Shopping cart abandonment 2015 (SCA)

1

R E S E A R C H S T U D Y

2015 Shopping Cart Abandonment Research Study Beginning in 2011, Listrak has conducted an annual shopping cart abandonment (SCA) study on the

retailers in the current Internet Retailer Top 500 Guide¹ and Second 500 Guide². For two years previous

to the first study we looked at just the retailers in the Internet Retailer Top 500 Guide. Looking at the

studies throughout the years, there has been a steady upward trend in several areas: the number of

retailers using SCA emails; the number of SCA emails sent per retailer; the number of retailers reaching

back to abandoners sooner; and the withholding of discounts in first SCA email.

While each year we found that more and more top retailers were adopting SCA programs and using

them more effectively, each year we still found a surprisingly significant number of top retailers not

taking advantage of this powerful retargeting opportunity, and of those using SCA, many who were not

optimizing results with proven best practices.

Similarly, this year’s study presents the findings for the shopping cart abandonment practices of the retailers

in the 2015 Internet Retailer Top 500 and Second 500 Guides, and as in previous studies, we note the

continuation of the trends above, as well as some notable shifts, and point out areas of missed opportunity.

This year we also share data based on the campaigns of hundreds of Listrak retail clients that quantifies

the effectiveness of SCA campaigns, and therefore the extent of the missed opportunities of many of

leading retailers. We then go a step further by studying top performing shopping cart abandonment

campaigns in order to identify best practices.

SHOPPING CART ABANDONMENT CAMPAIGN USAGE

While 2015 once again saw an uptick in the number of top retailers who use shopping cart abandonment

campaigns to retarget shoppers, it appears that use is approaching a plateau.

In the 2011 study, we reported that 14.6% of the Top 1000 retailers sent at least one SCA message: 18.7%

of the Top 500, a 42% increase vs. 2010; and 10.7% of the Second 500 (not studied in 2010).

Then in 2012, our study revealed that 30.1% more of the Top 1000 retailers adopted shopping cart recovery

tactics vs. 2011, with 19% sending at least one SCA email. The Top 500 retailers, at 19.4%, had seen a 4.8%

increase, and the Second 500, at 18.8%, had seen a significant 75.7% increase.

In 2013, the trend continued with 24.5% of Top 1000 retailers sending at least one SCA message, an

increase of 29% vs. 2012. The Top 500, at 23.5%, increased 21% and the Second 500, at 25.5%, had

increased 35.6%.

R E S E A R C H S T U D Y 2

Last year’s study revealed that, at 33.5%, 36.7% more of the Top 1000 retailers were sending at least one

SCA message vs. 2013 - at 34.3%, 45.9% more of the Top 500 retailers and, at 32.7%, 28.2% more of the

Second 500.

And while this year’s research shows that the trend continued in 2015, as the graph below shows, the

increases are notably less dramatic. At 35.2%, 5.1% more of the Top 1000 retailers are sending at least one

SCA message vs. 2014. At 35%, the increase is just 2% for the Top 500 retailers, and at 35.4%, 8.3% more

of the Second 500.

Clearly, not only

has the number of

Top 1000 retailers

employing shopping cart

abandonment retargeting

tactics begun to plateau,

but the divide between

the usage of the Top 500

and Second 500 has

narrowed, as well. With only little more than one out of every three Top 1000 retailers sending at least one SCA message, this is a notable and surprising finding.

2015 increase over 2014

Top 500 Retailers

35%

2% 8.3%5.1%

Top 1000 Retailers

35.2%

Second 500 Retailers

35.4%

2015 RESULTS: Top retailers sending at least one shopping cart remarketing message

40%

35%

30%

25%

20%

15%

10%

5%

0%

2011 2012 2013 2014 2015

Top 500 Retailers Second 500 Retailers Top 1000 Retailers

TOP RETAILERS WHO SEND AT LEAST ONE SCA EMAIL


NUMBER OF SHOPPING CART ABANDONMENT MESSAGES

Along with the upward trend in the retailers in

the Internet Retailer Top 500 and Second 500

Guides sending at least one SCA message, we

have historically likewise seen an increasing

trend in the number of SCA messages they are

sending per campaign.

