An abandoned cart is a lost opportunity to sell and often represents the most difficult part of any online business experience. Missing that sale can be devastating for your bottom line as well as customers' patience with you.
According to Statista, in 2019, 69.57% of online shopping carts were abandoned instead of purchased - a nearly 10% increase from January 2017 data.
What does that mean for your business? Suppose you have 125,000 visitors per month and an average order value is $100 with a visitor-to-buyer conversion rate of 0.92%. In that case, you can generate $62,500 extra revenue every month by merely increasing your conversion rate by 0.5%. Cumulatively, it will result in a whopping $690,000 more per year - or 10% of the company's annual sales all on its own.
Now, the question arises, how? This is where abandoned cart recovery emails come into the picture.
Abandoned Cart Recovery emails are full of potential. With the right strategy, you can use them to bring back lost customers and potentially double your sales from just a single customer who returns.
In this article, we will provide key strategies on Shopify abandoned cart recovery through email campaign. This automated process sends follow-up emails at designated intervals to help retain the lost sales and increase overall sales.
What is Shopping Cart Abandonment?
Shopping cart abandonment is a term used to describe when someone starts to make a purchase but does not complete it. This happens for various reasons and can result from something on your website or off-site factors like competition from other companies. The good news is that you can use multiple strategies to reduce this rate and potentially increase revenue!
Many retailers struggle with this issue and have tried various tactics to combat it. Some examples include emailing customers after they've abandoned a cart, sending them a coupon through SMS, etc.
What's vital is to understand the reasons for shopping cart abandonment, as well as what will work best for your company. To know about this in detail, you can refer to this blog post of ours.
How to calculate Shopping Cart Abandonment Rate?
The abandoned cart rate is an important metric to measure if you want your e-commerce store or business website to be successful. To calculate the abandoned cart rate, divide the total number of transactions completed by the number of initiated shopping carts. Now multiply the number with 100 and further subtract it from 1.
For example, if your e-Commerce store had a total of 100 purchases and 300 shopping carts that were initiated, then divide 100 by 300. Now, multiply this number by 100 and subtract one from it for a final result of 67%.
This means that when you have an abandonment percentage as high as 67%, there is much work needed to make sure potential buyers aren't leaving without buying what they came for.
Tracking cart abandoners can be difficult, but if you are a Shopify business owner, you can retrieve your lost sales with LatticeAI. It is an easy-to-use platform for Shopify business owners to make the most of their time by automating customer marketing. From segmenting customers into unique groups based on their profiles and purchase history to sending out for abandoned cart recovery emails and SMS, it does everything!
What are abandoned cart recovery emails, and how useful they are?
Abandoned cart emails are a powerful yet often overlooked tool in the eCommerce world. They are a great way to recover lost sales and be effective as they can measure the success of your campaigns with four key metrics. You can customize the contents and design layout and schedule them, according to optimum timing and frequency standards.
The key to a successful abandoned cart recovery email is relevance and timing. To measure its overall performance and make necessary amends, you need to analyze various metrics like open email rates, conversion rate, click-throughs/clicks per email sent (CTPS), and average order value based on abandoned carts retrieved by an automated follow-up campaign.
Open Rates: Open rates are the number of people who opened your abandoned cart email.
Conversion Rate: Conversion rate is how many customers from the open list convert to a sale through one or more follow up emails or with one click on an offer in their inbox.
CTPS: The CTR (click-through rate) measures what percentage of recipients clicked on the links within your eCommerce marketing message and can be calculated by dividing clicks by total impressions. This metric evaluates engagement levels that you may have previously missed because it's not based solely on conversions.
Average Order Value: This metric considers all orders/revenue made due to abandoned cart emails.
You can easily acquire this data from the dashboard of an email marketing tool.
Abandoned cart emails are a must for every Shopify store owner. They help you make money by providing an additional opportunity to bring people back into the shopping process after they abandoned their carts.
Data from Shopify shows that this strategy has contributed millions of dollars in sales. Still, if you haven't set up abandoned cart automation yet, you may not realize the number of sales you are missing out on and how it can impact your business.
How to trigger a Shopify abandoned cart recovery automation?
LatticeAI integrates seamlessly with Shopify to help you set up email automation or "campaigns." If you're using Shopify as your eCommerce platform, an AI-based abandoned cart email campaign is already set up for you!
