Abandoned Cart Emails: Calculating Abandoned Cart Revenue

Posted April 29, 2019

Disclaimed cart emails assist the retail businesses to redeem sales from the people that have abandoned their shopping carts. The purpose behind writing this precedent is to guide anyone looking for ways to get started as well as to help them learn ways through which they can boost their chances to achieve most success straight away.

The notion that a vast majority of online customers enter into the site and engage to the point of checking out and instead they just abandon their shopping cart is very alarming and stressful.

The Baymard Institute known for being an e-commerce practicable reflect tank has successfully collected and compiled data related to cart abandonment for the different industry sources for over the past 9 years. The bad news that has been observed from that data is that despite numerous technological as well as e-commerce advancements made in the consumer experience design over the years, the average rate of cart abandonment still remains constant.

Industry gurus describe cart abandonment as a problematic issue that costs the online retail businesses billions of dollars as a loss from their earnings every year. The good news is that this is an overestimation. It is part of the human nature to explore or probe before purchasing while doing the shopping online. There is no available technology, Shopify terminal, or a perfectly conducted online shopping bag in the entire world that is able to get rid of it. Therefore, online retailers should come to terms with the fact that cart abandonment is one natural phenomenon concerned with the e-commerce purchasing cycle.

What can be is that the online retailers change their perspectives and see this issue of cart abandonment something as conversion rate maximization as well as a consumer service opportunity for them as e-commerce experts.

How can this be done as you may be wondering? By taking an approach that is customer-centric. Customers provide online retailers with an astonishing purchase making intent when on the other hand they are just abandoning a transaction made at the website. Consider the thought of cart abandonment emails as a second opportunity to continue with the conversation being carried out with this extraordinarily significant group of new possible customers.

This can be done by creating a cart abandoned email initiative, below mentioned one of the things may result because of a follow up:

  1. There is going to be successful order placement 10-15% of the time.
  2. Online retailers will find out the reason behind consumers abandoning their carts and they can utilize this information proactively to improve their buying process.
  3. Online businesses will mark a great impact on their customers as well as they will be known to provide great customer service.
  4. Online retailers can also utilize humor to create a healthy, positive connection with their prospective consumer.

This precedent is written to help the on lie retailers achieve these four outcomes through every cart abandonment email that they send in. in addition to this, they will also be able to learn the rate of cart abandonment on their website as well as they can also identify a larger percentage of consumers purchasing on their website. Along with this, they will also be able to calculate the supposed ROI of an abandoned cart email plan.

Why do consumers abandon their carts 70% of the time?

Thought the abandonment of shopping carts is a natural behavior that cannot seem to be eliminated, although steps can be taken to better understand the reason behind this behavior. The study generally used as a reference source was carried out by WorldPay. A total of 19000 customers were asked the reason behind why they abandon their carts at e-commerce websites without checking out with paying.

  • Presented with unanticipated cost – 56%
  • Only browsing – 37%
  • Located better costs of products elsewhere – 36%
  • Overall cost too expensive – 32%
  • Decided against purchasing – 26%
  • Website coursing too difficult – 25%
  • Website crashing – 24%
  • Processing was too slow – 21%
  • Exorbitant payment security checks- 18%
  • Uneasiness about payment security – 17%
  • Delivery options unsuited – 16%
  • The website has timed out – 15%
  • Price displayed in a different currency – 13%
  • My payment option was not accepted – 11%

As it can be articulated from above that five out of the top ten reasons presented above for abandoning the cart at an e-commerce site are price or cost related. The other reasons describe the customers being unsure if they wanted to purchase or not yet:

  • Presented with unanticipated cost
  • Only Browsing
  • Located better costs of products elsewhere
  • Overall cost too expensive
  • Decided against purchasing

Below mentioned are the strategies that can help the online retailers to never again miss out any order due to a price concern or unanticipated shipping charges (most customers expect the shipping to be free these days). They can also learn how to target those ‘only browsing’ consumers and discover the million dollar cognizance to why the consumers are not purchasing from their website in the first place.

How to Calculate the Cart Abandonment Rate of your Online Store?

