Shopping cart abandonment handbook - Ignition one - 2015

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Transcript of Shopping cart abandonment handbook - Ignition one - 2015

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Abandonment. Even the word is ominous – and in the world of online sales, the challenge of cart abandonment is a real issue. According to the Baymard Institute, 67.95% of all filled shopping carts are abandoned. And in some verticals, like travel, the rate is even higher. So, why do potential customers abandon their purchases, and what can marketers do to keep them shopping or entice them to return to forgotten products?

The Shopping Cart Abandonment Handbook has the answers.

In order to minimize cart abandonment, it’s vital to understand why customers are leaving in the first place. The chart below illustrates the top reasons:

Part One: Cause and EffectUnderstanding the reasons behind cart abandonment

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Why Shoppers Abandon Their CartsJUNE 16, 2015

Many shoppers load up carts with no intent to purchaseRetailers that send event-triggered emails know that abandoned carts can be a gold mine. According to Listrak data from 2014, US retailers’abandoned cart email campaigns had an average open rate twice as high as the average, a click rate four times the average and a conversion rate more than five times the average. The average order value on such email campaigns was higher than for any other trigger except “back in stock” notices.

Triggered emails aren’t the only way retailers can capture shoppers who have abandoned their carts—but enticing them to buy may mean understanding why they left in the first place.

According to comScore research from April 2015, many internet users not only abandon carts, but specifically add items to a cart with no intention of ever making a purchase.

The most common reason for behaving this way was to check on shipping fees—with unexpected shipping costs the No. 1 reason in an October 2014 Wingify survey as well. More than half also said they were looking to find out the total cost of their order, most likely because they were adding multiple items to a cart, or perhaps because of discounts taken in the cart.

Abandoned cart emails, as well as other shopping cart abandonment follow-ups, must provide more than a product image and details. Offering a solution to why a shopper ditched his or her cart, such as a limited-time free shipping offer for those who left upon seeing a shipping total, should also come into play.

At first glance, it’s easy to see that the top reasons are cost-related. Customers wanted to estimate outside and uncontrollable costs (i.e., taxes and shipping fees), they wanted to compare prices elsewhere or they decided the overall price was too expensive. These are all causes that ultimately lead to people leaving without buying.

However, most of the highest reasons on the list can be likened to a customer that was “just browsing.” We’ve all used that line before, whether because we’re just taking a quick look around a store or because we don’t want a salesperson to bother us. But a customer who is “just browsing” and has gone far enough to place items in their cart is a customer who, ultimately, has high potential of making a purchase. It’s just a matter of reaching them in a timely and effective manner.

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Part Two: Come Back to MeWinning back potential customers

So, it’s happened. A customer has abandoned their shopping cart, and it’s time to figure out how to win them back. Rather than wishing, wanting and hoping for a purchase completion, increase the odds of making it happen with these tips.

Tip 1: Oh, Won’t You Stay?

It may seem obvious, but when a customer is about to navigate away from your website, it’s the ideal time to reach out to them and incentivize them to stay. This is where accurate web data becomes more vital than ever, including an algorithm that automates timing of outreach with appropriate offers based on interest, behavior and level of engagement with brand. Knowing exactly when to reach out can make all the difference.

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Marketing technology can automate your ability to identify a person’s intent to leave, then provide re-win solutions. For instance, the IgnitionOne platform calculates each individual’s propensity to leave the buying funnel and can automatically intervene when the system senses signs of cart abandonment, providing customers with messaging and/or incentives to make a purchase and/or convert. The algorithm works like this:

A visitor comes to the site and starts to browse.

The Igni�onOne tool starts profiling the customer’s behavior.

When abandoning the shopping cart a variety of messages and interac�on possibli�es can start.

The main input for the leave intent is mouse behavior. the tool also looks at the direc�on, environment and velocity. Igni�onOne calculates if someone is intending to leave the sales funnel.

An automated personalized message (through email or web content) is generated to a�ract the poten�al customer back to the shopping process.

This simplifies the customer’s life and increases customer value.

