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  • Anatomy of the Perfect Cart Abandonment Email

    Anatomy of the Perfect Cart Abandonment Email

    With cart abandonment rates hovering at almost 70%, your ecommerce store needs to be jumping on every opportunity to get shoppers to complete their purchase. One of the easiest, and arguably most underutilized, tactics to recovering those abandoned carts is sending a well-timed and relevant email after a cart has been abandoned.
    Recovering even a fraction of the revenue potential of those abandoned carts can be a big win. Interestingly, well-timed emails can have a conversion rate of up to 6% and recovered purchases often have a higher average order value (AOV) than normal making them well worth the effort.

    Essentials of a Cart Abandonment Email

    Crafting an effective abandoned cart email starts with understanding why those carts became abandoned in the first place. Often, carts are left because of a distraction, there wasn’t enough time to complete the process or something caused the shopper to hesitate.
    But because people were close to buying before they were interrupted, many purchases can be recovered with a cart abandonment email. The best performing emails that recover the most revenue tend to have these 5 key elements.

    1. The Right Subject Line

    The highest performing subject lines across 500 global brands were those that were personalized with the customer’s name or the name of the abandoned product with 46% and 44% open rates, respectively. Emails whose subject line included the merchant’s name, sounded like they came from customer service or had an urgent tone also performed well, with open rates of over 40%.
    Source: Shopify
    This email from Grove does a great job personalizing the email subject line and body of the email. Grove also deserves bonus points for creating a sense of urgency by mentioning that the shopper’s cart will expire in 3 days.
    Apart from having the highest performing open rates, emails which included the customer’s name in the subject line also tend to se the highest conversion rates.

    2. Sending at the Right Time

    Research from SaleCycle, which analyzed the results of cart abandonment emails from 500 global brands, also found that emails sent exactly one hour after the customer abandoned their cart had the highest conversion rates, at 6.33%. Interestingly, sending an email at virtually any other time resulted in steep drop offs in conversions. Emails sent within an hour of cart abandonment only converted 3.14% of the time and emails sent later than one hour after abandonment (but less than 24 hours after) converted at an average of 3% of the time.
    If your cart abandonment emails are sent more than 24 hours after the cart is abandoned then you’re losing out even more. Only 1.74% of carts are recovered at that point.

    3. Include the Product Left Behind

    The goal of every abandoned cart email is to get your customer back to your online store to complete their purchase. The reason they had added products to their cart in the first place was because they were interested. That’s why your email should prominently show off the products that were left. Large images and detailed descriptions will ensure the customer knows exactly which products you’re talking about.
    MADE.com makes it clear which products were in the cart and the multiple, bright CTA buttons make it easy to return to their website.

    4. Have a Clear Call to Action

    Calls to action (CTAs) on cart abandonment emails need to be relatively straightforward. There’s usually two related goals — to get users back to your website and to complete their purchase. Effective CTAs should be prominent and use clear phrasing like:
    • “Complete checkout”
    • “Check out now”
    • “View your cart”
    • “Complete my order”
    Source: Pinterest
    Under Armour does a good job including multiple CTAs with one prominently displayed in an already eye-catching header image and another directly below a large image of the product. Both buttons are large, hard to miss and located in logical places within the email.

    5. Give an Extra Push

    The top reason consumers abandon carts is because the final cost is too expensive. Including an incentive with your order may work to overcome lingering buyer hesitation.
    This email from NOMAD below makes it clear right from the beginning that they’re willing to be flexible on price with their personalized subject line. The 15% off coupon they do offer is also a large enough discount to be enticing and, at the bottom of their email, they highlight their free shipping policy.
    Source: Shopify
    Quickly, NOMAD has taken care of the two biggest pain points cart abandoners have and greatly increase their chances of winning back that business in the process.

    Don’t Miss Out on Revenue

    Sending cart abandonment emails costs virtually nothing and can recover revenue that many ecommerce merchants assume is lost forever. It’s also not difficult to incorporate all the elements winning cart abandonment emails have. With a little perseverance and A/B testing, you will be recovering revenue to make a noticeable difference on your bottom line.

