Yet another very surprising discovery was that even of those who use a modal acquisition tactic, relatively few send recovery emails. This is a major amount of money literally being left on the table...
Lititz, PA (PRWEB) October 15, 2013
Listrak, an innovator of omnichannel digital marketing solutions for retailers, today released the results of its 2013 study of the Internet Retailer 1000 companies’ shopping cart abandonment practices. This is the fifth year for Listrak’s annual study, which is based on the Top 1000 retailers ranked in Internet Retailer’s Top 500 Guide and Second 500 Guide, and the results show that 29% more companies are sending at least one remarketing email than did in 2012.
In this edition of the study, Listrak looked at not only the number of companies that re-engage shoppers after online shopping carts are abandoned and the number and timing of emails they send attempting to recover lost sales, but also what Internet Retailer 1000 merchants are doing to boost reachable rates and engagement.
The study found that 24.5% of the online retailers studied are sending at least one shopping cart recovery email. The top 500 retailers had a significant 21% increase over last year, with 23.5% reaching out to shoppers, while the 25.5% of second 500 retailers sending recovery emails represented an even more remarkable improvement over last year – a 35.6% increase.
The study also reveals that more of the top 1000 retailers are sending a series of recovery emails to engage shoppers rather than a single message. 51.3% of the top 500 retailers and 38.6% of the second 500 send a single message, down 18% and 38%, respectively, from 2012. However, three message series increased 23% in the top 500 retailers and 62% in the second 500.
Listrak found that in addition to sending more messages, the Internet Retailer Top 1000 retailers are reaching back to cart abandoners with both first and second emails sooner with 73% of first messages received within 24 hours of the abandonment and 79% of second messages received within 48 hours of the first message. In addition, offers in the first message decreased 7.7% in the top 500 retailers and 26.7% in the second 500, but increased 2.4% and 12.5%, respectively, in the third message, showing that more retailers have adopted the discount ladder approach to discounting. A key discovery of the 2012 report was a decrease in offers in the first, second and third messages.
The key discovery in the 2013 report is the small number of Internet Retailer Top 1000 retailers who used a modal acquisition tactic to capture shoppers’ email addresses, and further, that fewer than half of those who do send one or more shopping cart recovery emails. Ross Kramer, CEO of Listrak, remarks, “The fact that more and more online retailers are implementing shopping cart abandonment email campaigns, and especially that they are sending more recovery emails and not leading with profit-compromising offers, is great news, because these are all best practices. It is shocking, however, and a real missed opportunity, that so few are actually acquiring email addresses with modal popups. Shoppers who abandon carts are only reachable if they’ve provided their email address, and relying on them to be far enough along in the purchase process to have provided an address before abandoning is leaving a lot – and specifically a lot of revenue – to chance.”
Kramer continues, “Yet another very surprising discovery was that even of those who use a modal acquisition tactic, relatively few send recovery emails. This is a major amount of money literally being left on the table since they have shoppers’ email addresses and the exact items they showed intent to purchase at their fingertips.”
This year’s study also includes a survey of the number of Internet Retailer Top 1000 retailers who feature product recommendations and ratings and reviews on their websites compared to those who use them in shopping cart recovery emails. In both cases, the study reports additional missed opportunities.
Listrak’s 2013 Research Report and Look Book is available for download at http://www.listrak.com. On November 5, Listrak will also offer a free webinar in which CEO Ross Kramer will report on and discuss the implications of the results.
Methodology: Listrak attempted to shop and abandon sites from all retailers in Internet Retailer’s Top 500 Guide and Second 500 Guide. If an organization had more than one brand, only one site was shopped. Listrak noted which websites had a modal email acquisition popup and which used product recommendations and/or ratings and reviews onsite. For sites that had modal acquisition, Listrak signed up for the email list through the modal. Listrak added one item to each cart and added the following information to the checkout page – first and last names, email address, address and phone number – before abandoning the sale – and then monitored the emails received for six weeks. Listrak was unable to shop six total sites.
Listrak is an omnichannel digital marketing solutions provider that works with retailers to drive revenue growth, profitability and increase the lifetime value of customers. Founded in 1999, the company’s solution suite boasts analytics technology that enhances campaign performance, shopping cart abandonment solutions that help recoup lost revenue, post purchase solutions to increase lifetime value, seamless integration across multiple platforms, as well as email, mobile, social and more. Listrak has more than a decade of digital marketing experience and works with leading U.S. online retailers, including Deb Shops, Waterford, Ten Thousand Villages, Swell, Vintage Tub and La-Z-boy. For more information, visit http://www.listrak.com.