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BizReport : Ecommerce archives : August 17, 2010

Listrak: Only 15% of etailers addressing cart abandonment

With more and more consumers shopping online, it makes sense that etailers are refocusing their ad dollars to online avenues, but according to a recent report these same etailers are ignoring an on-going problem: shopping cart abandonment. According to the report only about 15% of etailers have programs in place to help re-engage consumers.

by Kristina Knight

listrak.jpgOnline retailers aren't doing enough to recoup the almost $18 billion in shopping cart abandonment losses according to a new study from Listrak, an email marketing hub. What's more, less than half of online retailers are paying attention to the number of consumers who log on, begin shopping and then leave.

"It's astounding that so few e-retailers have a shopping cart abandonment strategy in place when the resulting revenue and customer re-engagement is so great," said Ross Kramer, Listrak CEO. "Email is the most effective marketing channel with the greatest ROI and automated cart abandonment campaigns to follow suit in being the most cost effective way of closing sales and increasing revenue."

How big a problem is cart abandonment? Studies have shopping cart abandonment rates between 51% and 60% of online shopping sessions. So, if an etailer has 100 people logging on to browse products daily, at least 51 of them are leaving without converting. That is a large problem. While many etailers are focusing on the new consumers logging on daily, this study suggests that marketers need to take a different approach to include attention to cart abandoners.

Listrak offers this example, "Automated shopping cart abandonment campaigns are proven to produce 10-20 times the conversion rate of a typical email campaign. As one example, Movies Unlimited, the largest online movie retailer, has an automated campaign in place that achieves a 13% conversion rate. The campaign generates 10% of the company's email marketing revenue while accounting for only 1% of the volume."

Tags: ecommerce, email marketing, Listrak, online shopping, retargeted ads, shopping cart abandonment

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  • It is indeed astounding. However the digital media ecosystem is changing rapidly and failure metrics (online abandonments) are finally starting to be addressed. Leads from shopping cart abandonments are potentially highly lucrative. Digital shopping is a lifestyle choice now and yet the industry average for online abandonment mid transaction is around 60 percent and only increasing with comparison shopping. The clever science (the technology) now exisits in the UK to track abandoned leads (ie. people who are not already registered with a web site, or who closed their browsers down mid transaction). The real art is that of responsible, sensitive, customer-service orientated remarketing...



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