Data Shows Improving Revenue is Easy When You Recover Abandoned Carts

Data Shows Improving Revenue is Easy When You Recover Abandoned Carts

online shopping cart

What if someone told you improving your revenue is as easy as sending a simple text to recover abandoned carts? That might sound too good to be true but the data speaks for itself: the right text can earn up to a 58% recovery rate when it comes to abandoned carts online. Imagine what your bottom line could look like. It takes a lot of energy and resources to get customers to put an item in their cart. Now, you could potentially retain up to two thirds of those who don’t complete the checkout process. 

Between June 2019 and July 2019 we gathered internal data from our clients who use a feature that sends abandoned cart text messages to people who didn’t complete their purchase on Shopify sites. Here are our findings. 

Key findings

  • Money talks: $156,915 was the most order revenue a single client recovered in the 30 day period we reviewed. This was with a recovery rate of 20%. 
  • Critical mass: One client completed 792 extra sales within 30 days. They started with 1,365 abandoned carts, making their retention rate after using this strategy 58%. That means almost two thirds of customers who walked away came back after receiving a text. 
  • Size doesn’t matter: We looked at companies that had over 1,000 sales a month and those with less than 100. Both sizes benefited from using this strategy to win back sales. 
  • Words have power: Not every client had success with this tool. Those who aren’t seeing results typically aren’t crafting their copy with the right message. They make three common text marketing mistakes. 

1. $156,915 recovered in 30 days

A 20% recovery rate isn’t insanely high compared to other examples we’ve seen of this tool in action, but with this average recovery rate, one client was able to capture $156,915 in revenue that was simply being lost because people were walking away from their carts. 

That’s a significant revenue boost that was secured just by programming an automatic texting campaign. 

How did they do it? By sending automatic texts encouraging customers to return to their cart to complete the sale. Statistics show people are addicted to their smartphones, so a text is almost guaranteed to be seen — instantly. Texts can include a link to each individual’s cart so that as much friction is removed from the process as possible for the end user. 

shopify abandoned cart recovery data

2. Nearly two thirds of lost sales recovered

One client’s success was so pronounced they saw 58% of their abandoned carts recovered. That means about two out of every three people who walked away from their carts returned after receiving a text reminding them to finish their purchase. 

What goes into a success like this? 

  • Timing: Send follow up texts soon after the cart has been abandoned. Don’t let days or weeks go by before customers are contacted. You should test different timings to zero in on the best timing for your customers.
  • Wording: Be clear and concise with a compelling call to action. 
  • Simplicity: Provide a link that takes customers directly to their personal abandoned cart. 

shopify abandoned cart recovery statistics

3. Works for stores of all sizes

Just to make sure there wasn’t something unique about ecommerce stores with high sales volumes, we also looked at clients of ours who have a much smaller monthly sales volume. We were able to determine that when they use the same strategies they see levels of success that are on par with any of our larger clients. 

Shopify abandoned cart recovery research

abandoned cart recovery facts

4. Avoid common mistakes

Not every client who used this tool saw success at the same magnitude. The average recovery rate is between 17% and 20% and can be used in addition to other revenue building strategies. Among those who are not maximizing the full potential of using texting to recover abandoned carts, here are some of the common mistakes we see:

  • Murky CTAs: Make sure customers know exactly how you want them to take action, and provide them with a simple, straightforward path for doing so. 
  • Inconsistent follow through: You can, and should, follow up with those who’ve abandoned a cart more than once if they don’t take action the first time. Keep trying to engage them by sending texts at different intervals. 
  • No testing: Every demographic is different so that’s why you need to test elements such as timing or copy to continually tweak your message and delivery. Don’t settle for the first round of results you get, keep trying to improve your numbers. 

 

 

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