Moving Upstream on Cart Abandonment

After speaking at a conference on the topic of email automation for your online store, I was approached by more than a dozen people with the same question: “If someone abandons their cart, how can the store stay in touch with the shopper?” It’s impossible to contact anonymous visitors—their anonymity means you’ve not yet collected their email addresses and thus you have no way to reach them

After speaking at the WooCommerce Conference on the topic of email automation for your online store, I was approached by more than a dozen people with the same question: If someone abandons their cart, how can the store stay in touch with the shopper?

It’s impossible to contact anonymous visitors—their anonymity means you’ve not yet collected their email addresses and thus you have no way to reach them. Perhaps they were just price shopping or researching. Perhaps they were distracted before completing their purchase. Perhaps they didn’t like your site’s shopping cart experience. Whatever the reason, they’ve slipped away, and you’ve been left with the promise of a sale that’s not yet complete.

According to Business Insider, this is the case with 68 percent of shoppers—those who leave their carts before checking out—and about $4 billion in abandoned carts the world over. The good news is they also estimate up to 62 percent or $2.52 billion is recoverable with automated marketing. Does that mean you simply need to give up hope of reaching those wallets and focus on the known visitors? Well, no. It simply means you need to develop a strategy for teasing away those email addresses. It means you need to move your request upstream.

There are myriad possible tactics of this strategy, but the path you choose depends upon your business, your product and the tools you have for implementing your ideas. No matter which path you choose, be prepared to A/B test like a madwoman until you’ve found the top three triggers and use all three. Don’t settle for just one approach. Meet your potential customers with the sign-up tool of choice—which means giving them options. Let’s look at some ideas. I’m going to call these interrupters, but I’m pretty sure I’ve borrowed the phrase from someone brilliant:

Interrupters can be any sort of dialogue, window, link or button interrupting the user’s shopping excursion and redirecting them to a simple (usually pop-up) form collecting only their email addresses, for instance:

  • Interrupt the product-browsing session with a tool enabling them to upload a photo of a room they are decorating in which they can drag and drop their selected item into place. It doesn’t have to be a perfect UX, just provide them with a rough idea of how the Egyptian vase they added to their cart might look next to their lime-green sofa.
  • After the first product has been added to the cart, interrupt with a message such as, “Wow! That’s a great find! We can save it in your cart for as long as you like. Let’s give your cart a name. Please type your email address.” You could extend this process with a dialogue after each product, displaying different messaging or, go for funny, and provide humorous commentary. Be sure to also provide a checkbox for prevent the message from displaying again.
  • Provide an online calculator allowing them to figure out how much of a product to buy. Let them use the calculator and then offer to save their work using just their email address. You could also offer to email their calculations or illustrations to the address they provide. We used this approach on our personal profiler – they can use the profiler online all day long, but if they would like to print their profiles, we will send the PDFs to their inbox.
  • Offer to send them links to download the installation instructions, case study, or watch a video.
  • Offer to save their cart when they click the browser’s close button.

Be sure you are interrupting your shopper with something of value. Popping up a subscriber window might be a bit annoying on its own, but a subscriber window with an offer of free shipping on the order they are building is going to win some favor.

According to a CouponCabin.com survey, 73 percent of U.S. adults are more likely to shop online where free shipping is offered, and, further, 93 percent of online shoppers said they would spend more if free shipping were offered.

Resist the temptation to interrupt visitors with a long form, or even your regular check out form, or you risk adding to your abandonment rate. Also, be sure to pass the information you collect directly into their account page—don’t make them provide you with their email address again if they continue the checkout process.

Interrupters can easily become annoying, so go slowly and don’t get greedy. You want to be able to capture as many anonymous visitors as possible, but there’s also great potential to drive shoppers away at the same time. It’s a delicate balance, but well worth the effort. Remember, there’s $4 billion dollars out there, and some of that can be yours.

Emails That Target Customer Behavior Without Using Big Data

The ever increasing volumes of data used by companies like Target, Walmart and Amazon to carefully target their customers is cumbersome and difficult to manage. Analyzing patterns to find the right trigger that will motivate an individual to buy requires gifted statisticians that combine art and science into marketing magic. But what if you are not quite ready to use big data in your business? Can you still reap some of the benefits?

The ever increasing volumes of data used by companies like Target, Walmart and Amazon to carefully target their customers is cumbersome and difficult to manage. Analyzing patterns to find the right trigger that will motivate an individual to buy requires gifted statisticians that combine art and science into marketing magic. But what if you are not quite ready to use big data in your business? Can you still reap some of the benefits?

Fortunately for companies that don’t have a team of statisticians standing by, customer behavior and activity can be used to increase sales without the challenges that come with big data. It’s as simple as watching for specific activity or changes in customer behavior and being prepared with a customized response to encourage people to buy.

If this is your first venture into customer behavior marketing, start with the people who are the easiest to identify. Seasonal and discount shoppers are relatively easy to recognize because they have very specific buying patterns. Creating customized marketing for them increases their response and reduces costs. The dual benefits make this a logical place to begin.

Seasonal shoppers are the people who purchase items at specific times of the year. Traditional RFM (recency, frequency, monetary value) analytics flag them as top buyers shortly after a purchase and then systematically move them down the value chain. When they place the next order, they move back to the top and flow down again. Creating a marketing plan that sends materials when they are most likely to buy reduces marketing costs without affecting sales.

