A recent article in The Economist reveals that savvy retailers have made a number of breakthroughs when it comes to the science of persuading people to buy. Their discoveries provide fascinating food for thought for online marketers too…

U.K. based Sainsbury’s is probably one of the leaders when it comes to understanding and taking advantage of buyer psychology and consumer behavior.
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A case study published in MarketingSherpa recently illustrates how to convert a percentage of shoppers who abandon your shopping cart.

Diapers.com set up a system whereby an email was sent to any registered user who abandoned their cart. The email went out at least 24 hours AFTER abandonment and featured the items left in the cart.

Why the wait? Many of Diapers.com’s customers ordered online late at night. The company reasoned that it was better to give these customers some space before contacting them again.

The emails were:

personalized, using the customer’s first name;

included three text paragraphs in order to get the key message to readers who might have images turned off in their email program; and

included a “View Cart” hotlink to allow customers to click through and complete the purchase.

As a result of this approach…

Diapers.com’s conversion rate was 129 percent higher than that achieved by any previous marketing campaign; and

The emails sent after abandonment made up 10.4 percent of the total revenue from Diapers.com’s email marketing program despite constituting just 2.7 percent of the total volume sent.

We have long advised clients to specifically follow up on customers who abandon their shopping carts. We also do this for our own sites and have been exceptionally pleased with the business we’ve received from customers who, for a range of reasons, didn’t complete their original order. (Hint: it’s not necessarily because they’ve changed their mind about buying from you…)

Source: MarketingSherpa, “Focusing on Referrals, Abandons Helps Eretailer Grow List, Bolster Sales”, MarketingSherpa, September 10, 2008