Cart Abandonment Case Study DEMCO Silverpop Adobe
Transcript of Cart Abandonment Case Study DEMCO Silverpop Adobe
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© 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.© 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Lisa MolingE-Marketing Manager, DEMCO
Capturing Lost Revenue:How to Initiate a Cart Abandonment Email Program
1
Loren McDonaldVP Industry Relations, Silverpop
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Leverage Silverpop & Adobe Site Catalyst and recapture lost revenue
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Agenda
2 Why Cart Abandonment Email Programs?Why Cart Abandonment Email Programs?
4 Implementation ProcessImplementation Process
5 ResultsResults
4
3 Developing a Plan / ConsiderationsDeveloping a Plan / Considerations
1 About the PresentersAbout the Presenters
6 Lessons Learned & TakeawaysLessons Learned & Takeaways
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© 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Presenter
Lisa Moling, E-Marketing Manager 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.
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Presenter
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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
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© 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Presenter
Loren McDonald, Vice President of Industry Relations Leads industry leadership activities including more than 400 articles on email marketing,
blogs, educational sessions and Webinars. 27 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
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Presenter
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About Silverpop
A leading email marketing / marketing automation provider
Email Marketing Marketing Automation Transactional Email Social Connect Send Time Optimization Landing Pages Surveys SMS Adobe Partner
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Agenda
1 About the Presenters About the Presenters
9
2 Why Cart Abandonment Email Programs?Why Cart Abandonment Email Programs?
4 Implementation ProcessImplementation Process
5 ResultsResults
3 Developing a Plan / ConsiderationsDeveloping a Plan / Considerations
6 Lessons Learned & TakeawaysLessons Learned & Takeaways
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Capturing Lost Revenue
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Don’t let sales and customers slip away! Email Remarketing can capture revenue you missed the first time.
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Multiple Opportunities in the Funnel
300+ cart adds that never made it to checkout
Only 138 orders actually placed
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Huge Remarketing Opportunity
Huge Remarketing Opportunity – 300+ cart adds that never made it to Checkout, and only 138 actual orders were placed.
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— Multiple Sources “60–70%”
Abandoned Carts, Lost Revenure
Up to 70% of Shopping Carts are Abandoned before Checkout
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Do you deploy cart recovery emails?
Still quite a few who have not deployed this email remarketing technique.
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29%
14%
17%
Remarketing Emails
Yes
No, but plan to in 2010
No, but plan to in 2011
No, no plans
Source: Silverpop Benchmark Study, 2009
40%
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Percentage of Email Revenue
70%
50%
12% 10%
5% 5% 4% 2%2% 1% 1% 0.50%
30% 25% 25% 20% 20%
Source: Silverpop Benchmark Study
DEMCO
Cart Abandonment Recovery Email Programs:
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“How much money are YOU leaving on the table?”
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Agenda
1 About the Presenters About the Presenters
16
4 Implementation ProcessImplementation Process
5 ResultsResults
6 Lessons Learned & TakeawaysLessons Learned & Takeaways
2 Why Cart Abandonment Email Programs?Why Cart Abandonment Email Programs?
3 Developing a Plan / ConsiderationsDeveloping a Plan / Considerations
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Challenges and Opportunities
What is your cart abandoned rate? DEMCO below average at 30%
Will it be worthwhile to automate abandoned cart triggered email program opportunity to recover lost revenue? DEMCO did the math and
decided YES!
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Actually Challenge = Opportunity!
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Step 1: Develop a strategic email plan
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Promotional Emails
“Push” info to customers
New products Sales prices New catalogs Purchase incentives Contests/giveaways Info tips Trade show pre-
promotion
+…
More sophisticated & targeted email program – increased relevancy
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Pre- to Post-Purchase Triggered Email Types
Pre-Transaction
• Browse abandonment
• Cart abandonment
Purchase Process
• Order Confirmation
• Order status• Shipping notice• Shipment confirmation
• Trip preparation
Post-Purchase
• Satisfaction Survey
• Review request• Review notification
• Recommendation
• Replenishment• Repurchase• Upgrades
Relationship
• Bounceback• Account reminder
• Loyalty programs
• Account status• Purchase anniversary
Right time, right message!
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Step 2: Assess capabilities & articulate goals
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•“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
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Open Shopping Carts Program
Strategy Send an email that will prompt them to check out their order within a limited timeframe. Place order within the next week and will receive tiered promo or a free gift--test which gets better conversion.
Qty 25,000
Open rate 60%
Opens 15,000
CTR 40%
Clicks 6,000
Potential RR 15%
Orders 900
AOV $215
Potential Sales
$193,500
Sales/Email $7.72
Step 3:
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Develop Offer and Estimate Incremental Revenue Analysis demonstrates potential huge revenue win.
