A Guide to Recovering Abandoned Carts
Let's analyze the potential profit you could be missing out on due to abandoned checkouts. Consider the following scenario based on your store's metrics:
Daily Sessions: 5,000
Checkout Rate: 3.5%
Conversion Rate: 1.5%
Average Order Value (AOV): $100
Gross Margin: 65%
With these numbers, your daily net revenue stands at $7,500 (5000 * 0.015 * 100)
However, if we factor in abandoned checkouts, which account for $10,000 in potential net revenue, you could potentially generate an additional $300,000 per month in net revenue and $195,000 per month in extra profit.
How can we activate those abandoned checkouts?
To effectively recover abandoned carts using SMS, it's essential to address the main reasons customers abandon their purchases. Let's explore each reason and the corresponding strategies to combat them:
Price-sensitivity: Customers may desire your products but hesitate due to budget constraints or shipping fees. Use SMS to offer personalized discount codes or shipping fee waivers to incentivize conversion. Highlight the limited-time nature of the offer to create a sense of urgency.
Delivery time: Some customers may require faster delivery than your standard shipping timeline. Include an SMS-triggered "Need this order faster?" button on the checkout page. Upon clicking, present customers with the option of free express shipping if their order meets a specific AOV threshold. Alternatively, suggest adding another item to their cart to qualify for the expedited shipping.
Perceived value: To persuade customers who are undecided due to a lack of perceived value, leverage SMS to share compelling content. Integrate product reviews, lifestyle videos, or user-generated content (UGC) into your checkout page. By showcasing positive experiences and the unique features of your products, you can reinforce the customer's confidence and enthusiasm for their potential purchase.
Setting up triggered SMS cart recovery workflows will likely lead to great success. A simple SMS workflow with 2 SMS's can do the trick for you. This is a simple one, the first SMS reminds the customer to complete their purchase and second one helps them with a discount coupon urging them to make the purchase.
Basics of Abandoned Cart SMS Template
Brand Name: You always need to introduce yourself, even if you feel it may be obvious what company is sending the message. Adding your brand’s name at the start (or at the end) of an SMS message is a good way to make sure your customer knows who they’re dealing with right off the bat.
Shopper’s Name: While including a name isn’t necessary, we’ve mentioned previously that personalizing marketing messages is likely to get a better end result than blasting generic advertising. Adding someone’s name into the text is the easiest way to personalize a message.
Discount Code: If applicable, sending out a small discount code with an abandoned cart text message is likely a good idea. You will definitely attract more attention if your customer can get a small discount.
CTA: Well, everyone who has been in marketing for some time knows – call-to-actions are necessary. SMS messages aren’t any different. Always remember to include one in your text message.
URL: Including a link to your eCommerce website is simply a good user experience. You want to reduce the time it takes to return to your website as much as possible, and there’s really no better way than a URL. If you can include the discount code in the link – do that as well!
If you're ready to explore additional opportunities to boost your store's profitability, let's talk! Our Shopify SMS app is designed to help you optimize your marketing efforts, increase customer engagement, and drive sustainable growth.