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Reducing Cart Abandonment

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Reducing Cart Abandonment: 4 Main reasons why customers leave your shopping cart and how a few tweaks can stop the leak #webclinic
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Page 1: Reducing Cart Abandonment

Reducing Cart Abandonment: 4 Main reasons why customers leave your shopping cart and how a few tweaks can stop the leak

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JOIN THE CONVERSATION ON TWITTER

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Who’s With Us

Presenter
Presentation Notes
Listrak is an email marketing solutions provider that works with online retailers to drive revenue growth, profitability and increase the lifetime value of customers by helping retailers acquire more new customers and selling more to existing customers. Founded in 1999, the company’s solution suite boasts an analytics platform that enhances campaign performance, shopping cart abandonment solutions that help recoup lost revenue (with the highest reachable rates in the industry), post purchase solutions to increase lifetime value, seamless integration across multiple platforms (led and implemented by a Listrak project team), as well as email, mobile, sweepstakes and more. Listrak also offers a full team of ecommerce email strategists dedicated to achieving success for the retailer. Listrak has more than a decade of email marketing experience and works with leading U.S. online retailers, including Deb Shops, Waterford, Ten Thousand Villages, Swell, Vintage Tub and La-Z-boy.
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TODAY’S PRESENTER

Dr. Flint McGlaughlin – Managing Director, MECLABS Flint McGlaughlin is the Managing Director of MECLABS Group. The organization has partnered with key market leaders including The New York Times, Microsoft Corporation, and Reuters Group. Dr. McGlaughlin also serves as the Director of Enterprise Research at the Transforming Business Institute, University of Cambridge (UK), as the Chairman of the Board of Governors for St. Stephen’s University, and as a Trustee for Westminster Theological Centre. Dr. McGlaughlin originally studied Philosophy and Theology at the University of London’s Specialist Jesuit College. Today, his primary research is focused on enterprise as transformative agent. His work has won multiple awards and has been quoted in more than 13,000 online and offline sources.

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An Experiment

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EXPERIMENT: BACKGROUND

Background: A company offering competitively priced, easily accessible storage space for residential and commercial customers Goal: To increase the number of visitors that complete a storage reservation through the website. Research Question: Which checkout page will result in the highest reservation rate? Test Design: A/B Variable Cluster Split Test

Experiment ID: TP1758 Record Location: MECLABS Research Library Research Partner: [Protected]

Research Notes:

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EXPERIMENT: VERSION A

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EXPERIMENT: VERSION B

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EXPERIMENT: SIDE BY SIDE

Version A Version B

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EXPERIMENT: RESULTS

Design Conversion Rate

Version A 17.68%

Version B 19.50%

Relative Difference 9.1%

9% Increase in Conversions The treatment page increased the rate of conversion by 9.1%

What you need to understand: While it might seem like a small increase, these simple changes at this specific step in the sales funnel resulted in a projected $3,000,000+ increase in revenue per year.

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CART OPTIMIZATION Q. Which of the following pages/processes did your organization work to optimize?

The shopping cart can be one of the most strategic aspects of a conversion process to optimize… However, it is ranked the lowest by marketers on what they spend their time optimizing.

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Key Principles

1. Shopping carts are not just a utility. They are the strategic means by which you (the marketer) maintain the cognitive momentum generated in the conversion process.

REDUCING CART ABANDONMENT

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WHAT DO YOU OPTIMIZE FOR IN A SHOPPING CART?

Design?

51,345 PPC Impressions

137 Completion

11,633 Category Page

3, 476 Product Page

398 Cart Page #1

223 Cart Page #2

Metrics?

-$1,756 -$4,785 -$7,393 -$19,342 -$24,678

Revenue?

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COGNITIVE MOMENTUM

Product Page Cart Page #1 Thank-you Page Channel Category Page Cart Page #2

High

Low Cogn

itive

Mom

entu

m

• The overall objective of a shopping cart is to maintain as much forward momentum as possible from the “product page” to the “thank you” page.

• Cart abandonment occurs when cognitive momentum is obstructed.

Goal: To obtain a conversion

commitment

Goal: To engage visitor and lead them to the most relevant value

Goal: To maintain the cognitive momentum generated by the product page

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Today, we are going to walk through the 4 main reasons why customers lose momentum

in the checkout process and abandon

TODAY’S FOCUS

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Reason #1 Unwarranted Confusion

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Key Principles

1. Confusion is the chief impediment to conversion. In the shopping cart, confusion stems from disorientation.

2. For every transition in the conversion process, the visitor experiences a moment of orientation. In this moment, they are seeking to make sense on two key levels:

• Where am I?