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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
Revenue/Ad Spend $10 $14 $18
Step 4: Demonstrate the ROI
22
Expecting ROI Positive in year 1!
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Abandoned Carts, Lost Revenure
Following up with abandoners by email can yield 25% or more conversion rates
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Message #
Days after cart filled
Message Offer
A 1 Courtesy reminder – you still have items in your shopping cart
None
B 3 Important notice – we have reserved these items for you
None
C 5 Special offer Free tote with offer
Step 5: Develop Creative Strategy
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Started with a 3-step messaging approach…
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Message A – 1 day after
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Message B – 3 days after
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Message C – 5 days after
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What about the “big brother” theory?
Timing Send out emails next day
after cart is abandoned IT programming – what was
feasible Market we serve – libraries &
teachers
Unsubscribe rates less than 0.2%
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In Your Face…vs…
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...Service Orientation
Human service tone
“Are you having trouble with your purchase decision?”
50% conversion rate
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Agenda
1 About the Presenters About the Presenters
5 ResultsResults
3 Developing a Plan / ConsiderationsDeveloping a Plan / Considerations
6 Lessons Learned & TakeawaysLessons Learned & Takeaways
2 Why Cart Abadonment Email Programs?Why Cart Abadonment Email Programs?
4 Implementation ProcessImplementation Process
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How do the systems work together?
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)
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Timeline
11 months start to finish
33
Develop email planResearch Email Service Providers (ongoing since fall)
Sign new contract ESP & Adobe Genesis integration
Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Sell internallyGet approval
Start w/new ESP
33
IT programming - Changes to cookie, cart ID in URL, carts from signing inCreative development
Create triggered rules & testing
JanLaunch
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Agenda
1 About the Presenters About the Presenters
34
3 Developing a Plan / ConsiderationsDeveloping a Plan / Considerations
6 Lessons Learned & TakeawaysLessons Learned & Takeaways
2 Why Cart Abadonment Email Programs?Why Cart Abadonment Email Programs?
4 Implementation ProcessImplementation Process
5 ResultsResults
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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
Step 6 & 7: Analyze Results & Determine Follow-up Cadence
Conversion rate is just as high on the first email as it is on the last email – without an offer
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Offer incentives on first email?
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Remarketing Emails
No offer
Combination of incentives
Free Shipping
Percentage Off
Source: Silverpop Benchmark Study, 2009Source: Silverpop Benchmark Study, 2009Source: Silverpop Benchmark Study, 2009
Majority of marketers choose no offer on first email
64%
24%
6%6%
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Abandoned Cart Emails
All Promotional Emails
Comparison
Open Rate 37% 8% 4.6x
Click-through rate
41% 14% 2.9x
Conversion rate
20% 5% 4.0x
Sales/email $7.46 $.08 97x
Results: compared to promotional emails
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These relevant and timely emails had significant results!
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2009 Abandoned Cart Indexed Results
$15.44 $15.39
$1.00
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
Abandoned Cart 1
Abandoned Cart 2
Broadcast Email
Revenue per email 15x versus broadcast emails
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Relative VolumeAbandon Cart
Emails0.3%
Promotional Emails99.7%
Cart vs Broadcast Emails
Relative Sales
Abandon Cart Emails18.6%
Promotional Emails81.4%
High % of sales relative to volume
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Agenda
1 About the Presenters About the Presenters
3 Developing a Plan / ConsiderationsDeveloping a Plan / Considerations
5 ResultsResults
2 Why Cart Abadonment Email Programs?Why Cart Abadonment Email Programs?
4 Implementation ProcessImplementation Process
6 Lessons Learned & TakeawaysLessons Learned & Takeaways
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Lessons Learned
Add in other abandons, not just those triggered by email
Added an opt-out flag for abandoned carts only
Don’t say “we’re going to empty your cart!”
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Testing & potential improvements
List the products in the email, with thumbnails
Testing offers ($ off, % off, different free gift)
Testing timing of offers (# of days, # of emails)
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11 Key Takeaways
1. Create your overall marketing plan
2. Build an ROI case
3. Use an email service provider that integrates with Omniture
Develop a Plan
4. See if you can identify other sources of conversion loss aside from email initiated (signed in, save cart, started order)
5. Go through ESP & integration processes
6. Work with IT group on finishing touches
7. Develop creative
8. Test, test, test
Launch
9. Measure results
10. Identify improvement areas
11. Expand to new areas of conversion optimization
Measure, Improve, Expand
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Leverage Silverpop & Adobe Site Catalyst and recapture lost revenue
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Q&A
45
Stop by booth #XXXFor…TBD
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www.silverpop.comTwitter: @Silverpop
Lisa [email protected]
Loren [email protected]: @LorenMcDonald
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Stop by booth in the Partner Showcase
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