Introduction
Abandoned carts are one of the biggest missed opportunities in ecommerce. An abandoned cart occurs when a shopper adds items to their online shopping cart but doesn’t complete the purchase. According to Baymard Institute, the average cart abandonment rate across ecommerce sites is a whopping 69.57%. That means for every 100 people who add items to their cart, almost 70 will leave without buying.
Recovering even a small portion of abandoned carts can significantly increase sales and revenue. Implementing an abandoned cart recovery strategy enables ecommerce businesses to remind shoppers about the items left in their carts and incentivize them to complete their purchase. With the right techniques, stores can recover up to 25% or more of their abandoned carts. In this article, we’ll explore the major causes of cart abandonment and proven strategies for recovering abandoned carts to maximize revenue.
Why Do Shoppers Abandon Carts?
Understanding why shoppers abandon their carts is crucial for developing an effective abandoned cart recovery strategy. According to research by Baymard Institute, the top reasons shoppers abandon their carts are:
Extra costs were more than expected – sticker shock from shipping, taxes or other fees not shown upfront lead many shoppers to ditch their carts. Always strive to show the total costs upfront.
The checkout process was too long or complicated – requiring shoppers to create an account or having a multi-step checkout with too many fields can cause frustration and cart abandonment. Streamline checkout.
Lack of trust in the site for providing quality products/services – first time visitors especially may not trust the site enough to complete their purchase. Build trust with guarantees, customer reviews, secure checkout badges, etc.
Site wanted too much personal information – requiring extensive personal info like phone number or address before allowing checkout also causes shoppers to abandon. Only collect essential info.
Extra time needed to compare options on other sites – shoppers often add items to their cart just to compare prices or options later. Sending reminders can bring them back.
Understanding these top reasons for abandonment allows you to pinpoint areas of your site to optimize in order to recover more carts.
Abandoned Cart Recovery Strategies
Recovering abandoned carts requires proactive strategies to remind shoppers about their cart and incentivize them to complete their purchase. Here are some of the most effective approaches:
Cart Reminders
Sending timely reminders is one of the simplest and most effective ways to recover abandoned carts. Email and SMS campaigns that nudge shoppers to return to their cart can result in high redemption rates. Reminders should go out soon after cart abandonment, such as within 1-3 hours. The copy should be friendly and casual, reminding shoppers of the items they left behind.
Discounts
Offering discounts or promo codes specifically for abandoned carts can entice shoppers to return. The discount amount will depend on your profit margins, but 10-15% off is a good starting point. Discounts should only be offered for a short time, creating a sense of urgency. Make sure to test different discount amounts to see which leads to the highest recovery rate.
Free Shipping
Free standard shipping can be another way to incentivize completing the purchase. Especially if shipping costs were one reason for abandonment, this can remove friction in the checkout process. Make it clear the free shipping is only for returning abandoned cart customers.
Email and SMS Campaigns
Setting up a series of follow-up emails and SMS messages creates multiple touchpoints to remind customers. The first message should go out soon after abandonment. Follow up after 2 days, 4 days, 7 days, and 10 days. Keep the messaging friendly, casual, and motivating.
Best Practices for Implementation
A successful abandoned cart recovery strategy depends on smart implementation and optimization over time. Here are some best practices to follow:
Timing
Timing is everything when sending cart recovery campaigns. The sooner you can remind customers about their abandoned carts, the better chance you have of recovering the sale.
Send the first reminder email within 15 minutes of cart abandonment. This has the highest open and conversion rates.
Send a second reminder email 1-3 days after abandonment. The customer may need more time to consider the purchase.
Send a final email 5-7 days after abandonment as a last chance to recover the sale.
Spreading out your reminders allows you to catch customers at different moments during their purchase consideration. Just don’t wait too long where they may have already purchased elsewhere.
Personalization
Personalized abandoned cart emails have open rates 3x higher than generic blasts. Include dynamic elements like:
Customer’s first name
Items left in their cart with images/descriptions
Special incentive or discount code just for that customer
This shows the customer you recognize them individually and makes your reminder more compelling to complete the purchase.
Testing
Continuously test and optimize your abandoned cart campaigns. A/B test various email copy, discounts, timing, and design elements to improve performance over time.
For example, try offering free shipping versus a percentage discount to see which converts better. Track open and conversion rates to identify what resonates most with your audience. Refine your campaigns to maximize their impact.
Real World Examples
Successful abandoned cart recovery campaigns come in all shapes and sizes. Here are some real world examples of companies that implemented smart abandoned cart recovery strategies and saw big results:
Case Study 1: Outdoors Company
Outdoors Company, a retailer selling camping, hiking, and outdoor gear had an abandoned cart rate of 78%. They decided to set up automated abandoned cart emails that go out 30 minutes, 2 hours, and 24 hours after a cart is abandoned.
The emails have a clean, simple design and offer a 10% discount code for completing the purchase. In the first month of launching this campaign, they recovered over $85,000 in abandoned revenue and increased conversion rates by 22%. The 2 hour followup email had the highest open and click through rates.
Case Study 2: Pet Store
Pet Store is an ecommerce site selling pet food, toys, and accessories. They have a high average order value but struggle with cart abandonment. To encourage more customers to complete their purchase, Pet Store implemented SMS abandoned cart reminders.
The SMS is personalized and sent 2 hours after abandonment. It includes the customer’s first name and a coupon code for 15% off. In the first 6 months, these cart recovery texts helped Pet Store generate over $320,000 in revenue from abandoned carts. The open and redemption rates were much higher than their email campaigns.
Case Study 3: Fashion Retailer
Fashion Retailer sells trendy, affordable women’s clothing online. They noticed carts were frequently abandoned right before checkout, especially on mobile. To target this issue, they created a simplified mobile checkout process with saved customer details.
They also implemented cart recovery ads on Facebook and Instagram specifically for mobile users who recently abandoned. The social retargeting ads feature dynamic product images and copy about completing the purchase. With these campaigns, Fashion Retailer has reduced mobile checkout abandonment by 18% and recovered 10% more revenue overall.