In 2011, we reported that an “astounding” 77.5%

of all shopping cart abandonment campaigns

received from the Top 1000 retailers featured

only one email – 80% from the Top 500 and 75%

from the Second 500. That year 15.8% of the Top 1000 – 16.7% of the Top 500 and 15% of the Second 500

– sent two emails, and just 6.7% of the Top 1000 sent a third message – 3.3% of the Top 500 and 10% of

the Second 500.

In 2012, our study showed that fewer retailers were only sending a single SCA message – 62.4% of the Top

1000, down 19.5% from 2011 - and the gap narrowed between the Top 500 and Second 500, with 62.5%

and 62.3%, respectively, sending just one message. That year, the number of Top 1000 retailers sending

two SCA messages increased 7.6% to 17%. Interestingly, the Top 500 sending two remained at 16.7%, but

the Second 500 increased to 17.3%. Most dramatically, the number of Top 1000 retailers sending three

SCA messages jumped 207% to 20.6% - 20.8% of the Top 500 and 20.4% of the Second 500.

In our 2013 study, we found that even fewer Top 1000 retailers were opting for a single SCA message –

44.9% vs. 62.4% in 2012. The number of Top 500 retailers sending just one email was down 18% to 51.3%

and the Second 500 was down 38% to 38.6%. Top 1000 retailers sending two SCA messages increased to

22% - 20.5% of the Top 500 and 23.6% of the Second 500. Likewise, the number sending three messages

continued to grow – 29.3% of the Top 1000, 25.6% of the Top 500 (a 23% increase) and 33.1% of the

Second 500 (a significant 62% jump). That year we also found that 3.6% of Top 1000 retailers were now

sending four or more messages – 2.6% of the Top 500 and 4.7% of the Second 500. In fact, that year we

reported that we’d actually seen retailers sending as many as 11 SCA messages.

Last year, the number of Top 1000 retailers sending only a single message decreased only slightly to

42.9%. The number of Top 500 retailers decreased to 46.8%, however the number of Second 500 actually

increased to 39.1% from 2013’s 38.6%. Interestingly, 22.4% of Top 1000 retailers sent two SCA messages

– up very slightly from 20% last year – but while the Top 500 increased 31.2% to 26.9%, Second 500

retailers sending two messages decreased from 23.7% to 18%. It’s worth noting that overall, the number

of Top 1000 retailers sending three SCA messages actually decreased in 2014 to 27.3% from 29.3%, but

interestingly, while the Top 500 decreased 24.6% to 19.3%, the Second 500 increased 6.9% to 35.4%.

And in 2014, while the number of top retailers sending four or more messages was still very minimal, it

increased significantly. At 7.2%, the number of Top 1000 retailers doubled vs. 2013 – with Top 500 retailers

increasing 169.2% to 7% and Second 500 increasing 59.6% to 7.5%.

We have historically seen an increasing trend in the number of SCA messages retailers are sending per campaign.


In 2015, the greatest number of Top 1000 retailers are still only sending only one message, but the gap is

narrowing. This year, we found that 36.2% of Top 1000 retailers are sending a single SCA message, a 15.6%

decrease vs. 2014. At 35.4% Top 500 retailers continued to decrease (24.3%), and the Second 500 at

36.9% began once again decreasing (5.6%). 25.9% of Top 1000 retailers are sending two SCA messages,

up from last year’s 22.4%, this time with both the Top 500 and Second 500 increasing to 33.1% (up 23%)

and 18.8% (up 4.4%) , respectively. This year, the number of Top 1000 retailers sending three messages

began climbing again, reaching 28.8% (up 5.4%), with the Top 500 at 24.6% (up 27.4%), but at 33%, the

number in the Second 500 actually dipped 6.8%. Overall, the number of Top 1000 retailers sending

four or more SCA messages increased this year to 9.5% (up 31.9%). While Top 500 retailers were down

slightly to 6.9% (1.4%), the Second 500 rose to an impressive 11.9%, up 21.1%. This year we tracked retailers

sending up to eight SCA messages:

