If you run an e-commerce business, it’s heartbreaking to review your store’s analytics and realize that a chunk of people came so close to buying–only to leave their online shopping cart without explanation.
Unlike in a physical store where you can counter any last-minute objections or provide reassurance someone is making the right decision, you’re stuck wondering what went wrong.
The worst thing you can do is apply the “if you love someone, let them go” approach to these shoppers: the probability that those who abandon a cart end up buying is ten times higher than for other website visitors.
It’s why you need to give them the final nudge they need to click the “Complete Order” button.
We’re firm believers that you can only improve what you can measure. We recommend you monitor your store’s average abandoned cart recovery rate, tracking the impact of different efforts to increase it over time.
This article provides you with some benchmarks on abandoned cart recovery rates and explains how to calculate your store’s rate.
Abandoned cart recovery rate refers to the number of people who abandon their carts and then return to purchase as a result of your abandoned cart emails or texts.
If you send a hundred texts to people who abandoned their carts and 20 then decide to complete their purchase, your recovery rate is 20%.
After that, you can figure out the value of this tactic by multiplying the number of customers you win back by your average order value (AOV) to get an idea of how much revenue its generating.
If the company in the above example had an AOV of $30, the following formula applies: (100 x .20) x $30= $600.
There are few comprehensive benchmarks for the average abandoned cart recovery rate of text messages. Still, evidence from various case studies puts it at between 25-33% According to a survey from MooSend, the recovery rate for cart abandonment emails is 10.7%.
Given that 98% open rates of text messages, it’s no surprise that this tactic can give your recovery rate a 133% lift.
Gecko board provides a handy guide to calculating your shopping cart abandonment rate. In Shopify, all you need to do is:
Within Google Analytics, you can view your checkout processes funnel in a view that looks like this. (Yieldify has a helpful guide to setting this up.)
Both sources tell you how many people are leaving your store, but it doesn’t tell you how effective your efforts are to bring them back.
Here are two ways to calculate your abandon cart email or SMS conversion rates.
While you may not know why customers abandoned their cart, approaching the situation with a benefit is a safe bet. You can also track the number of people who redeem these promo codes and compare them to the number of people who abandoned their carts from your view above.
If you don’t plan on using promo codes to encourage someone to finish checking out, we recommend using Google’s free UTM builder to track your recovery rate.
With UTM parameters, you can see the traffic your abandoned cart texts or emails drive to your site and how many people buy because of them. It allows you to add parameters to URLs you include in your abandoned cart marketing that is then shown in Google Analytics.
If the last sentence sounds like gibberish to you, we recommend reading this guide on how to track your SMS campaigns in Google Analytics.
Then, you can compare the number of purchases to the number of shoppers abandoning carts.
You can optimize your checkout process until you’re blue in the face, and people will still abandon their carts.
That’s not to say you shouldn’t focus on the UX and do everything you can to limit friction. But you’ll reach a ceiling at some point.
Taking the average abandonment rate of 75%, a store with 6,000 monthly visitors, a 4.31% conversion rate, and AOV of $20, will lose close to $21,688 in monthly revenue.
That’s when a strategy to recover abandoned carts comes into play. Done right, you can recover close to 33% of those shoppers. That’s a whopping $7,157 in extra revenue you can generate.
And it’s why your abandoned cart recovery rate matters.