Abandoned cart emails key to win back shoppers: study

Sending abandoned shopping cart emails packed with product images to shoppers is a great way for marketers to differentiate themselves from their competitors while also raising sales by enticing customers back to ecommerce Web sites.

A study from Email Institute found that only one-third of retailers send abandoned shopping cart emails to their customers. The study was conducted from November 2010 to January 2011 with more than 100 retailers.

"Luxury customers expect a certain type of recognition and a certain type of treatment," said Lauren Skena Kimball, account director at Epsilon Digital Marketing Solutions, Irving, TX. "The more personal the abandoned cart strategy, the more luxury marketers can reinforce value to their customers.

"For luxury brands, crafting an abandoned shopping cart email should be all about providing superior customer recognition and value," she said. "It's important for brands to show customers that they value them and that they are speaking to them directly.

"An abandoned cart strategy that incorporates personalization, value, and recognition is sure to go a long way toward enhancing customer relationships and encouraging brand loyalty."

Email Institute is a best-practices email marketing division of Epsilon Digital Marketing Solutions.

Abandonment issues

Brands that remind customers of abandoned shopping carts have an edge over their competitors, because approximately two-thirds of the retailers surveyed did not send abandoned shopping cart emails.

In 2010, Forrester Research found that 88 percent of United States Web buyers had abandoned an online cart, the same percentage found in a 2005 report.

An email can remind customers to revisit the Web site, which can boost conversion rates, introduce shoppers to similar items and renew interest in the brand and its products.

This also adds a personalization factor, which luxury consumers have come to expect and want.

The more personalization marketers add to their abandoned shopping cart emails, the more value consumers take from the overall message.

Approximately 45 percent of retailers that sent abandoned cart emails include a product image of something left in the cart. More than 19 percent included the consumer's first name in the email as a way to connect with them.

The most important thing luxury brands need to take into consideration is how to differentiate themselves from their competitors.

"For luxury marketers, it is not about a discount or a coupon offer," Ms. Kimball said. "Value is more about adding benefits to customers to make them more loyal.

"Luxury brands need to be even more creative with their messaging and maintain their image in their remarketing emails," she said.

Perfect timing

To use this strategy effectively, timing is everything.

Brands want to send the email at a time that is not too soon as to seem intrusive, but not too late to think that its customers have already lost interest in the product.

Out of the retailers that sent abandoned cart emails, 12.9 percent did so the same day that the cart was abandoned, whereas 32.3 percent mailed them within 72 hours.

Other options are attaching an expiration date in the email, which reminds shoppers how long they have to complete a purchase.

This creates a sense of urgency that wants to bring shoppers back to the site more quickly, which can in turn boost sales.

Approximately 25.8 percent of retailers that sent abandoned shopping cart emails included an expiration date on their abandoned shopping cart emails, and with follow-up emails.

Most brands find it effective to send more than one reminding email to customers, as it sometimes takes a few tries to get through inbox clutter.

"Marketers can use email in a number of ways to retain customers," Ms. Kimball said. "The best approach is to employ a strong lifecycle messaging plan.

"It is very important to think about the lifecycle of consumers and how to keep them engaged," she said. "Email can also be useful to help drive a social agenda to keep customers engaged.

"The marketing medium is also helpful to communicate different types of creative, messaging, or exclusive online events-email can do wonders to retain loyal customers."