as the economy recovers; however, the additional revenue you’re bringing in should significantly offset the discount and make it worth your while. If your average sale is $100, with $50 of that being profit, and you sell 250 items each day online, you’re making a profit of $12,500 Improvements Catalog incentivizes shoppers with a coupon sent within 24 hours of an abandoned cart. 04 877.362.4556 www.listrak.com
  • 5. 05 every day. However, if you can sell an additional 100 items each day at 10% off, you’re increasing your profits over 30% - even accounting for the discounted price and the cost of deploying the additional email message. Series of Messages – In case your first message goes unnoticed, you can follow up a second and third time with other remarketing campaigns. 877.362.4556 Your first message could be a reminder of what was left in the cart, the www.listrak.com second message could be a discount, the third message could state that the cart is about to expire, etc. You could even include an email offering shoppers an easy way to re-order previously purchased items. These emails should be designed to work together to achieve the common goal, and you must be sure to monitor results closely to ensure shoppers receive the right messages at the right time. How to Send Shopping cart abandonment emails rely on web analytics data and require an integrated email marketing solution, dynamic message assembly, and a behaviorally triggered messaging system. However, the messages can be set up to run in the background automatically so all you have to do is update the message template occassionally and monitor the results. Listrak has the platform and expertise needed to send the most sophisticated shopping cart abandonment campaigns. Working with you, Listrak will provide strategy, implementation, creative design, support, and campaign evaluation, to ensure your campaigns achieve your goals. Contact us today to learn more.
  • 6. About Listrak Listrak is a full-service email marketing firm providing the solutions, services, and software to optimize the value of email. Listrak combines strategy, service, creativity, and measurability to develop email marketing that goes beyond the inbox to the individual to deliver the extra perfect in effectiveness and ROI. Listrak provides engaging email marketing solutions for clients like Waterford, Movies Unlimited, Hitachi, Wolfgang Puck, and Motorola. Its intuitive email platform is also available in an ASP model enabling marketers to build one-to-one conversations utilizing dynamic content, split testing, geographical and behavioral targeting, triggered and transactional email, all backed by detailed analytics and reporting.sdfsdff i The e-tailing group provides expertise and research in e-commerce, online merchandising, multi-channel retailing, category-specific selling strategies, industry benchmarks, and in-depth merchant knowledge. Read eMarketer’s report on the e-tail group’s study here: http://www.emarketer.com/Article.aspx?R=1007156. ii eMarketer’s core expertise lies in researching and sorting vast amounts of publicly available information, and objectively compiling and analyzing this information into widely read reports, articles and newsletters. iii PayPal is the faster, safer way to pay and get paid online. With more than 78 million active accounts in 190 markets and 19 currencies around the world, PayPal enables global ecommerce. Read its cart abandonment article here. iv Practice eCommerce provide down-to-earth articles and advice to help smaller businesses succeed online. Read its shopping cart abandonment article here. v McAfee is the world’s largest dedicated security technology company. Read its Digital Window Shopping report here. vi Internet Retailer provides knowledge and insight in the form of articles, conferences, guides, and research to the eRetailing industry. It also ranks America’s 500 largest eRetailers and provides insights into their business strategies. vii Forrester Research is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. 06 877.362.4556 www.listrak.com