There are numerous ways through the online retailers can calculate how the consumers go through every page of the website before checking out and can see where the actual dropping off of the cart occurs. Using Google Analytics as a free of cost tool is one common approach in a combination with Mixpanel or Rejoiner which are some other specialized analytics. Most solutions provided by these tools are collected reports on how all the consumers are moving through the website, but a special feature making a difference can be the identification of an anonymous user and an identifiable user. Shortly more ways will be covered providing ways to identify a larger percentage of consumers visiting the site.

https://rejoiner.com/img/ebook-pages/abandoned-guide/abandon-guide-funnel.png

Calculating Cart Abandonment Rate

For those that are just getting started, creating a conversion funnel with the Google Analytics is a very simple task that can help online retailers to organize a baseline rate for cart abandonment. It not only just empowers the online retailers to understand but also when the customers abandon their carts during the conversion process, it can also allow them to measure the rate of cart abandonment over time.

When to come to establishing the reports for the online shopping site there are two central ideas available, a funnel and a goal.

FEW GOAL EXAMPLES PRESENT ARE:

URL Destination

  • Example – Duration of the confirmation page (on page/site)
  • Example – Number of pages or screens visited on the website for 5 minutes
  • Example – 5 pages visited by the user as User Event
  • Example – Number of times Buy Now Button clicked

A FUNNEL exhibits the pathway followed by the consumer to reach retailer’s goal. To measure cart abandonment rate, a URL destination is used as the retailer’s goal. Generally, the URL destination is the order confirmation page or the thank you page after the customer has completed their order.

To begin with the creation of funnels for the website, there is a short video put together as a part of this precedent that will be helpful to walk the retailer through the process. We hope it proves beneficial. If the video is not helpful, read the guide for the guide consists of written instructions as well.

How To Use Google Analytics In Setting Up A Shopping Cart Funnel

In order to understand this example, we have used a multi-step checking out process as our pathway to a finished order.

  1. Begin with signing into the Google Analytics account. In the bottom left-hand corner, there will be an ADMIN option click on that.
https://rejoiner.com/img/special-pages/cartguide/ga/ga-admin-button.png
  1. Select the profile which will be used to set up the funnel for followed by clicking on GOALS.
https://rejoiner.com/img/special-pages/cartguide/ga/ga-goals-button.png
  1. To add a new goal, click on the option of + NEW GOAL.
https://rejoiner.com/img/special-pages/cartguide/ga/ga-newgoal.jpg
  1. Next, create the CUSTOM template and click on the CONTINUE option.
https://rejoiner.com/img/special-pages/cartguide/ga/ga-custom-template.png
  1. Next, you are required to set up the GOAL DESCRIPTION as well as the TYPE of the goal needed to be tracked. Name the goal COMPLETED ORDER and select DESTINATION for cart abandonment lastly click on CONTINUE.
https://rejoiner.com/img/special-pages/cartguide/ga/ga-description.jpg
  1. Now add in the URL of the last page visited in the sales funnel – where you require the consumers to the last end up – in the DESTINATION EQUALS TO field. Think about the confirmation page.
https://rejoiner.com/img/special-pages/cartguide/ga/ga-destination.gif

IMPORTANT NOTE:  You will be required to select the DESTINATION BEGINS WITH for the URL if the website adds a number a dynamically at the end of the confirmation page.

https://rejoiner.com/img/special-pages/cartguide/ga/ga-destination.jpg
  1. Now turn ON the funnel option. Perform a test checkout just as the consumer would do, noting down each step as you go. Add additional steps to the funnel leading to the confirmation page. Turn the required option OFF the first URL*.
  • Cart page (for example: yoursite.com/checkout/cart/)
  • Check out page (for example: yoursite.com/checkout/onepage/)
https://rejoiner.com/img/special-pages/cartguide/ga/ga-funnel.jpg

IMPORTANT NOTE: Consumers will only be allowed to enter the sales funnel in step one.

  1. SAVE the new goal.
https://rejoiner.com/img/special-pages/cartguide/ga/ga-savegoal.jpg
  1. Over the next 24 hours, the funnel report will then collect the data.
https://rejoiner.com/img/special-pages/cartguide/ga/ga-goalset.jpg
  1. CONVERSIONS present in the left-hand sidebar of the Google Analytics can be clicked on to view the funnel report, then GOALS > FUNNEL VISUALIZATION
https://rejoiner.com/img/special-pages/cartguide/ga/ga-conversions.jpg

The result at the end will look like this below:

https://rejoiner.com/img/special-pages/cartguide/ga-funnel.jpg

How to locate a larger percentage of the visitors

Stores such as the e-commerce stores where only a little percentage of the customers make it to the checking out process and an even little amount is registered, this depicts as quite a challenge (less number of people to follow up as they are not unknown, as well as their email addresses, are also not registered).