35.20% - 1 Message

22.50% - 2 Messages

13.40% - 3 Messages4 Messages - 3.30%5 Messages - 1.00%6 Messages - 0.70%7 Messages - 0.40%8 Messages - 0.30%

NUMBER OF SCA EMAILS SENT BY TOP 1000 RETAILERS IN 2015

0%10%20%30%40%50%60%70%80%90%

Top 1000

Top 500

Second

500

Top 1000

Top 500

Second

500

Top 1000

Top 500

Second

500

Top 1000

Top 500

Second

500

2011 2012 2013 2014 2015

NUMBER OF SCA EMAILS 2011-2015

1 Message 2 Messages 3 Messages 4+ Messages


SCA CAMPAIGN EMAIL CADENCE

The First Email

Historically we have seen that each year more

top retailers deploy the first shopping cart

abandonment email within the first 24 hours post

abandonment, and that more of the Second 500

retailers consistently do so than the Top 500.

Interestingly, this year, the trend continued with

more Top 500 retailers sending the first message

within the first day, however, for the first time

since 2011, fewer of the Second 500 sent within

24 hours versus 2014. It will be interesting to see

if this decline continues.

For the first time since 2011, fewer of the Second 500 sent the first SCA email within 24 hours.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2011 2012 2013 2014 2015

Top 500 Second 500

FIRST MESSAGE SENT WITHIN 24 HOURS OF ABANDONMENT


The Second SCA Email

Over the past several years, while we have seen top retailers sending the second SCA message up to five

days or more after the first, the most popular cadence has been within 48 hours, with the most Second

500 retailers doing so every year since 2012. This year, however, there was a decline in second SCA emails

being sent within two days of the first by both groups. Top 500 retailers sending within 24 hours was

down 38.5%, and those sending two days after the initial SCA email was down 7%. 20.2% fewer of Second

500 retailers sent within the first 24 hours this year, and those sending two days after the first SCA email

was down 65%.

In fact, there was much fluctuation for both groups in the timing of second messages this year:

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015

Top 500 Second 500

RETAILERS SENDING THE SECOND SCA EMAIL WITHIN 48 HOURS OF THE FIRST

% CHANGE IN TIMING OF 2015 SECOND SCA EMAILS VS. 2014

-100%

0%

100%

200%

300%

400%

500%

600%

700%

1 day 2 days 3 days 4 days

Top 500 Second 500


The Third SCA Email

The timing of the third SCA email for both the

Top 500 and Second 500 retailers, as shown

below, has fluctuated from year to year. The

only thing that has remained constant is that the

fewest number of Top 1000 retailers sends the

third message within one day of the second and

that most send the third message more than 3

days later.

The timing of the third SCA email for both the Top 500 and Second 500 retailers has fluctuated from year to year.

0%

10%

20%

30%

40%

50%

60%

70%

80%

Top 5002011

Top 5002012

Top 5002013

Top 5002014

Top 5002015

Second500 2011

Second500 2012

Second500 2013

Second500 2014

Second500 2015

1 day 2 days 3 days more than 3 days+

TIMING OF THE THIRD SCA MESSAGE

Use of Discounts

Offering a discount, free shipping or other

incentive in order to get a cart abandoner to

complete an order is a successful strategy,

however, it compromises the profitability of the

sale. Sometimes, all an abandoner needs is a

reminder that something was left in a cart, and

research shows that retailers in both groups,

for the most part, have come to realize this and

have begun to wait until later in the SCA email

series to introduce an offer.

Sometimes, all an abandoner needs is a reminder that something was left in a cart, and retailers have come to reailize this.


With the exception of this year, when we saw a small uptick in the number Top 500 retailers offering a

discount in the first SCA email (20% vs. last year’s 18.1%), every year since 2011 we have seen both the

number of Top 500 and Second 500 who feature a discount in the first SCA email steadily declining. And

while since 2011 significantly more Second 500 retailers have waited to feature discounts in the third versus

second SCA email, it was not until 2013 that Top 500 retailers began waiting until the third message.

