mGage Blog

Shopping Cart Abandonment

SMS stops us abandoning shopping

Basket abandonment is unavoidable; no business will ever achieve a 100% conversion rate because not every visitor sets out to buy a product – many are just researching their options. However, by understanding why consumers are likely to abandon their basket, businesses can significantly improve engagement (and re-engagement) levels and so reduce lost sales.

Most of the 53% of consumers who abandon their shopping (the current average), tell us that the reasons they don’t complete a purchase are most likely to be high shipping costs and forced registration. This is a huge problem for online retail, so what can marketers do to improve matters? A key change they can make is to change the channel through which they look to re-engage consumers once they abandon their basket.

Retargeting with SMS

On average, less than half of basket abandonment follow-up emails are opened. An alternative solution to combat basket abandonment and win back lost customers is SMS.

Not only is an SMS more likely to be accessed in real-time but it can be used to compliment a retail mobile web experience and drive m-commerce sales. It is also popular with consumers; research shows that 90% of consumers prefer multichannel options for interacting with businesses, with SMS topping the list. So, by integrating SMS into the re-engagement process, companies can simplify and optimise the path back to the basket.

The power is in customers’ hands

An added benefit of using SMS in the re-engagement process is that all messaging solutions are permission based so empower consumers to decide if and when they will interact with brands. Furthermore, messaging solutions cannot track users without their knowledge, making them ideal for today’s privacy-aware mobile user.

Top tips for re-marketing

  • Don’t let the opportunity go cold – the best conversion rates from re-marketing are achieved by reaching out to a customer within an hour of cart abandonment occurring. Act quickly to maximise your ability to directly connect with the customer before he/she has moved onto a competitor’s web site or cooled their interest in your offer.
  • Use a service-led message – customers respond extremely positively to re-marketing activity that is based on providing a service to help them overcome the problems they experienced on a web site and understand the reasons why they abandoned.
  • Vary the re-marketing channel according to the value – high-value basket items with the highest margins of profit should be valuable enough to justify using outbound phone calls to re-market to a customer with an abandoned cart. Lower value baskets can be targeted with email or SMS based re-marketing activity.

Don’t despair, you can have it all

An effective shopping cart recovery strategy becomes even more attractive when you consider that abandoners spend 55% more when remarketed. There are a variety of ways to remarket a customer who has gone astray, but the best way to manage this is to open and build a dialogue with the customer. Building a mobile data asset is an innovative way to counteract the mobile retargeting problem and pairing this with messaging allows companies to re-engage and create a two-way mobile conversation, encouraging the potential customer to complete their purchase.

There is a personal aspect to messaging and with 90% of messages being read within the first three minutes, the captive audience directly changes the brands’ ability to reach the customer, guide them to the next step in the purchase path, and win back the sale.

For more information, please contact us.

The information included herein is distributed for informational use only; it does not constitute legal advice and should not be taken as such. All clients are responsible for meeting legal requirements and other rules that apply to their messaging programs. Consultation with legal counsel is strongly recommended.

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