High Value Cart Abandonment Strategies: eCommerce Marketing TipsReading Time: 4 minutes
Hey, it’s Tanner from Build Grow Scale. Did you know that the value of abandoned carts in the global ecommerce community was over four trillion dollars last year? That’s a crazy number of zeros! To put that into perspective, that’s like 20 million Ferraris were abandoned … or 2.9 million super-yachts. A lot of money was abandoned due to shoppers going through a store, adding something to their cart, and leaving without purchasing. And a percentage of that was yours.
Now, according to the experts, between 30 and 60 percent of those four trillion dollars is recoverable each and every year. So, it’s very important that you’re using automated abandonment and automated recovery strategies to recover as much of this revenue as possible.
Email recovery campaigns are by far the easiest place to start, and Klaviyo is my favorite tool for setting them up. If you’re not going to use Klaviyo, the next best thing would be something like CartHook, which is an app. Now, the cool thing is that automated email recovery campaigns are, dollar for dollar, the best marketing that you can invest in to recoup the money your site is losing out on … because abandoned carts equal lost revenue. You’ve paid money to get the visitor to your site, and if they don’t purchase, you’ve lost money. So, using automated recovery helps recapture that lost income. Now, what you’re seeing below is something really cool. This is a little trick I want to share with you.
This Klaviyo screenshot shows the value, per recipient, of these emails, and everything that’s outlined in red is an abandonment recovery email. You see “Browse Abandonment” at the bottom; these are people who abandon a page, and we have their email so we can bring them back to get them to buy. Then you have “Customer Winback.” These are customers that haven’t bought in a long time, and you’re just trying to save them. It’s kind of a Hail Mary. They’re worth about $1.15 per recipient on this, which is crazy. Next, you have your traditional “Abandoned Cart,” which is worth about $2.89 per send.
Now, this is not normal—it’s actually fairly low. But what’s really cool is our high-value abandoned carts. Most people have “one” abandoned-cart campaign that goes out to everybody. But here’s what we do: We look at our “High Value – Cart Abandon” people (in this case, those spending 20-40% more than our average order value), and we treat them differently, with their own unique cart-abandonment campaign. Why? Because if they abandon the cart with more money in it, they’re potentially a more valuable customer. They could be a really high-value customer!
So, we created a separate sequence. Just the high-value sequence alone means that everybody in the sequence is worth $13.30 per send. So, every time we send that email, we make $13.30. That has reduced the value of the traditional abandoned cart because we separated it. When it was all together, it was much higher. But now that we’ve separated it, we’re still getting over $13.00 from our high-value people, which is great because we’re getting more of them to come back, and we’re still getting $2.89 from our regular average order value customers. An average order value on this store is around $35.00.
So, this is really, really good. And it’s 100% automated. Once we set these emails up (this is 100% email), we never touch it again. The emails will be sent automatically, and boom … You’re making money and recovering lost customers that might have left and never come back.
Now, the crazy thing is this: What I just showed you is only one of the six areas you need to optimize on your store. You can see right here, “Recovery” is in green. That’s just one of six. There are five other areas of your site that need to be optimized and dialed in in order to really maximize your return on investment, revenue, and profit.
Now, I just showed you a little bit about recovery, including a really cool tip on how you can segment your high-values and make even more money from them than you do from your regular abandoned carts. That’s one thing—I’ve got five more sets of really cool optimizations to show you.
But I can’t do that right here, so I created a 3-day Ecom Profit Bootcamp, and I’ll go through each of these six different areas of a site. I’ll break it down, show you how to do it, why we do it, and basically give you the tools to be able to do it on your own site. Simple, easy, and it’ll only take an hour of your time. So, all you have to do right now is register for the bootcamp.
I look forward to helping you double your Shopify sales!