“We’re getting revenue every day that we wouldn’t get otherwise.”
– Jeremy Low, Business Development Manager, Axtro Sports
Axtro Sports recovered nearly 10% of lost revenue from Abandoned Cart Emails.
RECOVERED NEARLY 10% OF LOST REVENUE FROM ABANDONED CART EMAILS
30% INCREASE IN AVERAGE ORDER VALUE FROM ABANDONED CART EMAIL
31% CLICK THROUGH CONVERSION RATE FOR ABANDONED CART EMAIL
When it came to marketing, Axtro Sports was looking for a solution that would unite all their marketing into one platform. The Singapore-based omnichannel retailer for sporting wearables (think Fitbit) and other consumer electronics for the active lifestyle had revenue and a marketing strategy behind it, but what they lacked was a system for benchmarking their success to see what works and what doesn’t. Not knowing this information was detrimental to their overall marketing strategy because it made the reallocation of their budget into successful channels next to impossible.
Axtro Sports turned to Springbot to help attribute revenue to their marketing channels and make wiser decisions about where they spend their marketing budget. In the first few months with Springbot, they found an unexpected pain point in their marketing: 94% of total add-to-carts on their site resulted in abandoned carts. This was a potential revenue loss of 45% of their total revenue.
With so many choices online, a large percentage of shoppers place items in their carts but then fail to complete the purchase. Until recently, Axtro Sports had no mechanism for bringing back shoppers who abandoned their carts.
Axtro Sports is far from alone in dealing with this issue. Forrester Research estimates that 87% of consumers abandon carts, resulting in $18 billion of lost revenue annually, and other industry research confirms that over 70% of all online shopping carts are abandoned. After viewing their abandoned cart reports in Springbot, it was clear that they needed to focus on recapturing the attention of customers who don’t complete their order — all 94% of them.
Based on these insights, Axtro Sports chose to kick-off Springbot’s cart abandonment solution as step one. To achieve this, Axtro Sports set up a two-message cart abandonment series: The first email is sent 3 hours after the cart is abandoned. If it receives no response, a second message is sent out three days later. The first email has an average order value that is 30% higher than the site’s overall average. The second abandoned cart email has a greater sense of urgency and features an incentive for returning to complete the purchase. While this email the revenue generated by the second email is 62% less revenue than the 3 hour email, it does have a 31% click through conversion rate – compared to the 3 hour email’s CTC of 25%. “We’re getting revenue every day that we wouldn’t get otherwise,” said Jeremy Low, Business Development Manager at Axtro Sports.
In just over nine months, Springbot’s abandoned cart emails helped Axtro Sports recover nearly 10% of their abandoned cart revenue.
They have an impressive list of automated triggered emails, with everything from a welcome series to birthday messages to a re-engagement campaign. But Axtro Sports isn’t stopping to admire their results. They’ve recently delved into the Springbot Customer Segmentation feature and plan to use it as a key component in their 2016 email marketing strategy.
“Segmentation allows us to target our customers more personally,” Low said. “Without a tool like Springbot, our only option would be to send out mass impersonalized emails to all of our customers at the same time with less than stellar results.” Jeremy says it’s a feature they’ve had access to but aren’t using it to its full potential yet.
Jeremy’s only regret in working with Springbot? “I only wish you’d had it sooner,” he said. “If automated abandoned cart emails are not part of your core marketing strategy, they should be.”