    More Great Resources From Around the Web

    Originally published at www.paymotion.com on September 21, 2017.
  • 5 Simple Ways to Get More Out of AdWords

    5 Simple Ways to Get More Out of AdWords

    AdWords is a proven way to drive converting traffic to ecommerce sites, and there are numerous ways to optimize campaigns. But with limited resources, how do you know which ones are more worthy of investing your time and money? Here are five simple yet effective tips you can implement right away that will have a significant impact on the effectiveness of your AdWords campaigns.
    Tip 1: Use Negative Keywords
    If you use broad match or phrase match keywords without negative keywords, you’re likely paying for clicks that won’t get you conversions. This is a huge waste of your budget.
    To figure out what negative keywords to use, check the keyword variations for your ads are showing that don’t make sense for your business. If you’re unsure of how to do this, there is an easy way to check. Under “Your Campaign,” click on “Keywords” in the top menu. From the “Details” dropdown menu, select “all.” Then choose “Search Terms” and this will show you all the search terms that have resulted in a click. You can select the terms and add them as negative keywords right from there.
    Tip 2: Implement Ad Schedules
    In AdWords, you can identify your high-converting time ranges, and by scheduling accordingly you can greatly improve the effectiveness of your ad dollars. If you’re a B2C business you might find that most of your conversions mostly happen outside of the 9-5 work day because customers are shopping in the early morning or evening, whereas B2B businesses may find the opposite to be the case.
    Tip 3: Add Site Link Extensions
    Site links give people more options to navigate your site directly from search results. This makes it easier for them to find exactly what they’re looking for. If a lot of people are searching on your brand name, but are clicking through to a deeper category or product page, include a sitelink within your ad to provide those searchers with single click access to the information they are looking for.
    Tip 4: Implement AdWords Remarketing
    AdWords remarketing will show your ads to people who visited your site but didn’t complete a required action. It enables you to reconnect with these visitors and keep your brand top-of-mind. There are several types of remarketing you can try on the AdWords platform, just one should help you to start boosting conversions.
    Tip 5: Use High Intention Keywords
    Although bidding on high volume search terms can increase your clicks, if the search term is too generic these keywords can often be less effective than lower search volume keywords that target people in a buying mind set.  For example, a broad term with a high search volume like “accounting software” could result in more clicks, but probably far fewer conversions compared to a longer more specific term, like “online accounting software for mac.”
    Don’t Blow Your Budget
    AdWords is a great way to get more traffic to your ecommerce site. But if it isn’t the right traffic and no one is converting, then it’s a waste. Whatever you end up doing, make sure to track improvements so you can further optimize!
  • The Ultimate Guide to Ecommerce KPIs

    The Ultimate Guide to Ecommerce KPIs

    Every business needs the right data to measure the effectiveness of current strategies and to plan for future success. But while there are many Key Performance Indicators (KPIs) that can be tracked, it’s important to choose the most relevant mix for your business and your current goals in order to be effective.
    That’s why I’ve put together the most commonly tracked, impactful ecommerce KPIs and their uses so that you can determine the best set to monitor your business’s online performance from attracting customers to converting buyers online.

    Sales Funnel Goals and Performance KPIs – An Overview Of What I’ll Cover

    When it comes to tracking your success, most businesses choose goals that focus on leads and closed sales. To understand the effectiveness of your strategies at different points in your sales funnel, many break out their tracking into general phases in the sales cycle on top of broad revenue performance.
    • Awareness KPIs
    The awareness stage of the buyer’s journey occurs when consumers are just becoming aware of your product or service. These KPIs reference how an audience notices and responds to your ads and social media campaigns.
    • Engagement KPIs
    The engagement stage consists of both interets and consideration and sees potential customers interacting with your content to get more information on the products and services you provide. These KPIs focus on how prospects interact with your site and ad campaigns.
    • Conversion KPIs
    These KPIs track how effective your business is at turning visitors into customers. These KPIs track the actions your prospective customers are taking, whether it’s a trial sign-up, a sale or something negative like an abandoned cart.
    • Revenue KPIs
    These KPIs relate to sales and growth.
    • Customer Retention KPIs
    These are critical indicators since they relate directly to your financial health and growth. These KPIs detail how effective you are at getting customers to stay or return and generate positive reviews.
    If you’re ready to dive into the details, keep reading!

