Courting Customers Through Cart Abandonment Mystery Shopping and Merchant Survey Insights. Have you optimized cart abandonment?

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1 View online version Courting Customers Through Cart Abandonment 2013 Mystery Shopping and Merchant Survey Insights June 11, 2013 Quick Links: The Details The Trends The Checklist The Company The Study The 148 participating retailers in our Annual Merchant Survey made it clear when describing the success of personalization tactics. Triggered shopping cart abandonment s topped the list of strong performers where 61% of retailers reported that they are very/somewhat successful up 5% from Cart abandonment is always a hot topic as the opportunity to tap into an audience that has expressed interest in making a purchase is an ideal gateway to conversion. In this e-tail detail we will share a set of highlights on abandonment including results of the abandonment exercise that we completed as part of Mystery Shopping in 4Q12. It will also showcase some of our favorites that we hope will inform your strategies throughout the year. Have you optimized cart abandonment? Are you personalization tactics in place? Want the inside scoop? Get the complete e-tailing group Annual Merchant Survey Report for $595 Methodology In addition to the Merchant Survey, we continue to monitor triggered s as a result of abandonment, now in our 6th year. For each of the 100 merchants that are part of our Annual Mystery Shopping Survey, we have added an item to the cart (with a retail value over $62.99) going through the entire checkout process then stopping just before completion and leaving the site. Subsequently we track all correspondence regarding the items left in the cart, respective strategies, participating merchants and incentives. Merchant Adoption of Abandonment Practices One can summarize abandonment strategies as more aggressive year-over-year. Just under one in four (23%) took advantage of triggered with all targeting prospects via HTML. Knowing that a more personalized experience performs well, 61% included the product image while 26% personalized the salutation. A slight increase in the use of incentives was tested with 26% of retailers hoping to reel in shoppers where offers ranged from free shipping to 20% off. All yearover-year details are summarized below.

2 Communication Efforts Continue A look at retail strategies also finds that of the 23 retailers who sent an initial , just under half (48%) followed up with a second message in hopes of securing the sale. They tended to be more aggressive as 55% now included an incentive as part of their marketing strategy, which was double the initial mailing. It s interesting to note that the average number of days to receive this communication was 7.39 days up from the prior year s 5.0 days Policies and Performance 2013 Annual Merchant Survey results indicate that shopping cart abandonment rates have declined. Dedicated merchant efforts should be credited and among those who know their rates, they appear to be evenly split, averaging in the 41-50% range. A review of questions focused on personalization indicate that triggered shopping cart abandonment s top the list of tactics that deliver ROI with 61% of retailers rewarding them as being very/somewhat successful; performing above every other noted tactic.

3 An array of policies is in play for holding merchandise in the cart where category, brand and inventory turn are important factors in establishing one s policy. The Tactics Retailers are testing a myriad of tactics to communicate with those shoppers abandoning carts with incentives playing a greater role. We would have expected, given these findings, that our mystery shopping would have seen higher triggered s as they once again lead the way as chosen communication techniques.

4 ABANDONMENT GALLERY The following serves as a gallery of examples featuring a series of tactics tested by some of today s top retailers. L.L. Bean 1st Reminder/No Incentive Subject Line: Final Reminder: There Are Items in Your Shopping Bag L.L.Bean entices recipients with this final reminder that envisions you walking out with the product right in to your vacation, reinforcing their always available free shipping with no minimum order and a tie-in to one s local store including location and hours.

5 DSW 1st Reminder/no incentive/branding Subject Line: Your shopping bag is waiting for you at dsw.com Clever copy wins the day with their still want it, Still GET IT! headline. DSW emphasizes that things sell out, encouraging shoppers to buy now. A link to their store locator, reinforcement of DSWRewards, and opportunities for outreach via social links to Facebook and Twitter along with signups ensure that shoppers stay connected.

6 Sephora 1st Reminder/no incentive/product image Subject Line: Just a reminder. Sephora s communication includes a visual of the product in the cart along with a reminder that free samples and free shipping with orders over $50 are available with any order. They smartly incorporate both top-rated products and weekly specials to foster add-on purchasing while reinforcing their Beauty Insider newsletter for brand afficianados. GNC 15% Off Your Order/Product Image

7 Subject Line: Just in case you forgot! Bold and powerful is this reminder of product left in the cart piggybacking a 15% off promo code to get shoppers back to purchase. Three upsells also enrich the cart in hopes of increasing the basket size. Carters 2nd Reminder/20% coupon/photo image Subject Line: Too Cute to Forget Carters customers are sure to respond to this adorable and welcome the chance to take advantage of the 20% off coupon. Their social links are well suited to their audience where viral sharing is a natural.

8 Blue Nile 2nd Reminder/No Incentive/Photo Subject Line: Your Blue Nile Shopping Cart & Other Jewelry You May Like Blue Nile starts with your initial selection and at the same time serves us five other options with a convenient link for searching their entire assortment of rings.

9 1. Establish a strategy for saving items in the cart 2. Understand current technology's ability to trigger abandonment 3. Message cart strategy to ensure customers know when and if their cart will be cleared 4. Include an urgent call to action 5. Utilize HTML and photos to visually enhance abandonment s 6. Review abandonment opportunities from branding to customer service 7. Include merchandising tactics to foster the customer relationship and encourage purchasing beyond the abandoned item 8. Provide a link to the abandoned cart and direct to cart links for additional product recommendations 9. Integrate cross-channel elements and social engagers to elevate the brand 10. Use promotional incentives to save the sale if important for your brand and strategy The e-tailing group, inc. serves as the multi-channel merchant s eye, bringing a merchant s sensibility to evolving the multi-channel shopping experience. A Chicago-based consultancy, we provide practical strategic perspectives and actionable merchandising solutions to merchants selling online as well as to enabling technology firms. For more background about this research study, including a list of merchants surveyed or for additional information on the e-tailing group, inc. please contact Lauren Freedman at or visit the e-tailing group website Purchase and download the report with highlights from Merchant Survey

10 retailers on 45 critical topics core to ecommerce. Our 2013 Annual Merchant Survey Report is available for $595. Report $ W. Altgeld Street, Chicago, IL T: F: the e-tailing group. All rights reserved. No content may be reproduced without the express written consent of the e-tailing group. This was sent to by the e-tailing group, inc. Forward to a friend, Manage Preferences or click here to unsubscribe.

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