0%10%20%30%40%50%60%70%80%90%

Top 5002011

Top 5002012

Top 5002013

Top 5002014

Top 5002015

Second500 2011

Second500 2012

Second500 2013

Second500 2014

Second500 2015

Message 1 Message 2 Message 3

OFFERS/DISCOUNTS IN SCA EMAILS

Looking at this year specifically, the trend

in retailers waiting longer to offer discounts

continues through the fourth email, with only

17.3% of top retailers offering an incentive in

the first email, and that number consistently

growing through the fourth email, where more

than two thirds (75.8%) of the Top 1000 retailers

feature offers.

The trend in retailers waiting longer to offer discounts continues through the fourth email.

0%

10%

20%

30%

40%

50%

60%

70%

80%

Email 1 Email 2 Email 3 Email 4

2015 PERCENTAGE OF TOP 1000 RETAILERS OFFERING DISCOUNTS IN SCA EMAILS


Personalization

Personalization in email in its infancy simply

meant using a subscriber’s name in the subject

line and/or body of the email, and it’s a practice

that is still in use.

In 2011, we found that 27.4% of the Top 1000

retailers (26.6% of the Top 500 and 28.8% of

the Second 500) were personalizing the first

SCA message with the subscriber’s name.

Jump to 2015 and we found that just slightly

fewer – 23.8% - of the top 1000 retailers are still

using personalization by name in the first SCA.

Interestingly, this year, only 19.4% of Top 500 retailers are doing it, but 28.3% of Second 500 retailers –

just slightly fewer than in 2011. In this year’s study we also noted that most retailers - 94.1% - who opt to

personalize by name in the first email continue to do so through the second and third emails.

In several, but not all, of our studies, we have taken a look at the use of product recommendations to

personalize SCA emails.

In 2011, we reported that 38.7% of retailers sending at least one SCA message included an image of the

abandoned product in the email. Then in 2013, we took a look at the use of product recommendations

by top retailers who send at least one SCA message both online and in email. That year we found

that while 90% and 84% of Top 500 and Second 500 retailers, respectively, were featuring product

recommendations onsite, only 12% and 4%, respectively, were including them in SCA emails.

In this year’s study we found that 24% of Top 500 retailers who send at least one SCA message include

personalized product recommendations in at least one SCA message – up 8.1% from 2014. And while

only fewer than half of that – 11.4% - of Second 500 retailers do the same, it is a 51.5% increase vs. 2014.

Usage of product recommendations is nearly identical for SCA messages one and two, and only drops

slightly for SCA messages three and four:

94.1% of retailers who personalize by name in the first email continue to do so through the second and third emails.

0%

5%

10%

15%

20%

25%

Email 1 Email 2 Email 3 Email 4

TOP 1000 RETAILERS USING PRODUCT RECOMMENDATIONS IN SCA EMAILS


SCA PERFORMANCE: WHY SCA CAMPAIGNS ARE SO IMPORTANT

So why is the fact that in 2015 only slightly

more than a third of the Top 1000 retailers,

as rated by Internet Retailer, send at least

one shopping cart abandonment retargeting

message shocking to us? Because at Listrak,

we have hundreds of retail clients using the

solution with results that prove that top

retailers are leaving millions of dollars on the

table, so to speak, by failing to use this

well-oiled, time-tested strategy.

We looked at the SCA conversation metrics of 550 retailers across an array of verticals for a full year (July

2014-July 2015). We found that the average SCA conversation open rate is 24.3%, the average click to

visit rate is 26.9%, and the average conversion rate is 19.7%, all significantly outperforming the respective

metrics of the marketing messages of our top performing retailers who also have SCA campaigns:

It is worth noting, that while the average SCA conversation conversion rate is 19.7%, the largest number

of retailers – 34.4% - falls into the 20-30% average conversion rate range.

Listrak clients’ SCA results prove that Top 500 and Second 500 retailers are leaving millions of dollars on the table.