    Awareness KPIs

    One of the most important insights for ecommerce businesses is determining how people discover you. You can’t win new customers if they can’t find you or know that your solution exists.
    Here are five ways to see how your different channels resonate with an audience at the top of the funnel.
    Channel: Organic Search
    KPIs: Average Position, Impressions, Click-Through Rate
    Organic search measures visitors to your website through search engine results, as opposed to advertisements or inbound links. These center around what people actually put into search engines, making it important to track KPIs related to these keyword terms rather than looking at your overall traffic referrals from organic search.
    Luckily, Google Analytics makes it easy to track your average position, impressions andclicksthroughs coming for specific search terms. These three KPIs are defined as follows:
    Average Position: The average rank that a particular page appears in results for certain search terms over the period of time you’re tracking.
    Impressions: The number of times your page appears on a search engine page regardless of whether it is clicked on.
    Click-Through Rate: The number of clicks on your result divided by the number of times the entry appeared (impressions)
    To find these KPIs, go into the Acquisition tab of your Google Analytics account and hit Search Console > Queries. If you don’t have Search Console configured in your analytics account yet, here’s how to do it.
    (Courtesy MOZ Blog)
    The data from this study is pretty compelling:
    • over 71% of searches result in a page one organic click
    • only 5.6% of clicks are happening on pages two and three
    • the first five results on the first page get over 67% of all clicks
    • results six through 10 only get 3.7%
    Your average rank and the impressions and clicks that come from it are essentially a test of your site’s Search Engine Optimization, or SEO, for certain target terms. Obviously, if you can get on the first page of results for what your customers would be searching for, it can be a huge boost to your visibility. If your SEO needs improvement check for elements that could be hurting your search rankings.
    Channel: Paid Search and Advertising
    KPIs: Clicks Per Conversion, Cost Per Conversion, ROAS, Sales Accepted Leads
    To bolster your visibility with search engine marketing, all search engines have options to have paid advertisements or listings on their results pages. Google is the obvious leader with over 78% of the U.S. search market and 77% of the global market. But if you’re targeting other countries you need to make sure you know which paid programs to invest in. In China, for example, Google may not be your best choice.
    You can choose to pay either per click or per impression, and the more demand for a keyword or phrase related to your business, the more expensive bids on it will be. Ideally, you should be aiming to get both your clicks per lead and your cost per lead as low as possible to maximize your return on ad spend (ROAS).The KPIs included in this bucket can be defined as follows:
    Clicks Per Lead – The number of total clicks on an ad divided by the number of leads brought in by that advertisement, expressed as a percentage. Alternatively, in a B2C business, you can track clicks per sale.
    Cost Per Conversion – The total spend on a campaign divided by the number of leads it brought in, expressed as a percentage.
    ROAS – This metric measures gross revenue generated for every dollar spent on advertising. It is an advertiser-centric metric that gauges the effectiveness of online advertising campaigns. ROAS = Campaign Revenue / Campaign Cost.
    Sales Accepted Leads (SALs) – Usually only applicable in a B2B sales cycle, SALs are leads that have been qualified by marketing based on pre-defined criteria and passed to the sales team.
    All ad platforms offer numerous features to optimize your paid campaigns and your target KPIs. Therefore, it’s worth familiarizing yourself with all the functionality offered to make sure that your ad budget is wisely spent. For example, you might want to explore:
    While we’re on the topic of A/B testing, check out this blog article for some great ideas on testing your cart checkout page.
    Channel: Social Media
    KPIs: Audience Reach, Impressions, Engagement, Clicks
    The amount of time people spend on social media makes it a prime channel to generate awareness. With effective attribution modelling in place, you may be surprised at just how much these social efforts actually contribute to your bottom line.
    There are a few different areas that you can focus on –  audience reachimpressionsengagement and clicks. These are defined as follows:
    Audience Reach –An aggregate of your followers across your social channels.
    Impressions – Total number of times a post or page has been seen by users.
    Engagement – This is another aggregate number that can include likes, reactions, retweets, comment and shares.
    Clicks – The number of users clicking through to your website or posts from a social channel.
    These metrics (both organic and paid) can be tracked across the different platforms including Facebook, Twitter, LinkedIn and Google+  using their native insights or analytics interfaces, or through social aggregation tools like FanPageKarma.If you’re looking to better track, measure and understand your social channels, here are 26 free social media analytics tools for you to try.
    Channel: Earned Media
    KPIs: Earned Media Mentions
    Earned media is a particularly powerful way to grab the attention of potential customers. It refers to publicity gained through media without paid advertising. There are a number of solutions that crawl the web and social media looking for earned media mentions, one of the most powerful is included in Salesforce’s Social Studio. Earned media defined:
    Earned Media – total number of mentions of your brand by third parties where you weren’t paying for advertising.
    These mentions can also provide backlinks which are extremely valuable for SEO. There are services that incorporate these mentions to calculate your overall influence on the web including Klout, which will calculate your influence and give a score between 0 and 100. The more mentions and influence you have online, the better your chances of attracting more customers.
    Customer Acquisition Cost
    Regardless of the channel used to attract the attention of new potential customers, your customer acquisition cost is the general metric used to track the success and sustainability of your campaigns.
    Customer Acquisition Cost: Simply put, it is calculated by summing all your marketing expenses and averaging on a per new customer basis.