To instantly recover lost shoppers and engage with them, launch this campaign within LatticeAI and sit back while these abandoned cart recovery emails do their job!
You can use the abandoned cart campaign as it is or group your customers using LatticeAI's "segment" feature that offers multiple options ranging from active loyals to new signups.
LatticeAI comprises abandoned cart campaigns, which you can edit or clone as per your convenience instead of starting from scratch. You can adjust these features and schedule emails for your store and audience with just a few clicks.
Let me show you how it works-
Step 1: Once you create an account on LatticeAI, it automatically pulls your customer shopping data from your Shopify Store. Based on this data, it sends personalized emails to your customers. To access an abandoned cart recovery email campaign, go to 'Campaigns'> 'All Campaigns' - at the left-hand sidebar.
Step 2: Now click on the Abandoned Cart Email Campaign; you can either edit or clone it at your convenience.
Step 3: Name your campaign, e.g. Abandoned Cart Email Campaign. After that, select the campaign type - Single Touch (for a single email and/or SMS) or Multiple Touch (for multiple emails and/or SMS sequence).
Step 4: Now, click on 'Next' and select triggers. Triggers apply to the type of customers you are sending an email to. Since it's an abandoned cart recovery email, select "cart abandonment".
Step 5: You can also schedule your email based on customer action by clicking on - Action-Based Scheduling. After selection, an entry window appears where you can enter the date and period (when customers received the campaign). To choose an optimal time for the users to be entered into the Canvas, you can click on Scheduled Entry under Canvas Entry Conditions.
Step 6: If you want, you can also segment your customers to target a specific subset(such as first-timer or repeat buyers), in the next slide. However, this is not mandatory when you are sending an abandoned cart email.
Step 7: Use the A/B testing feature inside the Canvas Editor that allows you to examine which kind of emails got you the most response from users. For eg: sending across two emails with different subject lines and analyzing which one helped you acquire greater conversion rates.
Now that you have already set up the automated abandoned cart email campaign, it's time to create your email template and supply the contents you want it to have.
How to create an abandoned cart email?
To begin with, including information about the abandoned cart items like their quantity, size, color, or price, as well as an image. This will help remind your customers what items they were trying to shop for and offer them some dynamic details that they might have missed before, e.g. free shipping. This is a great way to lure your customers into buying your product.
When you preview your abandoned cart email, you can see all the data that's imported from your Shopify store. You can even change the information in each section of these emails to personalize them for every customer. Plus, don't worry about missing an item because we automatically include everything with our high conversion email templates!
To access various email types, go to 'Email Templates' - at the left-hand sidebar. This consists of a myriad of email templates. You can also create your own email template here.
Not sure where to start? Check out the tips and examples below for inspiration. You can also refer to this blog post to gain deeper insight into creating the most effective email templates for abandoned cart recovery.
4 tips to optimize your Shopify Cart Abandonment Emails
Abandoned Cart Emails can vary from one another based on the type of Shopify store and the products it sells. However, there are certain standard guidelines that you can follow to upgrade your abandoned cart automation and add some extra value to them.
Leverage the email templates
Aesthetic emails are a great way to grab your lost customers' attention back.
The best way to get your lost customers back is through a product-focused or brand-focused abandoned cart email. With the right approach, you'll be able to convey exactly what they're looking for and persuade them into making that purchase!
Using a product-focused approach where you display the abandoned cart item will lead the reader to take the action you want them to - e.g. clicking on the CTA (call-to-action) button.
If you sell something that might have triggered some questions, I recommend taking a "brand" focus approach, for example, adding customer support email ID or thresholds like "free shipping". Be sure to include all relevant information like size, color options, etc., so shoppers can make their decision quickly - there's no time better than now!
The power of A/B tests is not limited to your website or marketing campaigns. Did you know that by implementing different variations of abandoned cart emails, a Shopify store owner can perform an email test and see which one gets the most responses?
By optimizing their content for better engagement rates on these crucial messages (you'll want those carts back!), they're able to get more customers coming in through this door again soon!
With A/B testing subject lines and content of email messages, you may be able to understand better what kind of message gets the most response from subscribers. For example, if you offer a fixed cart discount for first-time customers in one variation while another offers a cart percentage discount, which will result in more conversions?
