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Cart abandonment emails work – trust us

September 26, 2013

We all know that email marketing works as a "batch and blast" marketing channel and revenue generator. A simple last click attribution model across your channels will show this. Although true attribution is a lot harder but that is a completely different blog post.

Behavioural email marketing on the other hand is still really in its infancy. It requires a degree of integration and the numerous triggers available can make it appear more confusing than it really is (although it can get very complicated if you want to be really clever).



A good way to start with behavioural email is with cart or basket abandonment emails. An abandoned cart is where someone has put items into their basket on your ecommerce site but does not complete the purchase. A report by Salecycle showed that on average 73.6% of all shopping carts (or bookings) are abandonded before completing a transaction.


Let us suppose as an example you have 2000 visitors each month that visit your site and place something in their basket. That equates to 1472 abandoned baskets and 528 completed purchases.

If we say each purchase is worth £50 then your ecommerce revenue is £26,400 per month

The research goes on to say that 14.9% of people receiving a cart abandonment email will click through to the website. That equates to 220 visitors returning to your site. Of these, 33% will go on to make a purchase. That's 72 people placing orders driven by your cart abandonment program.

Cart abandonment has increased your monthly transactions from 528 to 600, an increase of 14%.
A previous study by Marketing Sherpa a couple of years ago showed that triggered emails re-capture 29% of abandoned carts. So 14% may be a conservative figure but is clearly dependent on visitor volumes, average basket value etc.

And things just get better. The same study showed that the average order value for orders placed from a cart abandonment email was 58% greater than a normal transaction. In our example that make the average order via cart abandonment £79.

So, a simple cart abandonment campaign has generated an additional £5,688 of revenue in one month or £68,256 per annum. That is an increase in e-commerce revenue of 21.5%. Surely that's a revenue channel that can't be ignored.

Posted by Simon Hill
Automation, General, Topical email


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