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Tip 2: You’re So Far Away

If a customer has already navigated away from your website and left their shopping cart behind, it’s time to remind them of what’s waiting for them. It’s important at this stage to be as specific as possible with each individual customer based on the data you have available. For example, an email with the subject line “Items Waiting in Cart” is less likely to do well than an email with a subject line that includes your customer’s name and a description of something in their cart, “Paul, what about that camera you wanted?”

Likewise, paid media should also reflect a customer’s specific cart, serving up ads with the images of the products they were considering. It’s important to engage in A/B testing when pushing out this creative to determine what language, creative and cadence works most effectively.

Tip 3: Give Me Something to Believe In

Go ahead – incentivize. Since customers often abandon carts due to unexpected costs, it’s worthwhile to consider what types of incentives may work best in luring them back. For example, setting up a discounted shipping opportunity for customers visiting your website from outside of a certain radius or time window may soften the blow of shipping sticker shock. Additionally, it creates the feeling of an exclusive deal. Come back now, and you’ll save money. Wait, and you risk spending more.

Another opportunity to incentivize comes in the form of offering up discounts that can be used on later purchases. For example, an email that gives the customer the opportunity to buy within the next 24 hours, and get 30% off their next purchase. This also creates a cycle in which the customer is more likely to become a repeat buyer, as they don’t want to let their incentive opportunity go to waste.

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Tip 4: Your Friendly Neighborhood Marketer

Knowing the location of your customers doesn’t just allow you to set up shipping incentive perimeters, it also gives you the opportunity to reach them with messaging that’s geographically relevant. For example, if a customer in Chicago abandons their cart in November and it includes winter boots, you can respond directly with a relevant message about the coming winter, and remind the customer of their need for the item they abandoned.

Likewise, if data points to a customer planning a trip, you’re able to not only remind them of the items left behind in their cart, but suggest additional items as well (if someone is considering purchasing towels and a bathing suit, it would be appropriate to suggest flip flops and sunglasses in a follow-up email).

Score-powered Facebook Website Custom Audiences provides an excellent way to connect with those cart-abandoning customers on an individual level, especially when you use what you know to influence the content served. For instance, knowing what items your customer left behind, you can tie those item categories into their sponsored newsfeed. Using Facebook powered by IgnitionOne Engagement Scoring, brings a new level of relevance and increase conversions. You can also coordinate that with an email outreach, website or other campaign to further incentivize a customer. For example, “Check your inbox for a special discount code” – this will help the customer continue their journey through another platform.

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Tip 5: Get the Picture?

Whenever you’re faced with cart abandonment, be sure to look at the big picture. Statistics show that many factors contributing to abandonment are site-based, so test out your digital experience. It’s important to go through quality assurance on desktop, mobile and tablet to confirm that no issues are present that could repetitively turn customers away. Even the best marketing incentive tactics can’t tempt back a customer who hasn’t been able to successfully navigate your website or find the Buy Now button. Work with your IT team to be certain of optimum performance (speed and clarity across all devices) so you can rest-assured that when a customer returns to their cart, they’ll have a seamless experience.

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IgnitionOne is a global marketing cloud leader. The company’s Digital Marketing Suite (DMS), with a powerful customer data management platform (DMP) at its core, simplifies life for marketers through an integrated suite of solutions that significantly improve digital marketing performance across all devices. The DMS encompasses algorithmic media management across channels such as search, programmatic display, mobile, email and social; advanced data management; user scoring; lead optimization, and website personalization. With a global footprint of over 450 employees in 17 offices across 10 countries, IgnitionOne is one of the largest independent marketing technology companies in the world.

IgnitionOne lights the customer journey with comprehensive data management and engagement scoring across channels and devices. IgnitionOne currently scores over 300 million users monthly in 75 countries and powers more than $30 billion in revenue each year for leading brands, including General Motors, CenturyLink, Bridgestone, La Quinta and Fiat, as well as advertising agencies such as 360i, GroupM and iProspect.

For more information and handy resources like this handbook, please visit http://www.ignitionone.com, follow the company on Twitter @IgnitionOne or read our blog at http://www.digitalmarketingsuite.com.

Copyright © 2015 IgnitionOne, Inc. All Rights Reserved.

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