There are various strategies that can be sued to identify customers before they get a chance to check out, therefore, having the opportunity to acquire a higher number of people to follow up with the cart abandonment plan:

TRIGGERED OFFERS/POP-UPS

Triggered pop-ups can get the attention of the anonymous potential consumers to opt in. this creates an identification opportunity much earlier than in the buying process. On-site pop-ups can be paired with the cart abandonment email plan, just so that after a consumer opts-in, as long as they are shopping on the site their session gets tagged.

NEWSLETTER ANNEX

If there is an in-house marketing email list present, leveraging of the weekly newsletter can maximize the percentage of known consumers browsing through the website. ESP helps the retailer to append the consumer’s email address inside an inquiry string parameter if they click through the email. If the cart abandonment email can be used to field the inquiry string parameter along with the tagging of the session, the percentage of the identifiable consumers just so along with this increases.

PRE-SUBMITTED TRACKING

Even if the consumers do not complete the checkout form, by using the pre-submit tracking, consumers can be easily identified just as soon as they enter their email address on the check out form.  Therefore it is recommended to keep the email address field as close to the top side of the checkout form as possible. Before sending the customer the abandonment email it is required to double check that the customer has opted in the email list.

GLOBAL POOL COOKIE

Few vendors also offer the retailers to tap into some global pool of identifiable devices and customers. For this purpose retailers will have to share their end-user data with the merchants using a similar platform. Through this approach, it is also possible for the retailer to identify anonymous users.

Best practices of the abandoned cart emails

STRATEGY

Identify the existing abandonment email plan subscribers, registered users, and guests

Both the registered users as well as the guests are encouraged in a successful abandonment cart plan. In real-time pre-submit tracking enables the retailers to identify the anonymous users just as soon as they enter their email address on the checkout form. This feature has been used by Liftopia that sells ski lift tickets; to identify thousands of the potential anonymous buyers that they had no idea even existed as these buyers were not registered. Within the first month, only this company tracked around $1.3 million of revenue that was abandoned by the consumers who were only filling the first few fields on the form without submitting.

Therefore, it recommended placing the email address field as high on the form as possible to give it the best chance to get filled before the consumer abandons. As the registered customers have already provided with their email addresses, so their activity can be tracked using that.

In order to capture more customers in the funnel earlier, consider an on-site triggered opt-in or pop-up that motivates the customers to fill in their email addresses. Pairing up with the opt-in will enable the retailer to identify a larger number of consumers that have expressed their intention of making a purchase, even if they have not made it to the cart or to the checkout page.

checkout form capture

Within 30 minutes of the cart getting abandoned send a consumer service email

The fir email sent to the customer should have no purpose other than to just be able to provide the customer with responsive service customers tend to abandon their purchase if they have questions left unanswered. These questions could be any one of these from payment problem to network delay while proceeding with checking out. Use the first email as an opportunity to help the customer out. Encourage the customers to call or to pick up the phone or email with their questions.

Deal with phone orders conversion tracking as well as payment processors concerning the third party

Of all the payment methods offered conversion tracking is important to stay in sync with the consumers. Consumers might leave an order unfinished on the website and complete it over the phone. Get such orders tracked by the email provider. Make sure the system of the website does not confuse the consumer.

Example of tracked conversions in Rejoiner

Focused customer service as the campaign approach

Abandoned cart emails are one way to continue with the conversation being carried out with an important group of potential buyers. These are those that showed a high amount of purchase intent but due to some reason, they did not finish.   The retailers’ job is to provide them with the best customer service and find out the answer to why they did not purchase. To get an answer to this, provide your toll-free number along with the company’s email address to the customers.

This should be sent from a well-monitored inbox. Simple questions such as, Was there any problem? Or How can we be of any help? Can get the customers to provide qualitative responses a to why they abandoned their cart. This information is priceless. To make sure that the customers feel more heard, send the email from a real person’s account as well as including that person’s picture in the footer of the mail.

Keeping all these things in mind, there are a few more things to note.

  • In order to make sure that your campaign is successful you need to keep in mind that customer success is essential
  • You have to make sure that you build the abandoned cart in  way that it ends up in your customer’s loop.
  • When you are putting up offers and giving discounts, do so diligently and carefully where you are sure it will be beneficial!
  • If you offer free shipping, it is bound to make an impact. If you can’t offer free shipping, at least a free shipping after a certain threshold.
  • Quirky taglines, slogans and humour will get you more customers than you can imagine! So use it!

With all these things in view, you are sure to find success in your ventures.

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Filed under: Blog

Tagged with: abandoned cart, drip emails, drip marketing, e-commerce

Libia RM

Libia has several years of experience creating content for marketing, advertising, and PR.