I realize that in part the reason the rates are rising is that consumers are becoming more sophisticated with respect to shopping and comparing prices online. But that is no excuse for an e-commerce sites not to reach back. Just unacceptable.
Lets look at the facts.
First of all according to Optinmonster, abandonment rates have been on an upward trend since 2008, and are expected to continue to rise into the foreseeable future. See the chart below.
According to ReadyCloud, some of the top reasons consumers abandon their shopping carts an be seen below (multiple answers allowed):
- Extra costs = 61%
- Forced account creation = 35%
- Complex checkout = 27%
- Slow website load = 75%
- High shipping costs =55%
Based on a study by Moosend roughly 10% of those consumers that receive a follow up email regarding their abandon cart will ultimately purchase. So think of all the money left on the table for a given e-commerce site...even if they just recapture 10% of that lost revenue.
Lets run a few numbers.
Consider a modest retailer with sales of $500,000 annually and a 70% abandonment rate. What are they leaving on the table? Using the formula below they are leaving $1,166,666 on the table.
[$500K / (1 - .70) ] - $500K
Assuming they convert just 10% of those that abandoned with triggered emails (a realistic number), that yields $116,666 in saved revenue. This would certainly cover the cost of the automation of a trigger based email program. So, there is no excuse.
And, what is more surprising, for those retailers who are reaching out to customers, they are not doing the best job possible. Believe it or not, based on that same study by Listrak, only 25% of the trigger based emails linked back to the abandoned shopping carts and only 34% of the emails were personalized.
So what is an e-commerce site to do? My answer...test, test, test. The cost here is minimal, yet the rewards could be huge.
- Test the approach (soft or hard sell)
- Test the offer (discounts, free shipping)
- Test the timing (wait one or two or three days)
In fact the optimal timing of a follow up email is within 24 hours according to many experts including SmartrMail.
As Nike says, just do it!
Perry Drake, PhD