• What can I do here?

3. The marketer has approximately 7 seconds to answer these questions at each junction of the shopping cart process.

UNWARRANTED CONFUSION

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EXPERIMENT: BACKGROUND

Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: TP1621

Background: The research partner is a one-stop vacation planning solution that allows users to book vacation rentals, car rentals, and activities. Goal: To increase final vacation bookings Primary Research Question: Which page will yield the highest conversion rate from billing information to confirmation? Approach: A/B variable cluster split test

Research Notes:

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EXPERIMENT: CONTROL Control Cart

• The original cart was broken into two (unclear) steps

• The horizontal flow

as well as the blue shading made it difficult for visitors to get a sense for the sequence of the cart.

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EXPERIMENT: TREATMENT

• A simple “step indicator” was

added to clearly indicate where a visitor is located in the process

• The treatment also sequenced the two steps vertically.

Treatment Cart

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EXPERIMENT: SIDE BY SIDE Control Cart Treatment Cart

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EXPERIMENT: RESULTS

Design Conversion Rate

Control 27.4%

Treatment 37.2%

Relative Difference 36.1%

36% Increase in Total Cart Conversions The treatment cart generated 36.1% more conversions than the control

What you need to understand: By clarifying the sequence in the checkout process, the treatment generated 36.1% more total conversions than the control.

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NOT THIS, BUT THIS Not This

9% IN CONVERSIONS

But This

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NOT THIS, BUT THIS

Not This

19% IN CONVERSIONS

But This

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Impediment #2 Unexpressed Value

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EXPERIMENT: BACKGROUND

Background: A newspaper selling subscriptions for home delivery. Goal: To increase home delivery subscription rate. Research Question: Which treatment will generate the highest home delivery subscription rate? Test Design: A/B variable cluster test

Experiment ID: TP1789 Record Location: MECLABS Research Library Research Partner: (Protected)

Research Notes:

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• The control was the original home delivery checkout page. It was already doing many things right.

• However, after reflection, we hypothesized that perhaps some slight tweaks in the design could emphasize the value proposition.

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EXPERIMENT: CONTROL Control Cart

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EXPERIMENT: TREATMENT

• Adjusted copy and imagery to emphasize the value proposition of the offer.

• Added copy after each option to emphasize the savings.

• Call to action is clearer and implies value.

• Credibility indicators and satisfaction guarantees are added.

Treatment Cart

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EXPERIMENT: SIDE-BY-SIDE Treatment Cart Control Cart

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EXPERIMENT: RESULTS

Design Conversion Rate

Control 6.4%

Treatment 12.9%

Relative Difference 101.4%

101% Increase in Total Cart Conversions The treatment generated 101% more subscriptions than the control

What you need to understand: By making small tweaks to further emphasize the offer to the visitor, the treatment generated a 101% increase in conversion.

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Key Principles

1. Visitor motivations typically peak just prior to the checkout process. At the same time, the cost (material and mental) experienced by the visitor is usually the greatest in the shopping cart.

2. One of the main reasons for cart abandonment is that we assume the motivation generated by the offer page will overcome the resistance in the checkout process.

3. However, marketers must ensure that value is being expressed continuously for every step/action you require of the visitor.

UNEXPRESSED VALUE

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NOT THIS, BUT THIS Not This But This

87% IN CONVERSIONS

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NOT THIS, BUT THIS Not This But This

10% IN CONVERSIONS

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Impediment #3 Unaddressed Anxiety

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EXPERIMENT: BACKGROUND

Background: A national computer hardware and multimedia retailer with a significant online and offline presence Goal: To increase total cart conversions and revenue per cart. Research Question: Which treatment will generate the highest conversion rate and revenue per cart? Test Design: A/B variable cluster test

Experiment ID: TP1070 Record Location: MECLABS Research Library Research Partner: [Protected]

Research Notes:

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EXPERIMENT: CONTROL Control Cart

• A closer look at the control cart page reveals that all supporting content is focused on making an upsell

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EXPERIMENT: TREATMENT Treatment Cart

• The treatment, however, changes focus to reduce potential anxiety

• Testimonial, customer support and live chat in the supporting column

• Another testimonial and credibility indicators below the call to action area

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EXPERIMENT: SIDE-BY-SIDE

Control Cart Treatment Cart

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EXPERIMENT: RESULTS

Design Revenue/Cart

Control $49.14

Treatment $54.84

Relative Difference 11.6%

11.6% Increase in Revenue Per Conversion The treatment generated 3.69% more conversions and 11.6% more revenue per cart

What you need to understand: By addressing anticipated anxiety at critical point of decision point, the treatment generated 3.69% more sales in addition to 11.6% more revenue per cart, resulting in a projected $53,000,000+ annual increase in revenue.

