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How to Decrease Shopping Cart Abandonment Rates with Direct Mail

Imagine if 70% of shoppers abandoned their carts at your local Target.

Joking aside, this is a major issue for e-commerce businesses, as it translates to an estimated $18 billion in lost sales revenue each year. There is nothing more frustrating than working hard to drive traffic to your online store only to lose the sale at checkout.

The average cart abandonment rate is 70% and mobile users abandon their carts at an even higher rate of 86%.

50% of those shoppers abandon their cars due to shipping-related issues. They get sticker shock after seeing how much their total order costs with shipping, but what about the other 20% who leave?

It can be for a number of reasons, including but not limited, to:

  • Difficult website navigation.
  • Lengthy checkout process.
  • Had to create an account.
  • Lack of payment options.
  • Security concerns.
  • Unclear (or non-existent) return policy.

Or, it may be as simple as the person was just shopping around. They don’t buy on their first visit, so there’ll always be a percentage of abandoned carts.

While achieving a 0% cart abandonment rate isn’t realistic, there is an effective way to reduce abandonment rates and improve conversions through direct mail retargeting.

Online retailers are often surprised to learn that nearly 90% of direct mail is opened and that it has an astounding ROI of 112%. They are even more surprised to learn that direct mail outperforms both email and digital ads. In fact, response rates by channel is:

  • Direct Mail: 5.3%
  • Email: 0.6%
  • Online Display Ads: 0.2%

If you’re looking to decrease shopping cart abandonment rates, it may be time to get your business into the hands of lost customers–literally.

In this article, we’ll cover what online retailers need to know about reducing abandonment rates with direct mail, including:

Three Ways to Decrease Shopping Cart Abandonment Rates

1. Email Retargeting

Capturing a shopper’s email is a common tactic. We’ve all seen the “Wait! Before you go, get 10% off your first purchase when you subscribe to our email alerts!” pop-ups. This tactic is popular because it captures the shopper's email address right off the bat and creates a direct line of contact with the shopper.

Note: In the past, email retargeting was commonly done via website cookie tracking. Today, new technologies allow users to block cookies or delete them upon closing the browser.

2. Ad Retargeting

Since shoppers have become immune to online ads, ad retargeting has one of the lowest response rates. Unfortunately, ad reach will continue to decrease, thanks to technology like ad blockers and bots that click on ads and drive up costs.

3. Direct Mail Retargeting

Direct mail is so effective for three reasons: visibility, tangibility and trustworthiness.

The best part about direct mail is that you likely already have the shopper’s address. Most e-commerce storefronts have a multi-step checkout process and addresses are collected during the first step.

Best Practices for Direct Mail Retargeting

Double-check that they didn’t already make the purchase.

Carts aren’t always abandoned for weeks (or for good). Sometimes distractions intervene and the purchase isn’t made until the next day. Compare your website visitor list to new and/or existing customers before sending them a direct mail piece.

The message should feel like a happy coincidence.

If someone adds a two-person tent to their cart, don’t send them a discount code for a soccer ball. The discount should be for tents; bonus points on sending a catalog for tents, plus all related camping gear.

While personalization is key to retargeting through direct mail, there is a fine line between personalization and intrusiveness. It’s best to avoid letting the recipient know you were watching their behavior on your website as it can diminish the inherent trustworthiness of direct mail. Instead, make the recipient feel like your business understands them by anticipating their needs.

Get the mail out quickly.

Time is of the essence with any retargeting strategy. Waiting too long can result in the shopper completing their purchase elsewhere, so it’s important to get the direct mail piece into their mailbox as quickly as possible.

Don’t worry, you don’t need to invest in a new department to handle designing, printing and mailing. Direct mail retargeting is easy to outsource to an all-in-one e-commerce fulfillment partner.

All-in-One E-Commerce Fulfillment with GLF

For more than 20 years, GLF has partnered with e-commerce brands to deliver all-in-one e-commerce fulfillment services, including:

While we deliver fast, our team always takes the time to learn your business goals and provide proactive recommendations that help grow your business.

Contact us today to learn how GLF can support the continued growth of your business.

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