We've placed Cart Abandonment automations at the top of our list because in our experience
- They can generate significant, immediate, and consistent revenue for any eCommerce business.
- They have perhaps the highest ROI of any automation.
- They are easy to set up and maintain.
When trying to increase revenue for your business, it's best to start by optimizing your existing sales funnels and maximizing revenue from existing customers. Acquiring new customers is 5x more costly and 3-12x more difficult than selling to existing customers. That's because existing customers have already gone through your sales funnel, while new customers have not. While cart abandoners aren't exactly existing customers, the same general principle applies: they're easier to convert because they're already further down your sales funnel.
To estimate how much you can earn from a cart abandonment email program, try these quick calculations:
- Identify how many abandoned carts you had last month in Google Analytics.
- Multiply that number by the average conversion rate of cart abandonment emails (18.64%).
- Then multiply that by your average sale value.
If you had 150 abandoned carts last month, you could convert about 28 of them (150 x .1864 = 27.96). And if your average sale value is $200, you could make $5,600 from one simple, automated email campaign. Over 12 months that adds up to serious profits ($67,200).
If your CA automation is really good, you can get far better results. We were able to achieve a 220% increase in conversions for our client Autonomous using a cart abandonment email strategy. Also, consider that every customer who abandons a cart represents marketing dollars you wasted sending them through your sales funnel. CA automations also help you recover that lost marketing spend.
So if you really want to calculate the full value of cart abandonment emails, then you should factor in the recovered marketing spend:-
- Calculate your average cost per sale.
- Multiply that by the number of recovered carts.
- Add that number to your total.
If your average cost per sale is $100, then you'll recover $2,800/month in marketing spend - bring your yearly ROI to $100,800.