    Engagement KPIs

    Once shoppers are aware of your business and have a need that your business can meet, you can start to see how your mid-funnel is performing in moving them towards a conversion. Generally, you’ll be most interested in how they’re engaging in the customer journey and the path they take to hit the checkout button.
    Here’s how to understand the resonance of your difference channels with an audience during their interest and consideration stages.
    Channel: Ecommerce Site & Landing Pages
    KPIs: Time on Page, Page Views, Bounce Rate, Micro-Conversions
    Your ecommerce site is likely the most important tool you have to turn browsers into customers. That’s why you want to ensure that users are engaging with the content on your site or landing pages
    The time on page, page views and bounce rate can be particularly informative. They tell you which pages are cluttered, confusing or have hard to find links. Here are the definitions:
    Time on Page: The average amount of time users are spending on a webpage.
    Page Views: The number of pages viewed by visitors.
    Bounce Rate: The percentage of visitors who navigate to your webpage, then leave without clicking anything to navigate to another part of your site.
    Micro-Conversions: These can represent a number of things based on your specific goals for your specific sales funnel. It could be a click-through to a checkout page, a newsletter sign-up or creating an account. Most importantly, they always represent forward progress in the buyer’s journey. They can be tracked as either goals or events in Google Analytics.
    The number one thing these KPIs tell you is how closely visitors are reading your content and considering your product. If you want to boost time on page and lower your bounce rate, try adding white space, rearranging your landing pages or testing content changes. Investigate and test webinars, videos, infographics, more use of emotionally engaging imagery, quizzes and surveys.

    Conversion KPIs

    All your efforts have pointed prospective shoppers to this point. It’s where shoppers either finally cross the boundary and become your customers or they hesitate and leave. Understandably, this is a critical stage to monitor because it has such a huge impact on your overall success and revenue.
    Channel: Checkout Page
    KPIs: Conversion Rate, Cart Abandonment Rate, Failed Transaction Rate
    A broad measure of how successful you are at conveying value while alleviating anxiety and hesitation is your conversion rate and cart abandonment rate. If you can’t close the sale, you need to figure out what is causing people to hesitate and abandon their purchase just before they check out.
    Conversion Rate: The percentage of visitors to your site that have completed a purchase. This calculation is can be handled automatically by most analytics programs, including Google Analytics, assuming that you have set your goals for the program to track.
    Cart Abandonment Rate: The number of shoppers who navigate to the checkout page but fail to complete a purchase.
    According to Baymard, the average cart abandonment rate is around 70%, although this number varies depending on the industry. Some of the most commonly cited reasons to abandon a purchase before checking out include excessive fees at checkout (taxes, shipping, handling), requiring mandatory accounts for purchases and long, complicated checkout processes.
    Some well-established ways to increase conversion rates include a simple checkout, a localized customer experience, security seals and multiple payment options.
    Declined transactions can also quickly add up to a lot of missed revenue. To keep your failed transaction rate as low as possible, you can offer multiple payment options and integrate with more than one payment gateway so that if the first attempt fails, another gateway is automatically attempted.
    Failed Transaction Rate: The percentage of transactions that are declined because of a payment issue divided by the total number of transactions.
    You can also implement retry logic and a dunning management system to recover failed transactions for recurring payments. Retry logic attempts to charge a card again at a different time, while a dunning management system alerts the customer of a failed transaction and prompts them to update their payment information.
    Finally, if you try to increase your revenue with upsells or cross-sells in your checkout path, you can monitor the success through average order value.
    Average Order Value: AOV is calculated by simply dividing your total revenue by the number of sales for any given period.

