Page 40 - GS170102
P. 40

Education


                  One merchant's brilliant solution for


                           shopping cart abandonment




                                                               Shopping cart abandonment wasn't terribly hurting Bowab's
                                                               business, but it irked him. "Our sales tend to peak near any
                                                               gifting holiday: Christmas, New Year's, Valentine's Day,
                                                               Mother's and Father's Day, even the summer holidays,"
                                                               Bowab said. During those times, his cart abandonment rate
                                                               hovers around 48 percent, well below the average. "During
                                                               non-holiday periods, it creeps up to about 60 percent," he
                                                               noted.
                                                               An uncommon solution

                                                               Even though LobsterAnywhere's abandonment rate was
        By Chris O'Donnell                                     below Baymard's average finding, curiosity got the better
                                                               of Bowab. He wondered what he could do to get customers
        Instabill Corp.                                        who had left in the middle of the sale to return and finish
                                                               the checkout process. "You never let a customer off the
                 oe Bowab has been shipping live and frozen lob-  hook," he said.  "Customer acquisition isn't cheap. They
                 ster online from his website, LobsterAnywhere.com,   came to the website for a reason, so you want them to buy."
                 for nearly 17 years. He ships lobster and more
        J than 20 different seafood dinners overnight any-     Bowab wanted a strategy that would gently remind
        where in the continental United States. For folks across the   customers who  abandoned  checkout,  not a  strategy that
        country  who  long  for  Maine  lobster  and  traditional  New   might pester them. So he devised a solution: two email
        England seafood dishes, he's their man.                reminders, one in two hours, another in two days. When
                                                               a visitor abandons an order on  LobsterAnywhere.com, the
        As someone who has a master's degree in education from   automated  email  sent  two  hours  later  states,  "You've  left
        Harvard and is midway through his doctoral degree, online   something in your lobster trap!" Bowab noted his first email
        seafood delivery isn't how Bowab envisioned making his   results in a 54 percent open rate.
        living. But LobsterAnywhere is hugely successful. His
        chargebacks are less than one per year (every one of which   If the consumer hasn't responded, the individual receives a
        he resolves). Reviews websites are overwhelmingly positive.   second – and final – email reading, "Woo-hoo! You landed

        A common business challenge                            the big one!" If his second email draws no response, Bowab
                                                               leaves it alone. "I think three or more emails is too much,"
        In the month of December 2016,  LobsterAnywhere.com  he said. "People can get annoyed with too many e-mails. I
        drew tens of thousands of visitors. Business was very  try to make mine funny and off the cuff."
        good this holiday season. That's not to say Bowab doesn't
        have challenges. Like many ecommerce merchants, one  With the second e-mail, however, he'll offer a $15 coupon
        of his challenges is shopping cart abandonment – when a  for orders over $100 or more, just for coming back. "You can
        consumer begins the checkout process but abandons the  incentivize the customer with the second email," he said.
        purchase for any number of reasons.                    Since implementing his cart abandonment solution in late
                                                               September 2016, Bowab has brought back 10 percent of the
        Among the most common causes of shopping cart  48 percent of consumers who have left his checkout process.
        abandonment are:                                       He is hopeful that figure will grow.
            • Shipping costs were too expensive.               "I just felt that my [abandonment] rate was kind of high," he
            • The checkout process was arduous and complicated.  said. "I believe that when you have that customer come to
            • The checkout process lacked important details.   your website, you can't lose them."
            • The consumer felt the checkout site lacked proper
              security.                                        Chris O'Donnell is a Senior Copywriter for the Instabill Corp. in Portsmouth,
            • The consumer was forced to create an account.    N.H. Instabill is a full service provider of merchant accounts to e-com-
                                                               merce, MO/TO and POS businesses. A resident of coastal New England,
        According to the Baymard Institute, an independent web   O'Donnell is also a contributor to The Daily News (Newburyport, Mass.)
        usability research firm based in Copenhagen, the average   and Newburyport magazine.
        e-commerce checkout abandonment rate was around 75
        percent for 2016.
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