SHOPPING CART ABANDONMENT BENCHMARKS
Cart Abandonment messages are typically a retailer's best-performing email campaign, as they bring in the highest amount of total email revenue and target the highest level of customer intent-to-buy. Cart Abandonment campaigns are a tried and true money maker, but you must be strategic in your execution in order to beat the benchmarks. Below are the current benchmarks.
- Open Rate: 22.5%
- Conversion Rate: 20%
- Click to Open Rate: 42.7%
- Revenue Per Email Sent: $3.43
BEAT THE BENCHMARKS
The above statistics were calculated based on a study Listrak performed using email statistics for 950 of our retail clients. Now that you know the marks to hit, what can you do to reach them, and better yet, surpass them?
- Leverage Social Proof: Use ratings and reviews to help shoppers make purchase decisions. Showing your customer their abandoned cart items, along with positive feedback from real people about those same products will make them more likely to pull the trigger and feel confident about their purchases. This is also a great tactic for encouraging a purchase without utilizing incentives and discounts.
- Keep Creative Fresh: Cart Abandonment emails shouldn't be stale and invoice-esque. You don't necessarily even need to include the item quantity or price. You can, however, let the customer know if the items in their cart have low inventory levels in order to create a sense of urgency. Because of the high conversion rate of these messages, it's important to use your best creative.
- Add More Messages: If your Cart Abandonment campaign is performing well, you may be missing out on generating even more revenue. A good rule of thumb to follow is: If the last message in your series is performing with conversion rates in the double digits (10% and up), add another message. You can add another message to your conversation on your own. Simply follow the instructions in Adding a Message to Your Shopping Cart Abandonment Campaign.
- Test out Recommendations: Try recommendations in your Cart Abandonment messages and monitor their impact on conversions, items ordered, and AOV.
The SCA Dashboard
You can track the details of your Shopping Cart Abandonment campaigns using the SCA Dashboard. Variables such as carts abandoned vs. carts recovered can be identified using a specified time frame.
CART BENCHMARKS AND PERFORMANCE METRICS
We already discussed the general Cart Abandonment benchmarks, but did you know there are benchmarks to consider for your reachable and recovered cart rates as well?
- Abandoned Carts: On average, retailers experience approximately a 75% abandoned cart rate.
- Reachable Carts: The reachable rate should hover around 30%. This represents those customers you have an email address for and can market to after the abandonment.
- Recovered Carts: Your recovered rate should hover around 4–6%, which represents healthy campaign performance.
LEVERAGING TOP PRODUCTS AND CUSTOMERS
Within the SCA Dashboard, you'll find blocks of information including product information that details the product name, quantity, price, and value. Additionally, customer information including email address, number of items in the cart, and the cart value are displayed. Below, we take a closer look at these information blocks and what this data tells us.
- Top Products Recovered: These are the products that are viable options to use in marketing campaigns because they are accessible and people are responding to them.
- Top Products Not Recovered: Look at the price point of the product. Is your price competitive with the market? What are the barriers to purchase? Removing those barriers will improve your recovered rate.
- Top Customer Carts Recovered: This shows you values of individual's cart. Perhaps incentivize these clients. They've proven to be big spenders.
- Top Customer Carts Not Recovered: Take a look at the customers abandoning high-value carts who potentially may be price shopping. You can add a notification to your conversation that will trigger an email to your customer service team when high-value carts are abandoned. Learn how to set this up in Setting Up Notifications for High-Value Carts.
WHAT DO I DO IF REACHABLE RATES ARE LOW?
Reachable carts truly represent the available opportunity you have at any given time to encourage customers to convert. So if this number is low, your opportunity may suffer. You can increase reachable carts by capturing new contacts. Several suggestions for improving your number of reachable carts.
- Add an Additional SCA Capture Point: Cart Abandonment capture points allow you to collect the customer's email address and add them to your Cart Abandonment list. You should put these capture points anywhere on your site that a customer might enter their email address. Some location include the header, footer, account sign-up, check out, log in, and more.
OTHER TIPS FOR IMPROVING ROI
- Your Business Model Matters: Do you subscribe to the "fast fashion" business model, or something entirely different? If you tend to burn through inventory quickly, your Cart Abandonment messages should have a shorter cadence. Products that have a longer purchase process can afford more spaced out messages. For example, if someone is shopping for furniture, they may take weeks or months to decide on the products they ultimately purchase.
- Timing is Everything: Your timing could be off. Typically, a Cart Abandonment campaign will contain messages sent three hours after the cart is abandoned, then two days after the first message is sent, and finally five days after the second message is sent. You can, of course, add additional messages if those first three prove to be high converting. Modify the timing and even conduct a split test to discover what timing works best for your customer base. Instructions are documented in Modifying Shopping Cart Abandonment Timing and Cadence.
- Get the Right Information: Are you letting customers walk away without capturing their email address? The critical piece of information in the world of e-commerce retailers is the email address. Set up your checkout page so that the email address is the first field the customer is asked to fill out.