cart abandonment case study demco silverpop adobe

© 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


Leverage Silverpop & Adobe Site Catalyst and recapture lost revenue

© 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

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


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.

5


Presenter

6

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


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

7


Presenter

8

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


Agenda

1 About the Presenters About the Presenters

9



5 ResultsResults




Capturing Lost Revenue

10

Don’t let sales and customers slip away! Email Remarketing can capture revenue you missed the first time.


Multiple Opportunities in the Funnel

300+ cart adds that never made it to checkout

Only 138 orders actually placed

11

Huge Remarketing Opportunity

Huge Remarketing Opportunity – 300+ cart adds that never made it to Checkout, and only 138 actual orders were placed.

Tamara Gaffney

Need to clean up this graphic. It is fuzzy. Is this going to be a build? It is all flattened, so cannot ungroup.


— Multiple Sources “60–70%”

Abandoned Carts, Lost Revenure

Up to 70% of Shopping Carts are Abandoned before Checkout


Do you deploy cart recovery emails?

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

13

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%


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:

Tamara Gaffney

Not sure how to interpret this slide. What is it trying to portrait?


“How much money are YOU leaving on the table?”

15


Agenda


16


5 ResultsResults





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!

17

Actually Challenge = Opportunity!


Step 1: Develop a strategic email plan

18

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


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!

Tamara Gaffney

Can we incorporate this slide with the one before it? Or is this a second step?


Step 2: Assess capabilities & articulate goals

20

•“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


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:

21

Develop Offer and Estimate Incremental Revenue Analysis demonstrates potential huge revenue win.

Tamara Gaffney

Perhaps too many numbers on this. Should probably build with relevant information called out.


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

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Expecting ROI Positive in year 1!

Tamara Gaffney



Abandoned Carts, Lost Revenure

Following up with abandoners by email can yield 25% or more conversion rates


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

24

Started with a 3-step messaging approach…

Tamara Gaffney



Message A – 1 day after


Message B – 3 days after


Message C – 5 days after


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%

28

Tamara Gaffney

Lisa needs to fill in some data here.


In Your Face…vs…


...Service Orientation

Human service tone

“Are you having trouble with your purchase decision?”

50% conversion rate


Agenda


5 ResultsResults



2 Why Cart Abadonment Email Programs?Why Cart Abadonment Email Programs?



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)


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


Agenda


34





5 ResultsResults


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

Tamara Gaffney



Offer incentives on first email?

36

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%


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

37

These relevant and timely emails had significant results!

Tamara Gaffney

Is the take away correct?


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

$/Email

Abandoned Cart 1

Abandoned Cart 2

Broadcast Email

Revenue per email 15x versus broadcast emails


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


Agenda



5 ResultsResults





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!”


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)


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


Leverage Silverpop & Adobe Site Catalyst and recapture lost revenue


www.silverpop.comTwitter: @Silverpop

Lisa [email protected]

Loren [email protected]: @LorenMcDonald


Stop by booth in the Partner Showcase

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