According to SurePayroll, it’s estimated that United States eCommerce sites lose roughly $20 billion in potential revenue each year to cart abandonment. Because these sales are theoretical until they’re closed, most eCommerce merchants aren’t “actively losing” that money. They simply never had it to begin with.
But just because you’re not actively losing money doesn’t mean there’s no way to actively gain it. In fact, targeting cart abandonment shoppers can open up a new stream of revenue for your business, outside of your traditional sales funnels.
Recapturing your shoppers
Cart abandonment represents a process that’s three-quarters of the way done. So far, a customer has come to your site (1), browsed your inventory (2) and added items (products / services) to their cart (3). The only step they’re missing is the most critical one: checkout (4). (To learn more about why shoppers abandon, read more here…)
For this reason, it’s important to think of cart abandonment customers not as new customers, but as “recaptures.” The difference is that you no longer have to put in the legwork of getting people to come to your site—they’ve already been there! The focus now, is on illustrating the value and benefits of the items these potential customers have left behind. There are a few advantages to keep in mind:
- You know what products they’re interested in: the cart abandonment tells you! Make sure to personalize the email/communication to keep the shoppers engaged
- You know the price range they’re looking in: it’s either at or below the value of the cart. Make sure to include a great offer or even a onetime use coupon code to close the sale – now!
- You can guess basic demographic information based on the shopper and cart items. Using Datacrushers shopper analytics and product analytics will allow you to build powerful customer segments to use for any marketing campaign
With these things in mind—as well as the “recapture” mindset—you can open up lines of communication with potential customers that speaks to them personally based on their unique tastes and geographies.
What do you stand to gain?
$18 billion is a big number for potential revenue, but how much does your online store really stand to gain from it? As it turns out, a lot!
Look at the value of your cart abandonments from the past 30 days. This is a rough figure for the total monthly revenue you would be bringing in if you had converted those customers.
Now, let’s look at a more realistic number. Take the average dollar amount of these cart abandonments, multiplied by the number of carts and you’re going to get a figure that’s more in line with potential revenue you could be seeing if you realistically convert all or some of those carts. So, 30 carts with an average dollar amount of $15 might equate to $450 in potential monthly revenue, for example.
Taking things even further, let’s say your customer retention rate is 30% and your average customer orders once a month. If you start targeting cart abandonments, you’re looking at adding 9 new customers and $135 a month in expected gains. That’s 108 new customers each year, bringing in $1,620 annually.
But you’re not done! As you compound new customers month-over-month and they place consistent orders, you start to gain exponential revenue. Your focus on cart abandonment conversions could easily climb into the tens of thousands of dollars as you create and strengthen your core customer base.
Open a new revenue stream
If you stay oblivious to cart abandonment’s, you’ll never miss the money they could be bringing in. Taking the time to see what shoppers are leaving behind, however, could open the possibility for recouping some of that lost potential and, more importantly, opening up a whole new stream of revenue for your business. Take a look at your cart abandonment’s and let the numbers speak for themselves!
Datacrushers is a revenue discovery platform and global leader in site-wide revenue recovery and acceleration
Our USP, is “USP.” User, Site Product. We carefully examine all three verticals from every which way using deep analytics, machine learning & AI along with NLP to mine data and to understand what customers are looking for and to present the best ways for merchants to discover the abandoned revenues… site wide.