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BizReport : Ecommerce archives : December 21, 2010

Online retailers in U.K. failing to follow up cart abandonment

The latest Email Benchmark Report from RedEye found that the U.K.'s top online retailers are particularly lax when it comes to following up on abandoned shopping carts.

by Helen Leggatt

The vast majority of British ecommerce outfits aren't following up with those that have abandoned a shopping cart. That's a lot of people - an estimated 85% of customers abandon a purchase.

Yet, all it would take is an email to recoup some of those sales. RedEye claims its clients regularly attain conversion rates of around 15% as result of behavioral email strategies, with click-through rates approaching 60%.

Nonetheless, their latest report shows just 7% of firms tested, comprising of 99 of the IMRG Hitwise Top 100 retailers, responded to abandoned shopping carts via email.

"The question is," commented Matthew Kelleher, commercial director at RedEye, "what are the other 93% doing? Apparently nothing."

As well as potentially salvaging a sale, behavioral email can also be used to find out why a consumer abandoned their cart. Was the process too long? Were they put off by delivery options? Did security issues put them off?

"Unfortunately most online companies seem to be failing to take advantage of the process," concludes RedEye's report (.pdf).

"Although simple triggers such as welcome and confirmation are being used more commonly to communicate with customers and build brand loyalty, there is little evidence that the most important triggers used to recapture lost sales and increase conversion are being used."

Tags: cart abandonment, email, online retail, shopping behavior

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