0%

5%

10%

15%

20%

25%

30%

Open Rate Click to Visit Rate Conversion Rate

SCA Conversion Marketing Message

LISTRAK SCA CAMPAIGN METRICS


We also took a look at the SCA conversation rate of retailers by vertical. Although retailers we researched

represent a wide array of different verticals, below are the rates for the verticals with the largest numbers

of retailers:

0%

5%

10%

15%

20%

25%

Apparel/Accessories

Food/Drug

Health/Beauty

Housewares/Home

Specialty/Non-Apparel

30%

35%

LISTRAK SCA CONVERSATION CONVERSION RATE BY VERTICAL

TOP 50 PERFORMING LISTRAK SCA CAMPAIGNS – JULY 2014 – JULY 2015

But averages are just that, and as we reported

in our Modal Acquisition Research Study, at

Listrak we advise our clients to strive for the

metrics of top performing campaigns, rather

than seeking to simply be average or slightly

better. To that end, we took a close look at the

details of the 50 highest performing shopping

cart abandonment programs of the 550 we

studied, based on SCA conversation conversion

rate. The highest conversation rate in the group

is 55.06%, and the average of the 50 is 41.3%.

Below is a close look at top performing SCA campaign details:

Number of Messages – More is More

56% of Listrak’s top performing SCA campaigns have three messages. The next most popular number

of messages is four at 32%, while only 8% have two messages and 4% a single SCA email. And while

four is the maximum number of messages being sent by the 50 top performing retailers, our work

with hundreds of clients shows that if the last SCA message is converting at a double digit rate, it is

beneficial to add another message to the campaign.

We advise clients to strive for the metrics of top performing campaigns, rather than seeking to simply meet averages.


Timing of the First SCA Message

The timing of the first SCA messages ranges widely among Listrak’s top performing SCA programs,

from just one minute post abandonment to eight hours, with the average being 166 minutes (2 hours,

46 mins). The most frequently used timing for top performing campaigns is three hours, with 74% of

retailers with top performing SCA campaigns using a 180 minute wait step.

Timing of the Second SCA Message

Of the 96% of Listrak’s top performing retailers sending a second SCA email, the most popular cadence

is two days after the first. Interestingly, the next most popular time is just one day after the message

at 20.8% and then a jump to five days at 6.3%. None of the top performing retailers sends the second

message either three or four days following the first.

2%

1 min 15 min 30 min 60 min 120 min 180 min 240 min 480 min

8%

74%

4%2% 4% 4%2%

TIMING OF FIRST SCA MESSAGE

3 days1 day 2 days 4 days 5 days

20.83%

72.91%

0% 0% 6.25%

TIMING OF SECOND SCA MESSAGE


Timing of the Third SCA Message

88% of Listrak’s retailers with top performing SCA programs send a third SCA message, and send it

anywhere from one day to two weeks after the second. The most popular wait period between the

second and third messages by far, however, is five days. None of the retailers sends six days after the

second message or any time between seven and 14 days.

Timing of the Fourth SCA Message

32% of top performing retailers send a fourth SCA message, and while the most popular timing is four

days after the third, the timing of this message is the most inconsistent of all in the series.

1 day 2 days 3 days 4 days 5 days 7 days 14 days

4.54%

13.63%9.09%

2.27%

59.09%

6.81% 4.54%

TIMING OF THIRD SCA MESSAGE

18.75% 18.75% 18.75%

1 day 2 days 3 days 5 days 7 days 14 days

6.25%

25%

12.50%

TIMING OF FOURTH SCA MESSAGE


DISCOUNTING

As we noted about retailers in general, while

offering an incentive to complete the purchase

on an abandoned cart is a fairly common

practice, retailers realize that sometimes

a simple reminder is all that is needed and

therefore opt not to unnecessarily sacrifice

margin in the first SCA message. In fact, 90%

of Listrak’s retailers with top performing SCA

campaigns do not include an offer in the first

message.

18% of the retailers studied do not offer an incentive until the last email in the series and 20% do not

offer an incentive at all. 14% withhold an offer in the first email and then feature the same incentive in

all subsequent SCA messages, and 22% implement a discount ladder strategy, whereby incentives build

with each message in the series.

Incentives

Of the one in 10 top performing Listrak retailers offering an incentive in the first SCA email, an equal

number – 4% each – offer 10% off and free shipping – and 2% offer 5% off a purchase.

In the second SCA email, 39.6% of retailers are still withholding an incentive, and of those offering an

incentive, the lowest – 5% off – is the most used.

90% of Listrak retailers with top performing SCA campaigns do not include an offer in the first message.

