Despite the boom in online shopping as a result of the coronavirus pandemic, many eCommerce businesses are losing money due to high shopping cart abandonment rates.
According to data gathered by the Baymard Institute, 69.57% of shopping carts are abandoned by shoppers. Broken down by device, the highest rates of cart abandonment are from mobile phones (86%), followed by tablets (81%) and desktops (70%).
Collectively, eCommerce brands lose an astonishing $18 billion in annual sales revenue due to cart abandonment, according to Forrester Research.
But why do shoppers skip the checkout process? They cite a variety of reasons, including high prices, extra charges (like shipping costs), a complicated checkout process, and websites that don’t appear trustworthy.
Fortunately, you can significantly boost your online store’s cart abandonment recovery by optimizing your business’ lifecycle marketing framework.
What is Lifecycle Marketing?
The term “lifecycle marketing” was originally coined by Infusionsoft to describe a customer journey that is designed to boost sales and maximize customer lifetime value (CLV). When implemented correctly, lifecycle marketing can help you engage your prospects, convert them into customers, and transform them into brand advocates.
Lifecycle marketing is divided into four main phases:
The Attract phase is focused on identifying your ideal customers, understanding their pain points, and drawing them into your business with your marketing efforts. You could use lead magnets and sign-up forms to collect their information and nurture them further.
The Engage phase is all about building a relationship with those leads and winning their trust. This phase involves helping your leads understand their problem, as well as identifying the solutions to their problem. By educating them and providing value, you’ll win their trust and show them that your business can alleviate their pain points.
Once you’ve solidified a relationship with your leads, you can then move on to the Sell phase. After the initial selling offer, you may have to work to close that sale (i.e. fight the cart abandonment syndrome).
Even after you’ve closed the sale, you should make every effort to delight your customers and maximize their customer lifetime value. This is where the Wow phase comes in. By going above and beyond with superb customer service and other perks, you’ll turn a one-time customer into a repeat customer—and this customer is sure to recommend you to their circle.
At Chronos Agency, we’ve implemented the lifecycle marketing framework via three high-ROI marketing channels: email, SMS, and mobile push. By leveraging these three marketing channels and augmenting them with LTVplus’ complementary services (specifically their cart abandonment recovery service), you’ll see fewer abandoned carts, process more sales at checkout, and create lifetime customers.
Engaged Lapsed Customers with Email Marketing
Email is a highly versatile channel and can be customized to fit many of your marketing goals. When executed correctly, email marketing can be a major source of revenue for your business, and the most successful eCom stores generate 30-40% of their sales from their email marketing efforts.
When it comes to recovering lost sales, an important part of your email marketing strategy is the creation of an effective cart abandonment flow. This involves personalizing your communications with your shoppers to pique their interest and nudge them to complete their purchases.
Depending on your eCom platform, you may already have a functioning cart abandonment flow. Shopify stores come with a standard flow, though CRMs like Klaviyo allow greater customizations and targeting in their flows.
Klaviyo allows you to customize the content in your cart abandonment emails, as well as branch the flow based on factors like the value of the item in the cart. The flow is triggered every time a shopper starts a checkout but fails to complete an order.
If you have more than one message in your flow, Klaviyo will check your flow filters before each SMS or email is sent out. This ensures that shoppers won’t receive the other messages in your flow if they complete their purchase after the first email is sent.
Cart abandonment recovery emails can be friendly and highly personalized reminders that encourage shoppers to complete their purchases.
Check out this example we created for one of our beauty clients:
Aside from the casual and emphatic tone, the shopper was also offered a major incentive: a promo code that unlocks a special discount. Other great features include a link back to the store (to enable the shopper to complete their purchase), as well as a deadline before the offer expires.
You can also incentivize shoppers by leveraging features like Klaviyo’s dynamic content block and go-to-cart button. The former allows you to add images, links, and other elements to your email. The latter, as the name implies, redirects the shopper back to their cart.
Personalize the Customer Journey with SMS Marketing
SMS should be an integral part of your lifecycle marketing framework as it supports your other marketing channels. It also has high to almost guaranteed deliverability. Aside from your cart abandonment emails, you can also use SMS to send cart recovery reminders to customers.
With Black Friday and Cyber Monday (BFCM) just around the corner, you could use SMS to reach and engage more customers, resulting in increased sales. During BFCM, your SMS cart abandonment flows could be exclusive to your BFCM deals, products, or sales. Just make sure to differentiate the information found in your emails and SMS, and take advantage of flow filters and segmentation to optimize relevance.
Services like Postscript allow you to create automated cart recovery campaigns via SMS. All you have to do is write the messages you want to send, then decide how long you want to wait before sending your initial SMS message and follow-up messages.
Augment Your Efforts with Mobile Push Notifications
For your email and SMS messages to meet their intended objectives, their recipients need to open and read them first.
Push notification marketing sends updates about your online store’s services and products via browser notifications. This makes them a complementary channel to pair with your two other cart abandonment recovery channels—email and SMS.
And since push notification marketing requires the users’ permission to activate, those who receive your notifications are more likely to open them and respond to the call-to-action. Since they’re permission-based, mobile push notifications have an open rate as high as 90%.
For more information about this marketing channel, check out this introductory guide.
Close the Sale with Recovery Specialists
The entire cart abandonment recovery process requires a human touch to ensure a successful outcome and to keep your customers engaged. LTVplus guarantees both outcomes with its dedicated human cart abandonment recovery specialists.
By engaging with shoppers via text, email, phone, and chat, shoppers get a highly personalized experience and will be given access to exclusive deals that incentivize order completion. This could result in the recovery of more than 20% of your abandoned carts, resulting in a major boost in sales and revenue for your store.
Want to learn how Chronos Agency’s lifecycle marketing framework can help you boost your store’s key metrics—including average order value, customer lifetime value, and cart abandonment recovery? Book a free strategy call today and find out how we can help you scale your business and your profits.