    Revenue KPIs

    Revenue is important to track not only to understand the current health of your business but also to plan for your future strategies and growth. While it may seem obvious that you want this to be increasing, be sure to segment to understand where and how you are earning the most revenue.
    Revenue Sustainability
    KPIs: Customer Lifetime Value, CLV:CAC Ratio, Refund Rate, Chargeback Rate
    While all companies track their revenue growth, successful ones understand their revenue sustainability so that they can predict their future earnings. This means accounting for average revenue and costs on a per customer basis in addition to monitoring sources of missed revenue opportunities.
    Customer Lifetime Value (CLV)
      provides an indication of the average revenue to expect with each new customer you win. The simplest version of the CLV formula is Average Order Value multiplied by Average Retention Rate multiplied by your number of repeat transactions, therefore:
    • CLV = (Average Order Value) × (Average Retention Rate) × (Number of Repeat Transactions)
    • Where Average Order Value = (Total Sales) ÷ (Order Count), and
    • Average Retention Rate = ((Total Customers – New Customers) ÷ (Old Total Customers)) × (100).
    It’s vital to optimize this KPI to get a more robust and predictable revenue stream. With selling to existing customers being much easier and less expensive than attracting new ones, you need to ensure your customer’s experience after purchase is excellent. If your customers aren’t finding success with your product, you’ll quickly see your refund and chargeback rates rise with no repeat purchases. Therefore, stay focused on the value you provide your clients or refunds and chargebacks will start to gut your revenue. Read more about CLV and how to improve it here. 
    Chargeback Rate: When a bank forcibly initiates a return of funds to a customer. This typically occurs when a customer complains about a card charge to their bank, who then reverses the transaction made with a debit or credit card. The Chargeback Rate is the percentage of all transactions that result in a chargeback.
    Refund Rate: The number of refunds given over an amount of time, divided by the total sales over that same period.
    Chargebacks can be particularly costly. In addition to a fee charged by the bank, if a merchant’s chargeback rate tops 1%, they are usually suspended from a payment gateway. Minimize chargebacks by being up front and clear about payments, deal with customer service issues promptly, keep good records and watch for the signs of fraud.
    Calculating a CLV:CAC ratio can tell you if your costs to attract new customers is sustainable, specifically by comparing the average Customer Life Value (CLV) with the average Customer Acquisition Cost (CAC). Unlike other, more versatile KPIs, the CLV:CAC ratio tells you only one thing: whether you’re spending too much to acquire new customers by channel.
    CLV:CAC Ratio: Otherwise known as Customer Lifetime Value: Customer Acquisition Cost Ratio, measures the average revenue derived from each new customer against the cost to acquire them.
    If you want to improve your CLV:CAC ratio, there are a few things you can try. Rethink your advertising campaign, try focusing on different demographics, or try to better incentivize your current customers to keep coming back.

    Customer Satisfaction KPIs

    The question then becomes – how do we tell if our customers are happy? While high refunds and low sales can give you an indication that something needs to be improved, it doesn’t provide qualitative customer feedback that you can use. This is where Net Promoter and Customer Satisfaction Scores become invaluable.
    Net Promoter Score
    Word-of-mouth has always been one of the most important forms of advertisement. But before the internet, it was very difficult to calculate. Surveys tend to be the best way to find your customer’s opinions and whether they’d recommend you to their friends. When retailers began sending these surveys online, the response rate shot up and the Net Promoter Score (NPS) became one of the most important KPIs for determining customer satisfaction because it indicates how likely your customers are to generate positive word-of-mouth referrals.
    To calculate your NPS, the first step is to ask your customers to rate themselves on the Net Promoter Scale. Ask them to rate how pleased they were with the product on a scale from 1-10. The answer represents how likely customers are to recommend your business to their friends.
    • Scores of 9 or 10 mean the customer is a Promoter for your company. They were pleased by the service they got and are very likely to recommend you to their networks.
    • Scores of or 8 are disregarded. These customers were pleased with your service, but not enough to recommend you reliably and consistently.
    • Score of 6 or less represent Detractors, customers who weren’t satisfied with your service and are likely to tell their friends to avoid your services.
    The calculation for NPS is as simple as subtracting the percentage of customers who are Promoters from the percentage of customers that are Detractors. This will result in a score that ranges from -100 to 100.
    A good NPS varies by industry but is usually above 75, and hopefully, close to 100. If your NPS is struggling, look for ways to personalize your sales process or provide more exceptional service.
    Customer Satisfaction
    Customer satisfaction might seem like an obvious KPI, but it’s one of the most difficult KPIs to track accurately. Customers who go out of their way to rate your business or fill out a survey tend to have extreme opinions, either positive or negative.
    If you do send out a survey, try to gather as much relevant data in as few questions as possible. A great one is “How likely are you to recommend our business to friends and colleagues?” (See Net Promoter Score for how to use the answer).
    Repeat Customer Rate
    Your Repeat Customer Rate (RCR) represents the percentage of your customers that come back for multiple purchases. This metric is great indicator for your customer retention, loyalty and product value, which are traditionally difficult to calculate. This KPI is most often used by strategic business leaders, marketers and customer service representatives to evaluate performance.

    Wrapping It Up

    KPIs are essential for monitoring the health of your business and planning for the future. However, for ecommerce businesses especially, certain KPIs are going to be more telling than others depending on what your goals are, and these can change over time.
    These big numbers can mask problems that you need to identify to continue to be successful. Data segmentation by time period, demographics, region, lead source or other variable is essential for finding and fixing revenue leaks or identifying untapped opportunities.

    Sometimes patterns that aren’t visible over days or weeks become visible when you examine the data for months or quarters, and vice versa. Once you find out what’s working well and what isn’t, you can invest in strategies that move the needle further in the right direction.
    Good luck and happy measuring!


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