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Cart and Checkout Abandonment: A Case Study
The email strategy employed by Envelopes.com Company was to send emails to multiple site shoppers. The emails were to encourage the shoppers to return, depending on where they abandoned the checkout process. According to the Marketing Sherpa (2013), the strategy was necessitated by an evaluation that showed the presence of the multiple customers visiting their site, but did not translate into sales due to cart abandonment. The results of this email strategy were two. First, the strategy reduced the rate of cart abandonment by the customers who visited the site from the email messages. In particular, the company reduced its abandonment rate by over 40% in less than two years (Marketing Sherpa, 2013). Secondly, the company increased the conversion rate of customers to check out by 65% in the same period.
A shopping cart is an online tool that is used by websites to assist online shoppers to select and pick products on sale (Farris et al, 2010). Once an online shopper includes a product in the shopping list, the cart adds its value to the final price to be paid at the checking out. Shopping cart abandonment is practice of customers leaving the website without checking out to pay for the goods in the cart, therefore no sale happens. To deal with the shopping cart abandonment, Envelopes.com employed the strategy of sending emails to online shoppers, as described above.
Check out abandonment happens when a customer has confirmed the shopping cart and proceeded to the check out where he is directed to payment. Instead of paying for the goods, the customer abandons the process at the payment stage. On the other hand, shopping cart abandonment happens during the shopping list addition in the cart. To deal with check out abandonment, Envelopes.com started an email campaign by sending emails to the clients, informing them about the products they left behind. This strategy was successful for Envelopes.com company. The success was evident as they recorded additional 24.62% check out rate (Marketing Sherpa, 2013.).
References
Farris, P. W., Neil T. B., Phillip E. P. & David J. R. (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc
Marketing Sherpa, 2013. E-commerce: Moving beyond shopping cart abandonment nets 65% more checkout conversions . Retrieved From, <http://www.marketingsherpa.com/article/case-study/cart-abandonment-checkout-conversions-ecommerce> June 17, 2014