Boost eCommerce revenue with optimized checkout exit campaigns

In eCommerce, optimizing every stage of your funnel is crucial for maximizing conversions and increasing revenue. The checkout exit campaign is one key area where many online retailers can see significant gains.

Understanding the eCommerce funnel

Before we dive into the specifics of checkout exit campaigns, it's essential to understand the eCommerce funnel. This funnel outlines the stages a potential customer goes through before purchasing.

• Potential customers
  Every eCommerce business starts with potential customers. These individuals may be interested in your products but haven't yet visited your website. Your goal is to attract these potential customers through various marketing channels.
• Visit website
  Once you've captured their attention, potential customers visit your website. This is where the magic begins. Your website must be user-friendly, visually appealing, and optimized for conversions. First impressions matter, and your website is your digital storefront.
• View products
  After landing on your site, visitors start browsing your products. It's crucial to showcase your offerings effectively with high-quality images, detailed descriptions, and customer reviews. The more engaged they are with your products, the higher the likelihood of conversion.
• Add to cart or basket
  When visitors add a product to their cart or basket, it's a positive signal. However, many eCommerce businesses face challenges with this. According to the Baymard Institute, the average cart abandonment rate is around 70.09%. That's a significant number of potential sales slipping through the cracks.
• Go to checkout
  The "go to checkout" stage is critical. Here, customers are just a step away from making a purchase. Interestingly, the conversion rate from this stage is about 50%, which means half of those who reach the checkout process abandon it. Optimizing this stage can lead to substantial revenue gains.
• Purchase
  When customers complete their purchases, it's a cause for celebration. However, the goal doesn't end here. You want to turn one-time buyers into repeat customers, which we'll discuss later.
• Repeat purchase
  Encouraging repeat purchases is the holy grail of eCommerce. Loyal customers not only generate consistent revenue but also become brand advocates. Implementing strategies like loyalty programs and personalized marketing can help achieve this.

The checkout dilemma

Let's zoom in on the "go to checkout" stage. Despite reaching the final step, many customers abandon their carts. It's super frustrating when visitors get to this point and don't take the final step.

To address this, eCommerce marketers can deploy checkout exit campaigns.

What is a checkout exit campaign?

A checkout exit campaign is a strategic effort to re-engage customers who are about to abandon their carts at the final stage of the checkout process. It typically involves targeted promotions, offers, and incentives to encourage customers to complete their purchase.

Reasons for abandonment

Understanding why customers abandon their carts is crucial for designing effective exit campaigns.

Common reasons include:

• Second thoughts on their purchase
• Unexpected costs (shipping, taxes, fees)
• Complicated checkout processes
• Lack of payment options
• Concerns about security
• Distractions or interruptions

Addressing these pain points is the first step in optimizing your checkout exit campaign.

Signals of abandonment at checkout

Identifying the signals that indicate a customer may abandon their cart is essential for crafting effective checkout exit campaigns. Recognizing these signals allows you to intervene at the right moment and provide support or incentives to encourage the completion of the sale.

Here are some common signs to watch for:

• Mouse movement
  If you notice the cursor moving upward toward the address bar or exiting the checkout area, it could signal that the customer is ready to leave the site. Implementing an exit pop-up at this moment can help capture their attention.
• Long pause times
  Extended periods of inactivity during checkout can indicate hesitation or indecision. A gentle reminder or a special offer can re-engage customers during these critical moments.
• Page navigation
  When customers start clicking back or navigating away from the checkout page, it's a sign they may reconsider their purchase. Capturing this moment and prompting them with an enticing deal could prevent loss.
• Cart or basket review
  If customers frequently review their carts but do not proceed to payment, it may mean they are on the fence. Sending a targeted email or message with reminders of their items could help drive them back to the checkout.

Optimizing the checkout exit campaign

To maximize the effectiveness of your checkout exit campaign, consider the following strategies:

Targeting different incentives at different segments

Segmentation is critical to personalization. Not all customers are the same, and their reasons for abandoning carts vary. Tailoring your incentives to different segments can significantly improve conversion rates.

Different devices

Analyze your customers' behavior based on their devices. Mobile users might respond better to mobile-specific offers, while desktop users may prioritize different incentives.

For example., visitors with Apple devices convert better than those with Android or Windows as they tend to be more affluent.

Different traffic sources

Understanding where your traffic comes from can provide valuable insights.

Customers arriving from social media might have different expectations than those from organic search or paid ads.

Someone landing on your site from a product-based search will likely have higher intent than someone arriving from a more generic search. However, someone arriving from a branded search might not know what they want to purchase but will be more likely to purchase from you.

Predicted intent

Leveraging machine learning algorithms, you can predict the intent of customers. For example, if a customer is highly likely to convert, you might offer a lower discount. Conversely, for those with lower intent, a more substantial incentive could be the nudge they need.

You can also offer alternatives to lower-intent visitors, such as an email sign-up, or direct them to relevant content.

Cart or basket contents

Understanding items in a customer’s cart or basket is essential for effectively addressing cart abandonment. This information yields valuable insights into customer preferences and helps tailor exit strategies.

Are the items in the basket high in demand? Or do you have overstocks? You could deploy a more significant incentive to clear products with excess inventory.

Testing for offer sensitivity

Testing is the backbone of optimization. Experiment with different types of offers to see what resonates best with your audience. Some options include:

• Percentage discounts
• Free shipping
• Buy one, get one free (BOGO)
• Limited-time offers

With an offer platform, you can run A/B tests for different incentives and their values (e.g., 5% vs. 10% vs. 15% off). Monitor the results closely and refine your strategy based on the data.

Example: Testing '$ off' vs. '% off' for US Polo Assn.

RevLifter collaborated with US Polo Assn to test ‘% off’ and ‘$ off,’ which, if structured correctly, could boost profits by reducing the amount the brand gives away.

The experiment utilized RevLifter’s multi-variant testing to show the ‘$ off’ promotion to 50% of US Polo’s qualifying customers, while the other half saw ‘% off.’

For US Polo Assn, ‘% off’ discounts narrowly edged out '$ off.' So, the brand switched to ‘$ off’ to enhance profitability on every sale.