Depending on which survey you look at, eCommerce sales are expected to grow anywhere from $30 - $45.2 billion in 2016, clocking in at $392.5 or $355 billion respectively. With holiday sales accounting for up to 40% of a retailer's revenue, and the majority of retailers seeing growth in the eCommerce space, you can’t afford to leave your website unattended. One easy way to help drive profit this holiday season is to enable a cart recovery campaign.
Consider the following situation:
A few stats:
- 3% onsite conversion rate
- $50 AOV
- 15% Net Profit Margin 15%
- 15% Conversion rate on cart recovery campaigns
Retailer 1 - No Cart Recovery Campaign
- 1000 people visit the site.
- Since you have a 3% conversion rate, 300 people complete an order, which means you just made $15000 (after operating expenses, you net $2250).
- 500 other visitors put something in their cart, but get distracted and leave
- Since you don’t have cart recovery running, you just lost 100% of those deals, which is $25,000 (net profit: $3750)
Total net profit for the day: $2,250
Retailer 2 - Cart Recovery Campaign
Retailer 2 has the exact same operating model as retailer 1, the only difference is that they have an abandoned shopping cart recovery campaign enabled, which sees a 15% conversion rate.
- 1000 people visit the site
- 300 people complete an order, which means you just made $15000 (after operating expenses, the retailer nets $2250)
- 500 other visitors put something in their cart, but get distracted and leave.
- All 500 receive a cart recovery series and 15% (75 shoppers) come back and complete their order.
- You just made an extra: $3750 (net: $562.50).
Not only have you just made an extra $560, you’re also one step closer to retaining a customer who was, let’s face it, probably gone for good. Here are a few quick and dirty tips to help you make the most of a cart recovery campaign during the holidays. If you don’t have a cart recovery solution, there’s still time. Learn more about cart recovery and how to get started here.
Tip 1: Make Sure Your Cadence is in Line with the Pace of the Holidays
Just like anytime of the year, purchases can ebb and flow during the holiday season (October - December) and with that, your email timing should too. For example, a retailer may normally have a 3 part cart recovery series set up in the following way:
- Email 1: sent out two hours after abandonment (no discount)
- Email 2: sent out 3 days later (small discount)
- Email 3: sent out a week later (larger discount)
During peak times, such as Cyber Monday or the entire month of December, this retailer should think about updating their cadences using the following template:
- Email 1: sent out 30 minutes after abandonment (free shipping offer)
- Email 2: sent out 1 day later (small discount)
- Email 3; sent out 2 days later (larger discount, bogo, free sample, etc)
- Email 1: sent out 1 hour after abandonment (free shipping offer)
- Email 2: sent out 2 days later (small discount)
- Email 3: sent out 1 day later (larger discount)
Tip 2: Push Recommended Products
A cart recovery email is a great time to incorporate product recommendations into your campaign. Whether you use predictive recommendations, static recommendations, or a mix is up to you; however, make sure that you’re putting your best foot forward with products that will entice your wayward abandoner to come back and complete the purchase.
Tip 3: Link Your CTA Back to the Checkout Page
Now that you have your abandoner back on the site, make sure you make it as easy as possible for to continue checking out. If you have the ability, link the CTA to their shopping cart checkout page, this will result in a better user experience for your potential customer.
To learn more about cart recovery campaigns, go here.