The Istobe eCommerce Analytics Blog

Last time we talked a bit about the reasons behind abandoned carts and realized that there aren’t many weapons available to combat most of its causes. Even potential solutions that look tantalizing (showing S&H and tax on product pages) will likely just push abandonment to an earlier pre-cart point in the process.

If Nothing Else, Read These Two Stats

All is not lost, however. It turns out that remarketing to shoppers who have left full carts behind really can make a difference. Check out these two stats, pulled from the Experian CheetahMail report:

Even the most basic [remarketing] emails (even those that simply link to a website home page) pull in over 31% higher transaction rates compared to bulk promotions — a number that senior management will find difficult to ignore.

Yowza. That fact alone should should make you want to drop everything and put a remarketing program together today. But maybe you’re still skeptical. After all, won’t a remarketing email with a discount offer simply train shoppers to abandon the cart in hopes of a better deal?

Not to worry (from the same report):

Emails sent to cart abandoners (those who have placed an item in their shopping cart but have not converted) with an incentivized offer only pull $0.09 more in revenue per email than those emails that do not contain an offer.

We don’t even have to include a discount offer in the remarketing email to reap its rewards. Not bad.

I’m Convinced. What Else Should I Know?

Before you get started, keep these tips in mind when sending your remarketing emails:

Create a sense of urgency. Subject lines mentioning that an item is about to be out of stock or that the basket is about to expire is likely to garner a better response rate than one simply reminding the user that items are left in his or her cart.

Time it to hit the sweet spot. When is the sweet spot? Conventional wisdom says one  to seven days after the user abandoned the cart. Start by sending it two days after abandonment and then test random groups using different timing to find optimal response rates.

Link directly to the cart. From the report:

The quicker a customer can access their own cart and view the actual products they were interested in, the higher the returns.

How Much Time Will It Take?

Implementing a remarketing program is one of those best practices that can yield great results without much investment. If you’re ready to dip your toes in be sure check out our next post. We’ll provide, in usable form, the world’s simplest php remarketing script that will get you a functioning remarketing program in a few minutes.

eMarketer has an interview up with Bill Nussey of Silverpop in which he warns against badgering customers with email marketing that is too frequent or irrelevant to their interests.  The phrase he used is to describe this more tailored, moderate approach to email marketing is “keeping it in the green zone”.

The phrase resonated with me — perhaps because the “green zone” is how we visually depict customers who are likely to respond favorably to given email content in our new product.  

Read The Email Marketing Green Zone »

Over the past two weeks, I’ve been watching the fallout from two important conferences taking place on the West Coast (where I would much rather be right now given the latest round of snow in Boston.)  The first annual Predicitive Analytics World ’09 was staged in San Francisco on Feb 18th and 19th and eTail West 2009 took place last week and drew in a host of e-Marketers from around the country. One common theme that I seem to be hearing from the blogs and articles I’ve read from both: make sure you’re using your customer data effectively and, most importantly, keep it simple.
Read Simplicity is Key for Marketing Analytics »

I often feel that email is the neglected step child of retail marketing. We’ve all seen the news articles and blog posts that tout sexier marketing trends like Twitter and mobile marketing. Many retailers have already jumped on the social media and company blog bandwagon and will spend months planning and implementing these changes on their website. Yet, I so often run into marketers that are willing to throw together a weekly sales email in an hour and blast the same message to their entire customer list.  Why? Well, my guess is they are underestimating the “response” they get from email. Catalogers are quick to argue that offline communications drive online purchases, but how is online communication driving offline sales?

Read Why Getting Email Marketing Right is so Important »

For a long while, it seems as though email marketers have followed the idea of nothing ventured, nothing lost when it comes to email marketing. There was simply no reason to get better at email marketing because it didn’t cost all that much more to send out 1000 more emails. So what did it matter if the clickthrough rate could be optimized? It was easier just to buy 1000 more names and blast them all. Extra names = increase. Right? Well, now that every retailer out there is sending more emails, it’s making the forest that much thicker - and the path to your product that much more difficult to navigate. Couple that with the fact that a poor economy is just about the time that acquisition seems too pricey and we have a perfect climate for belt-tightening via smarter use of technology. Behold, the age of product recommendations has come to email.

Read Retail Email Marketing Embraces Product Recommendations »

I read a great blog post yesterday on why aligning your SEO and targeted email strategy is important to reducing your cost of new customer acquisition. Julie Batten’s Using Search and E-mail to Acquire Customers post at Clickz has some great info in it. I pulled out the following quotes that I thought were particularly interesting:

Read Importance of Coordinating Search and Targeted Email »

Last week in Weather Marketing we talked about ways to use freely available temperature and precipitation data to make sure you’re not marketing parkas to your customers in Texas. The rub was that the National Oceanic and Atmospheric Administration dosn’t exactly make the data available in the friendliest of formats. 

We’ve put our data manipulation skills to work and reworked the data in a way that will make it easy to import into a database table or append to your customer file. The following files provide the average annual and seasonal temperature (in Fahrenheit) and precipitation (in inches) for each state and for the US as a whole. It also lists standard deviation for each value in case you want to go super-nerdy on your analysis.

Have at it in the format of your choice!

Comma separated value: temp_and_precip_by_state.csv

Excel 2007: temp_and_precip_by_state.xlsx

I have to admit that it’s been a while since I’ve written on this Istobe blog, but for good reason. My wife and I welcomed a little girl into the world (Vivian June) on December 28th and have been battling sleep deprivation and dirty diapers ever since (and yes, she’s definitely worth it).  The bad news is that I just haven’t had much time to read all of the news feeds and blog posts that I would have liked to over the course of the last few weeks. So, as I looked blurry eyed through my blog posts and news items this morning, I noticed a few articles that point out some important marketing trends for retailers in 2009:

Read Marketing Trends For Retailers in 2009 »

It is a wintry, slushy mess in Boston today. Rivers of ice cold water line every street and each passing car sprays pedestrians unfortunate enough to have to walk to work.

I am one of these pedestrians. Worse, as a Boston transplant, I am woefully ill-equipped to stay dry. At this moment my feet and legs are soaked and I have never been more willing to part with money for a good pair of boots.  Really, I’m ready to buy right now. It’s urgent.

Read Weather Marketing »

I talked last time about how variable pricing is a great way to maintain your margins on sale items and I gave three general steps on how to perform variable pricing with email marketing. The gist is that each of your customers has a different value for your products and the key is to figure out how to get them each to pay closer to what they are actually willing to pay. The main takeaway is that you should give different sale discounts to different segments of your customers based on their behavior patterns - and the patterns of other customers like them - concerning discounted items. Today, I’ll take a look at the main arguments that companies have when it concerns variable pricing.

Read Variable Pricing-Based Email Marketing: 25% Less Customers Can Make you 22% More Profit »