More Online Retailers to Employ Streamlined Email in 2011
Marketers may be reconsidering their email strategies in 2011. While email has long proved an effective strategy for increasing sales, consumers these days are communicating more through text messaging or social media. As a result, marketers are likely to reduce their email volume and attempt to make each email contact point more effective.
One of the biggest problems faced by online retailers is cart abandonment. The retailers have spent money, perhaps on search or display advertising, to get the customer to the site and ready to make a purchase. Then the customer leaves without placing an order. Currently, between 15–20% of all online retailers have a cart abandonment campaign and new research from Silverpop indicates that over 80% of online retailers plan to start using the tactic this year.
Silverpop’s research shows that businesses should target consumers who abandon carts with a unique email. These retargeting emails have higher open rates and a conversion rate that approaches 11%. This conversion rate is much higher than that produced by a general email campaign.
Loren McDonald, Silverpop's vice president of industry relations, says "Inboxes are crowded, the ‘noise' is louder than ever, and generic batch-and-blast emails are becoming less effective.” In addition, businesses should work to get the abandoned cart emails out quickly. Massachusetts Institute of Technology research shows that an ecommerce lead grows cold within 1 hour.
And marketers have a chance to connect with consumers after a sale is completed. Businesses surveyed by Silverpop indicate they use the following, personalized and non-broadcast emails:
- Service satisfaction survey 50%
- Product review request 43%
- Recommendation 29%
- Do not send 26%
- Bounceback 21%
- Cross-sell/upsell 19%
- Happy birthday 17%
- Reorder 17%
- Anniversary 12%
Look for marketers to increase their use of cart abandonment and other personalized email strategies this year.[Source: Tapping the Power of Triggered Emails. Silverpop.com. January 2011. Web. 23 Feb. 2011]