A potential $516bn being lost as only 20% of online retailers use an automated email for abandoned checkout items
UK and US online retailers are failing to capitalise on a potential $516bn in revenue by not using email to help recover customers who have abandoned cart items.
In dotMailer’s survey of 40 UK and US retailers, only 20 per cent sent a triggered email when a purchase was abandoned at checkout.
With checkout abandonment estimated to average at 67 per cent, and the UK ecommerce market in 2012 worth £78bn ($125bn) this means that the UK market is failing to target a potential £130bn.
Although it cannot be assumed that an abandoned item is always a lost sale, Forrester research has shown that the top two causes of abandonment are price and timing, both issues that could be addressed with an email offer.
The strongest performers in the category of brand email use through the purchase process included UK retailers Very.co.uk, Crocs and Mothercare. Sports brand New Balance’s UK online store outperformed all others with the most powerful email marketing throughout the purchase journey, with Office and Paul Smith in second and third place.
“In our Hitting the Mark reports, we’ve assessed online retailers email marketing, putting their proactive messaging under the spotlight,” said Tink Taylor, dotMailer co-founder. “With this report, we wanted to look at more reactive activity. The checkout is still the biggest point of exit from the online sales funnel; it’s a challenge that automated marketing technology like dotMailer’s gives retailers the opportunity to address. This research shows that, retailers have yet to take advantage of that opportunity.”
Meanwhile, the US market, worth $186.2 bn, is missing out on a potential $309 bn with brands like the Games Workshop and The Children’s Place in the US failing in their purchase process communications.