Raiders of the Lost Cart How APMEX mined a hidden treasure from - - PowerPoint PPT Presentation
Raiders of the Lost Cart How APMEX mined a hidden treasure from abandoned orders and captured 13% of lost revenue David McCarty Vice President of Internet Marketing The American Precious Metals Exchange Case Study Background Case Study
– To bring shoppers back to website – Revisit abandoned shopping carts – Reiterate and clarify value proposition – Connect troubled shoppers with customer service
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– Primary demographic is Male, 40-65, College/Some College, Professional, HHI of $100K, $250K Investments – New and Existing logged in users with open shopping carts – Known animosity to intrusive techniques
– Open rate – Click through rate – Conversion rate – Recovery rate – Recovered revenue
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– Emails received
– Emails opened
– Emails clicked (for each 1st, 2nd, and 3rd email) – Purchases (for each 1st, 2nd, and 3rd email) – Revenue (for each 1st, 2nd, and 3rd email) – Funnel data (for each 1st, 2nd, and 3rd email)
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– Send all abandoned customers a sequence of three recovery emails –
– Send half of all abandoned customers text emails and the other half HTML emails
– What percentage of customer orders will be recovered in a set time period (one month)? – Which treatment (email type) will produce the highest recovery rate? – Which treatment (email type) will produce the highest revenue per
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– This test would help us understand how customers respond to a customer service initiated email effort on a regular basis – This test would also help us understand how customers respond to HTML style in email
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– Visits to purchase
purchase
– Days to purchase
same day
between 1 and 7 days, with the majority buying same day
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40% 11% 7% 5% 3% 3% 2% 2% 7% 7% 6% 4% 2% 1%
Visits to Purchase
(% of All Transactions)
1 visit 2 visits 3 visits 4 visits 5 visits 6 visits 7 visits 8 visits 9-14 visits 15-25 visits 26-50 visits 51-100 visits 101-200 visits 201+ visits
*Source: MarketingExperiments Data Analysis Document, May 15, 2009
– The objective of basket recovery is to bring customers back that are not already intending to do so as quickly as possible – Basket recovery best practices call for an immediate/1-hour send after cart abandonment – Visitors that are already accustomed to returning same- day to make a purchase may feel spammed
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54% 4% 3% 2% 2% 2% 2% 1% 7% 8% 7% 5% 2% 0%
Days to Purchase
(% of All Transactions)
0 days 1 days 2 days 3 days 4 days 5 days 6 days 7 days 8-14 days 15-30 days 31-60 days 61-120 days 121-365 days 366+ days
*Source: MarketingExperiments Data Analysis Document, May 15, 2009
– The customer registers a return visit before the first email
– If a customer’s cart changed after receiving a basket recovery email, and abandonment follows
– The customer receives all three basket recovery emails
– The customer replies to an actual customer service representative (by phone or email)
stop basket recovery
– One or more items in the customer’s abandoned cart are out of stock
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Email #1 24 hours Email #2 48 hours Email #3 7-days Cart Contents Cart Contents
– The first email is sent 24 hours after an incomplete order; the second email sent 48 hours after initial cart abandonment, and the third email sent 7 days after initial abandonment
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– Test against the effects of HTML formatting on customers (size, color, shape) – Mitigate possible constraints created by HTML formatting in email content
formatted
SPAM filters twice as often as text-based messages
bandwidth than text
properly
problems
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– Test the effects of HTML formatting on customers (size, color, shape) – Pictures of items from abandoned cart included
match existing email formatting
items
– Gives the customer more
APMEX.com (footer)
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– 1st email 24 hours after abandonment
buying cycle
– 2nd email 48 hours after abandonment
– Final email 7 days after abandonment
15 *Source: MarketingExperiments Data Analysis Document, May 15, 2009
– Email comes from a realistic persona
– Subject line is relevant to visitor’s recent activity
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Jana Hale, Customer Service Manager [jana@apmex.com] Joe Smith [jsmith223@gmail.com] Your Recent Purchase Attempt at APMEX.com
– 24-Hour Email
personal signature
establish a need to continue – “View updated prices...”
make it easier to bring customers back where they want to go
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– 24-Hour Email
emphasized – Quantitative statements – Logic built-in to customize statements by cart contents
phone number and support page
strongest point of value
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– 48-Hour Email
frame of emails
presentation for originality
“updated prices” and call to action to “continue”
statement in the P.S.
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– 7- Day Email
last email they will receive for this cart
value
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Text Formatted Email HTML Email
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MORE REVENUE FROM TEXT EMAIL
In Summary: This test recovered nearly 17% of abandoned orders in the checkout process and 8.28% of total lost revenue. Customers receiving text emails recovered $382.43 more revenue per abandoned customer than HTML emails. Recovery Efforts % Orders % Revenue Rev/Order
All Emails 16.83% 8.28% $1,615 TEXT 8.09% 4.47% $1,813 HTML 8.74% 3.81% $1,431
17.40% 26.73%
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Recovery Efforts % Orders % Revenue Rev/Order
All Emails 16.83% 8.28% $1,615 TEXT 8.09% 4.47% $1,813 HTML 8.74% 3.81% $1,431
17.40% 26.73%
Key Point: Customers with smaller carts responded more favorably to basket recovery efforts. Customers with slightly larger carts respond more favorably to text emails, while customers receiving HTML emails respond slightly more
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MORE REVENUE FROM TEXT EMAIL
In Summary: Unaltered continuation of test protocol has continually recovered nearly 4% of all abandoned customers in the checkout process recapturing nearly 13% of total abandoned revenue. Recovery Efforts % Orders % Revenue Rev/Order
All Emails 3.60% 12.98% $3,254 TEXT 1.87% 7.68% $3,714 HTML 1.74% 5.31% $2,759
7.45% 44.65% 34.63%
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Key Point: In continuation, TEXT only emails recovered 44.65% more revenue per abandoned customer than HTML emails, and saw a 215.41% increase in open rates even though the subject lines were identical. Recovery Efforts % Orders % Revenue Rev/Order
All Emails 3.60% 12.98% $3,254 TEXT 1.87% 7.68% $3,714 HTML 1.74% 5.31% $2,759
7.45% 44.65% 34.63%
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INCREASE FROM LONG- TERM EXPOSURE
Recovery Test Protocols
Recovered Orders Recovered To All Orders % of ALL Revenue
Basket Recovery - 8/7 -9/7/2009 173 1.74% 0.68% Continuation 2/1 -2/28/2011 780 4.12% 3.04%
350.87% 136.78% 347.06%
Key Point: Long term exposure to Basket Recovery efforts, building rapport, trust and continued brand recognition, results in increased revenue gains and average order recovery.
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Test Styling
formatted as TEXT, HTML with images, TEXT with images and email templates
Test Email Cadence 6 Hrs, 24 Hrs, 48 Hrs, 72 Hrs, etc. Test Messaging
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existing site traffic without increasing marketing expense. Without it, you are losing revenue to shopper apathy, interruptions and ultimately to your competitors
preference and response rates – the differences can be significant and surprising
Focus on a Customer Service perspective, emphasizing and clarifying value statements while supporting these with additional contact methods to build rapport and gain trust with your customer
Continuance, even without changes or additional testing, may result in significant gains, simply by way of customer familiarity and increased brand recognition and top of mind awareness Consider follow up test options to further hone and perfect your systems
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