the science of shopping cart abandonment
DESCRIPTION
Why do visitors abandon shopping carts? What are their motivations? What can we learn by segmenting abandoners based on behavior? How can email remarketing work to recover abandoned shopping carts? Drawing on new primary research which gives fascinating new insights into online buyer motivations, this presentation suggests practical techniques that can be applied to prevent abandonment and recover abandoned shopping carts.TRANSCRIPT
The Science Of Shopping Cart AbandonmentCharles Nicholls
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About
Charles Nicholls Chairman, Conversion AcademyFounder, SeeWhyChief Research & Strategy Officer
@webconversion
About SeeWhy• The real time shopping cart recovery service
• Best practices education• Primary research in ecommerce
@SeeWhyInc
Why Visitors Abandon
A single track view of conversion
5
Conversion is a numbers game:
Get lots of trafficGet enough to convert
Right?
The problem with one track conversion thinking
6
Less than 1% of new visitors will go straight to buy
More than 99% fall off your single track
Common Perception
Abandonment = Bad?
About our research Research study in August 2011 More than 600,000 individual visitors More than 250,000 transactions
The multiple paths to conversion
8
Abandonment is part of the purchase journey
What do you do to nurture fragile new leads &
first time customers?
Why 71% of shoppers say they abandon
#1 Price #2 Not ready to buy
Males:
More likely to compare prices
Less likely to abandon
Females: • More likely to save products for later • Take longer to buy• Even more sensitive to shipping and
handling costs
Source: Forrester
Design remarketing campaigns to address Price and Timing objections
Takeout
Top converting traffic sources
• Based on traffic arriving at the shopping cart
Source: SeeWhy n=63,507
Source: SeeWhy n=63,507
Develop strategies to capture more email addresses
Takeout
Google: ‘top traffic seewhy’ orhttp://seewhy.com/blog/2011/05/18/website-traffic-source-analysis/
Abandon Behavioral Patterns
Recovery rate of abandoned shopping carts is very different based on behavioral segments
Average abandons per purchase is 1.3, rising to 2.2 following a recent purchase
Recovery Rate 18%
Recovery Rate 48%
Recovery Rate 57%
Avg. 2.4 in 28 days
Source: SeeWhy n=179,907
Abandoning can be part of the purchase cycle
Takeout
Abandonment pattern within 28 days
Impact of Cart Size
$1-$100 $101-$250 $250-$300 $300-$250 $350-$400 $400+
Source: SeeWhy 8-11
Abandonment Rate by Cart Value
Detail on $1 – $200 Carts
Check shipping costs for low value carts
Offer free shipping at $99
Takeout
Those who don't buy initially:
Average time delay between first visit and purchase is 19 hours But 72% will buy in the first 12 hours
Average Time from First Visit to Purchase
Source: SeeWhy and ScanAlert
Start remarketing as soon as they abandon – the first 12 hours are the greatest opportunity
Takeout
The Impact of remarketing
No Remarketing
Nu
mb
er o
f ab
and
on
ers
retu
rnin
g
2x - 3x more abandoners will buy when remarketedRemarketing's biggest impact will be in the first 12 hours.
Takeout
On average
8% will return to
buy
With Remarketing
On average, an additional
26%
will return to buy when
remarketed
18% additionalrecovery
What You Can Do About It
Remarketing in Action
Re-considers the purchase
Individual website visitor
Adds item(s) to
their cart...
...and abandons without
purchasing
Visitor clicks through the
On average
26% Of identified
abandoners will convert
2 31 Real time API
On average
72%
will abandon
Follow up immediately with a 1-to-1
email campaign
Guthy Renker Proactiv Campaign
Immediate
23 hrs after
6 days, 23 hours after
Typical ‘Starter’ Campaign
Subject line: ‘Oops! Was there a problem with your cart?’
Immediate
Subject line: ‘Free exchanges on your order at LuckyVitamin’
Subject line: ‘Save 25% on your order at LuckyVitamin’
23 hours 6 days & 23 hoursRemind
Reassure
Promote
Heatmap predicts where the eye scans
Best practice example: NordicTrack
1. Relevance Timing Based on their web session
2. Value Service Link back to the cart Contact numbers etc
3. Call to action Clear Value based
Make it personal: Relevance = ROI
Product Detail Page Remarketing Email
Visual connection to the websiteDetails of the product abandonedStay focused: Don't distract the abandoner
Focus on the product Large image Product name Review stars
Free shipping call to action (with club membership)
Columbia Sportswear
Enhances brand relationship
Strong focus on 1-to-1 service
Personal shopper offer
Image of the item abandoned
Prominent call to action
Minimum cart value of $150 to qualify
Any observations?
Impact of skin tones and faces
http://usableworld.com.au/2009/03/16/you-look-where-they-look/
CSR image is too strong
Distracts from the primary call to action
Call to action button not strong enough
Alternate Route – No CSR
The impact of highly personalized content
Test of a 3 step email remarketing campaign, measuring lift in revenue recovered:
2.6%
33.2%
Batch:
Single email at +24hours
Real time:
Single email sent immediately
Real time gives:
A/B test comparing Batch to Real time
105% more revenue
+66% AOV
+30% Recovered
Carts+105
% Revenue
Real time tracking enables:
Multiple campaign steps (total 3 in this test)
Real time + multi stage gives:
A/B test: Real time + Multi Stage
412% ROI
+201%
Revenue
Impact of Step 2 and 3
Pitfalls to watch out for
Staying in step Synchronize remarketing with customer activity Batch transfers of data get out of step
Promotions Use promotions on the last of a sequence Use behavioural targeting to focus promotions on those
unlikely to buy anyway
Optimize Remarketing is part of your conversion path Don’t ‘set and forget’
Q&A
You’ve heard the story...now read the book
30 pages of insight into online buyer behavior
Tips and techniques to drive conversions
Request a copy by emailing us at [email protected]
Charles Nicholls [email protected]
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