Discount shoppers only buy when there is a sale. This segment can be further divided into subsets based on how much discount is required to get the sale. If the marketing is properly tailored, this group of people serves as inventory liquidators. Minimizing the non-sale direct mail pieces they receive and heavily promoting sales increases revenue while reducing costs.

Both groups respond well to promotional emails. Capturing email addresses should be standard operating procedure. It is especially critical for seasonal and discount shoppers because they tend to be more impulsive than other segments. The emails that remind seasonal shoppers that it is that time again and tell discount buyers about the current sales are economical and effective.

The next step after targeting shopper segments is adding specific product category information based on the individual’s shopping history. When my daughter was younger, my shopping behavior with American Girl included two orders per year for regular priced items and sale purchases in between. The two full price orders were placed just before Christmas and her birthday. Sale purchases were impulse driven and triggered by emails announcing clearance items.

Bitty Baby was the category of choice in the early years of buying from American Girl. The shift to the character dolls didn’t happen until my daughter was nine. She received her first Bitty Baby at two. During nine years of systematic purchases, no one recognized that I only ordered certain things at specific times. How much would your company save if your marketing was tailored to customer purchasing patterns?

What about targeting people who haven’t purchased from a specific category?

The ability to predict what people want before they know it is one of the advantages of analyzing trends and activity in big data. Before moving to that level, start with the information that shoppers are providing. This trigger email from Amazon was sent two weeks after I searched for soda can tops on their site without purchasing.

The email avoids the creepy factor by saying, “are you looking for something in our Kitchen Utensils & Gadgets department? If so, you might be interested in these items.” Instead of, “because we noticed that you spent 14.34 minutes searching for soda can tops you may be interested in the ones below.”

The best practices included in this email are:

  • It doesn’t share how they know that the shopper is interested in a specific category or item.
  • The timing from the original search to email generation is long enough to allow time to purchase, but not so long the search is forgotten.
  • It makes accessing the items easy by providing multiple links.
  • The branding is obvious with links to my account, deals and departments.

Targeting customer behavior can become very complicated very quickly. Starting simple with specific segments and activity allows you to test and build on the lessons learned. The return on investment is quick and may surprise you.

Holiday Paid Search Analytics Reveal Insights Into Today’s Cross-Channel Shopper

When analyzing early holiday paid search data, it’s readily apparent that shopping is truly a cross-channel endeavor. For instance, the majority of this year’s Black Friday shopping occurred in-store, but consumers used search engines in droves before setting foot in a store. Search helped shoppers map out their in-store Black Friday strategies, informing them exactly where and when they could find the best deals on the products they wanted.

When analyzing early holiday paid search data, it’s readily apparent that shopping is truly a cross-channel endeavor. For instance, the majority of this year’s Black Friday shopping occurred in-store, but consumers used search engines in droves before setting foot in a store. Search helped shoppers map out their in-store Black Friday strategies, informing them exactly where and when they could find the best deals on the products they wanted.

Search played a major role in driving in-store traffic this Black Friday. Performics tracked a huge spike in Google paid search clicks for its clients on both Thanksgiving and Black Friday. Paid search clicks increased 87 percent year-over-year on Thanksgiving and 65 percent year-over-year on Black Friday. Additionally, this year saw the most mobile paid search clicks and impressions ever seen on Black Friday — 400 percent more than 2010.

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For the second consecutive year, Black Friday clicks surpassed Cyber Monday clicks. The adjacent graph shows three primary spikes in 2010 and 2011 fourth quarter paid search clicks. Black Friday represents the biggest spike, with Thanksgiving and Cyber Monday (which were close to each other) following behind.

Cyber Monday has historically been the biggest online sales day of the year, not Black Friday. In terms of online sales, Black Friday historically ranks behind Cyber Monday, Green Monday (the second Monday in December) and Free Shipping Day. Black Friday drives the most clicks, but the fourth most online sales.

This indicates that consumers use search engines heavily on Black Friday to discover the best in-store deals. Post-recession shoppers are researching on their computers and mobile devices more than ever to find the right combination of quality and price. The rise of mobile, highlighted by the 400 percent year-over-year increase in Black Friday mobile clicks, is the biggest indicator of true cross-channel shopping.

Not only are on-the-go consumers searching for your store locations, but they’re also conducting competitive price searches and looking for product information on their phones/tablets while in your store. According to Performics’ 2011 Social Shopping Study, 62 percent of consumers perform competitive price searches on their mobile devices while in a retailer’s store and 41 percent look for product information.

To capitalize on this cross-channel shopping behavior during the holiday season and beyond, marketers should do the following:

  • integrate online and offline promotional planning;
  • create strong mobile websites;
  • use paid search extensions (e.g., addresses, phone numbers, click-to-call) to aid searchers looking for your store;
  • let searchers know that products are in stock in your stores;
  • ensure visibility in mobile search for keywords likely to be used by shoppers searching for your store while on the go or in-store; and
  • create comprehensive local paid and organic search campaigns.

Marketers should invest in analytics to understand exactly how search marketing affects offline sales. Uncovering insights through data will help you best allocate budgets and create marketing strategies to maximize cross-channel performance.