39.58%

20.83%

6.25% 6.25%2.08% 2.08%

12.50%8.33%

2.08%

none 5% o� 10% o� 15% o� 20% o� 5$ o� free gift freeshipping

free giftand freeshipping

INCENTIVES IN SECOND SCA MESSAGE


The third SCA messages of Listrak retailers with top performing SCA campaigns include an array of

incentives, with 10% off clearly being the most used.

Of the 32% of our retail clients with top performing SCA campaigns who send a fourth SCA message,

one quarter still use a 10% off incentive, while an equal number offer 5% off.

0% 5% 10% 15% 20% 25% 30% 35%

15% + free shipping10% + free shipping

$5 o� shippingfree gift and free shipping

free shippingfree gift

$10 o�20% o�15% o�12% o�10% o�7% o�5% o�

none

INCENTIVES IN THIRD SCA MESSAGE

0% 5% 10% 15% 20% 25% 30%

20% + free shipping

free shipping

$10 o�

20% o�

10% o�

7% o�

5% o�

INCENTIVES IN FOURTH SCA MESSAGE


DESIGN OF TOP PERFORMING SCA MESSAGES

The call-to-action is key in all emails, and is especially important in shopping cart retargeting. No

matter if it’s the first or fourth SCA message, the retailer’s fundamental purpose in sending the email is

to make it easy for the cart abandoner to return to the site and complete the sale.

With that in mind, it is not surprising that only 14% of our retailers with top performing SCA

campaigns feature only a single call-to-action button in their SCA emails. While 24% feature two CTA

buttons, the greatest number – 62% - feature three calls-to-action, most often two buttons and a link

in the email copy.

The most-used CTA is the simple but urgent “Checkout Now” button, which is used by 78% of the

retailers, and the most used combination is two checkout now buttons and a link in the copy, which is

the strategy used in 54% of the SCA emails.

62% of Listrak retailers with top performing SCA campaigns use the same creative for each message in

the series, only changing the copy and/or offer from email to email. 12% use the same basic layout but

simply change the image in each email.

SCA Email Design Best Practices

Listrak’s Professional Services team meets regularly to evaluate the success of our clients’ solutions and

to share third party research on best practices. Below are their basic guidelines for working with clients

on SCA email design and messaging:

Do research - Look into the reasons why customers abandon carts for a particular retailer and address

those reasons with message content.

Don’t patronize - There is no need to state the obvious -- nearly all customers know they “forgot

something” or “left something behind”. Instead, give abandoners reasons to come back and buy.

Be clear and succinct - Tie the customer to their actions - “Thank you for visiting us. Come back, finish

checking out, and save 10%.”

Pay attention to subject line - Make it a maximum of 40 characters, keeping the important words in the

first 35 characters.

Leverage preheaders - Use preheaders to note an everyday promotion, if applicable (free shipping, free

returns, price guarantee, etc.), and reiterate the urgency of the subject line.

Be clear, yet creative with calls-to-action - Consider being creative with the verbiage, but be clear with

what you want the user to do.

Properly place incentives - If a code is dynamic or uses a personalization tag, it should live outside of

the hero itself in a separate, html-text section.


METHODOLOGY

Each year (since 2011) Listrak visits websites on Internet Retailer’s Top 500¹ and Second 500² lists. If

an organization has more than one brand, only one site is shopped. Sites that cannot be shopped are

excluded from the data.

The same tactics are employed on each site. If a site has a modal lightbox, we subscribe via that

method. If not, we subscribe using the form or link provided in the header or footer. We create accounts

where necessary.

We then add an item to the shopping cart and begin, but do not complete, the checkout process. We

add the following information on the form: first and last name, email address, physical address and

phone number.

We then monitor the abandonment emails we receive.

For this research study, we also looked at the shopping cart abandonment conversation metrics of

550 retailers who are Listrak clients across an array of verticals for a full year (July 2014-July 2015),

including conversation open, click to visit and conversion rates. In addition, we looked at the same

metrics, as well as design aspects, of the 50 top performing SCA campaigns of those retailers based on

conversation conversion rate.

Sources:

1. Internet Retailer Top 500 Guide

2. Internet Retailer Second 500 Guide