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Key Principles

1. If we think about mitigating anxiety in rational terms, we will likely to fail in our efforts. Though anxiety often is stimulated by a legitimate concern, its degree/impact is often disproportionate to the measure of risk.

2. Anxiety is also localized in the checkout process. It is closely associated with the geography of the page.

3. To properly address anxiety, the marketer must anticipate specific concerns related to the product, and preemptively address them with geographical proximity to the core source of concern.

UNADDRESSED ANXIETY

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NOT THIS, BUT THIS

But This Not This

12% IN CONVERSIONS

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NOT THIS, BUT THIS

Not This But This

12% IN TOTAL REVENUE

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Impediment #4 Undirected Choices

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EXPERIMENT: BACKGROUND

Background: B2C company offering package vacations to global consumer audience. Goal: To increase cart completions Research Question: Which cart page will generate the highest completion rate? Test Design: A/B split test (variable cluster)

Experiment ID: TP1294 Record Location: MECLABS Research Library Research Partner: [Protected]

Research Notes:

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• The original cart was simple, but it included three equally weighted options from which the visitor had to select.

• This made the checkout process more cumbersome than was necessary

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EXPERIMENT: CONTROL Control Cart

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EXPERIMENT: TREATMENT

• The marketers deemphasized and integrated the additional options into the product details.

• And they visually focused the visitor on one main call too action here.

Treatment Cart

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EXPERIMENT: RESULTS

Design Conversion Rate

Control 12.94%

Treatment 17.66%

Relative Difference 36.5%

37% Increase in Total Cart Conversions The treatment path generated 36.5% more cart completions

What you need to understand: By simplifying and sequencing the options to choose from, the treatment shopping cart generated 36.5% more cart completions.

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Key Principles

1. Giving the customer more choices does not always produce more conversions. In fact, one of the greatest impediments to conversion is multiple options that are equally weighted.

2. When possible, the shopping cart should NOT lead a prospect to a set of potential options, but rather to “the one” option. Beware of unsupervised thinking.

UNDIRECTED CHOICES

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NOT THIS, BUT THIS

But This 64% IN CONVERSIONS

Not This

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NOT THIS, BUT THIS

Not This

But This

78% IN CONVERSIONS

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SUMMARY

Key Principles

• Cart abandonment occurs when cognitive momentum is obstructed.

• The primary 4 reasons customers lose momentum in the checkout process are:

1. Unwarranted Confusion

2. Unexpressed Value

3. Unaddressed Anxiety

4. Undirected Choices

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PRACTICAL CHECKLIST

Use this checklist to mitigate abandonment in your shopping cart process:

Is orientation provided at each junction of the shopping cart process?

Is value being expressed continuously for every step/action you require?

Are there any unaddressed concerns about the product(s), or aspects of the checkout process?

Are concerns addressed in close geographical proximity to the core source?

Does every step present a single, clear path towards completion?

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Live Optimization

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Landing Page Optimization

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Live Optimization

Steps to current page: 1. Store front 2. Order Reports Consumers looking for data on vehicles

Page URL: http://bit.ly/13UhK09

Target audience:

Carfax

Presenter
Presentation Notes
Submitted by: Philip Additional Comments: N/A
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Live Optimization

Steps to current page: 1. Store front 2. Products page 3. Cart Consumers that need wireless fencing for pets

Page URL: http://bit.ly/19lwpHr

Target audience:

Havahart

Presenter
Presentation Notes
Submitted by: Megan Additional Comments: N/A
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Live Optimization

Steps to current page: 1. Store front 2. Products page 3. Select Plan 4. Cart

Page URL: http://bit.ly/192dI9g

Target audience: Businesses in need of IT monitoring services

Opsview

Presenter
Presentation Notes
Submitted by: Brian Additional Comments: N/A
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