Throw SMS into the equation
After sending your first abandoned cart email, an SMS should follow.
Furthermore, Shopify e-commerce brands enjoy 36% click-through rates when using SMS marketing.
What's more, SMS marketing is still neglected by 61% of marketers. Therefore, the market isn't saturated, and people won't feel burnt out or inundated with branded SMS or messages.
Combine SMS and email, and you'll have a potent combination that turns cart abandonment into an opportunity to sell.
Shopify business owners see incredible open rates and click-through rates with SMS; therefore, adding a text message into your abandoned cart series is sure to get more views on your message.
Create a sense of Personalization
Making your Shopify abandoned cart emails personal to each customer will make them feel more special and let them know that you care. Just add their name in the subject line of an email or referring back to a product they left behind can go a long way!
You may include a tag referencing the customer's first name or the product they left their cart with an interesting subject line for them when sending out these types of messages. This can be done by using subject line such as "Your items are waiting, Lee!" instead of "Items are waiting."
You can personalize your Shopify abandoned cart emails even more by including products that you think they'll be interested in. For first-time customers, include trending or best-selling product recommendations. For existing customers, add products of more variations based on their past purchase, e.g. same item with more colors/fragrance.
You want your customers to be able to browse without feeling pressured into buying anything right away. Therefore, implementing a personalized recommendation system is a great way as it allows shoppers to explore more.
Sending an abandoned cart email is a great way to keep customers coming back and generating more revenue. It's also one of the most effective ways for Shopify store owners to turn their abandoners into paying customers.
The key is making sure that you're sending these messages at just the right time, and their need to be personalized to have the best chance at turning those shoppers around. This means tailoring them with basic information like product name or price point and incorporating what you know about who your customer might be.
How can LatticeAI help?
Abandoned carts are a major problem for eCommerce stores. But, you don't have to be one of them! Here's how LatticeAI can help you recover 5-20% of your lost revenue with personalized messaging and incentives in emails:
✓Analyzing customer behavior and segmenting them based on their purchasing habits.
✓Sending unique offers for each customer based on their purchase history.
✓Customizing on-brand messages in the abandoned cart emails with a personal touch. Not only does this build customer loyalty, but it also generates more sales by persuading customers to complete their purchase!
Your customer's shopping experience should be seamless no matter how many steps it takes for them to finish up what they started. Our abandoned cart emails are designed specifically so that you don't have to worry about losing potential sales because somebody left something off of their online purchase list!
To try our services for free, register here, and our team of experts will connect with you shortly.
How do I increase my Shopify conversion rate?
You may need to try emailing people who abandon their carts and follow-up with them before they forget about the product altogether. This will help make sure that potential customers don't walk away from a sale without buying anything!
Why do abandoned cart emails have higher conversion rates?
When an abandoned cart email is sent, it often comes as a relief to the customer who might have been browsing for days. It's also reassuring that they weren't forgotten about or ignored while shopping around and considering their options.
How is the abandoned cart rate calculated?
To calculate the abandoned cart rate, divide the total number of transactions completed by the number of initiated shopping carts. Now multiply the number with 100 and further subtract it from 1.
Why do shoppers abandon carts?
Shopping cart abandonment is a term used to describe when someone starts to make a purchase, but does not complete it. This happens for various reasons, and can be the result of something on your website or off-site factors like competition from other companies.
In our most recent study, we found that shoppers who abandon their carts are likely to do so in the checkout. This means that many of these people may have been ready to make a purchase and had no other reason for abandoning their cart but an error occurred at checkout or they encountered a problem with shipping costs.
How to create an Exit-Intent Offer?
Exit-intent is behavioral technology that tracks and monitors movements of website visitors to determine when they are going to leave your site without making a purchase. It's designed with the purpose of reducing cart abandonment and capture more leads.
You can create an Exit-Intent offer by asking customers about their shopping experience or providing pop up discount codes if they land on your website for the first time.
How many CTA buttons are helpful in increasing conversion rates?
Most cart abandonment emails should have at least two CTAs because there are usually two types of visitors. Some may be potential customers who just want to explore more or acquire more info, and others might be ready for a purchase decision- one CTA could make them more likely to buy while another provides all the information necessary.