E-commerce can be a tough business.
To grow, you’ve likely spent most of your time and money trying to bring new visitors to your site.
The sad fact is that about 97 out of every 100 people who visit your site will never come back.
Ouch!
But it’s nothing personal, the internet is a gigantic place, and people have a hard time making a decision when more and more options (your competition) come online daily.
That doesn’t mean you have to take this fact lying down…
You can follow up with your potential customers and help them decide to spend their money with you instead of someone else.
In fact, if you’re one of the few companies to avoid this mistake, you can dominate your competition.
So, how do we solve the problem of people bouncing off your site?
We start by look at their behavior and tease out their intentions, then follow up accordingly.
For example:
If someone lands on your homepage and immediately leaves, it probably means they don’t have any interest in your site or your products.
But, if that person browses multiple products on your site and even adds three or four to the cart, that person is at least considering your products.
In fact, the #2 reason for people leaving items in their cart without purchasing is, “I was just conducting research.”
Research = Intent to buy.
So let’s make sure you’re doing everything you can to have them buy from you and not one of your competitors.
The most cost-effective way to do this is with behavioral email marketing.
According to the Direct Marketing Association:
- Email marketing accounts for more than 7% of all e-commerce user acquisitions. This makes it the 2nd most effective acquisition channel (behind search at 15.8%).
- Email marketing delivered an average ROI of $38 for every $1 spent in 2015, and that figure jumped to $44 for every $1 in 2016.
If you could get $44 for every dollar spent, how many dollars would you put into email marketing?
That is why my company Loyal Tribe specialize in email campaigns that are sent based on customer behavior.
And one of the most profitable campaigns we send for all of our clients is the Cart Abandonment email campaign.
The campaign works like this:
A visitor places at least one item into the cart on your website, and then they leave.
Within the next hour, they are sent an email reminding them they have items left in their cart and are given a link to complete their purchase.
This strategy works because we are sending emails based on their behavior, which tells us about their intentions.
In other words, this email is highly relevant to their behavior, which increases their engagement with the emails.
On average our cart abandon emails have a 51% open rate and a 9.8% click-through rate. That means that 9.8 people out of every 100 that are sent that email return to their cart.
And we don’t stop at just one email follow up, to achieve these numbers you need to be following up three to four times with each potential customer to maximize your results.
But the critical number to know is how much do these emails make you?
Our software partner Klaviyo analyzed over 3,127 abandon cart email campaigns and found that they average $5.81 per email recipient!
So, if 1,000 people abandoned items in your cart, an effective cart abandon campaign would be worth an average of $5,810.
Getting paid for people that didn’t buy the first time is a damn good deal.
And the best part is someone who has purchased from you before is 50% more likely to do it again.
You not only acquire a paying customer, but you are also building a list of active buyers who will likely buy from you again and again.
The reason Facebook, Google, and Amazon are crushing it because they own your access to new customers. Building your email list allows you to take control of your customers and communicate to them without having to pay the gatekeepers again and again.
If you’re interested in adding 10-25% more revenue to your e-commerce business in the next 90 days with a tested email marketing strategy, please send me a direct message or email me at daniel@yourloyaltribe.com
We can have a short 15 minute talk to see what the opportunity is for email in your business.
