The e-commerce sector is booming, driven largely by the multichannel connectivity of smartphones and other mobile devices. To remain competitive, online stores must be creative and develop effective strategies for driving traffic and building customer loyalty. Given the high number of abandoned carts on e-commerce sites, what strategies can be used to win back customers and close the sale? SMS marketing is an effective yet underutilized tool with untapped potential.

Abandoned carts – revenue going up in smoke

Among the various strategies for driving traffic and building customer loyalty on e-commerce sites, we see good use of order management notifications (order and shipping confirmations) via SMS, as well as product promotion texts. These strategies, which combine transactional and relationship marketing, generate more lead conversion and customer loyalty.

But what about managing abandoned carts?

More than 65% of shopping carts on retail sites end up being abandoned, representing a significant loss of potential revenue! How can your online store optimize cart recovery and generate more sales?

A study of 150 European e-commerce sites analyzed the use of abandoned cart follow-ups and found that fewer than 5% of e-commerce businesses use them. In fact, out of 146 online stores, only 7 were using follow-ups. This lack of interest in the method may stem from the limited capabilities of e-commerce platforms, which are often poorly suited to relationship marketing. Their lack of flexibility and message customization options leads to disengagement from conversion optimization strategies.

Knowing that it takes very little to nudge most visitors into making a purchase and becoming customers, neglecting this marketing opportunity is not ideal for businesses. With a potential 1% to 5% increase in revenue through cart recovery, it is time for e-commerce sites to implement impactful strategies to combat cart abandonment. In the face of changing consumer behavior, SMS marketing is a strategy that can and should be part of your company's toolkit.

SMS: a sharp tool for boosting cart recovery

Implementing an SMS program for abandoned cart follow-ups is a real competitive advantage today. In fact, fewer than 2 out of 10 e-commerce businesses have such a program. Yet, your company has a significant opportunity here to generate additional revenue and drive conversion and loyalty.

Before developing an impactful and tailored cart recovery strategy, it is essential to understand the reasons for cart abandonment and to implement an effective data collection strategy on your e-commerce site.

Collect the customer information you need

Don't wait to collect the information you need to implement your cart recovery strategy! Collect the visitor's phone number as early as possible in the checkout funnel. How? Leverage the quality of service provided through SMS updates or promotions. Don't be afraid to be bold, as the figures show a very clear appreciation for SMS by users.

Identify the reasons for cart abandonment

According to a study (Forrester Research), the reasons for cart abandonment are based on a few recurring factors. Shipping costs deemed too high by the visitor are often a reason for abandonment, as is a checkout process that requires creating an account. Indecision also plays a role, as does a lack of time (visitors connect from anywhere, at any time, without necessarily having enough time to complete their purchase).

Use all this information to develop compensation strategies to reduce the number of abandoned carts on your online store from the outset.

And why not combine information collection with identifying the reasons for abandonment by creating an SMS survey campaign about why they left? This will allow you to better meet your customers' needs in either case.

Choose a relevant timing for your SMS follow-ups

Your choice of timing for follow-ups is crucial for optimizing your online store's conversion rate. A study of over 65,000 abandoned carts showed that 53% of conversions occur within the first few hours after abandonment. At 2 hours, the conversion rate is 11%, while it drops to just 6% 24 hours after the cart was abandoned. For your SMS abandoned cart recovery program to have a major impact, it is imperative that your follow-up SMS are sent within the first 12 hours.

Your follow-up timing must also be tailored to your market and products. It should align with the time required to make a purchase decision in your online store's specific sector. A fashion retailer might implement very quick follow-ups, whereas a travel site, where the purchase decision requires more reflection, comparison, and/or consultation (with a partner, for example), would opt for a more spread-out follow-up schedule.

Other criteria can also allow for targeted and relevant segmentation of your follow-up timing. For example, you can segment based on the value of the abandoned carts, choosing a quick follow-up for carts under €100 and a longer delay for higher amounts.

Create impactful SMS to optimize your cart recovery rate

Several proven strategies exist to boost the conversion rate of your SMS abandoned cart recovery program. Be creative and use multiple strategies to give your prospects as many opportunities as possible to complete their purchase!

Promotional SMS

One strategy is to use promotional SMS targeting specific items in the cart. The goal is to encourage the user to complete their purchase, not to turn them into a repeat cart abandoner, so be measured! For example, offer this type of promotion to prospects, while sending existing customers a promotion for a future purchase if the current cart is validated within 24 hours. Reward loyalty, not abandonment! Free shipping or a discount on the item price are both effective follow-up strategies for your SMS campaigns.

Rich SMS

To encourage the completion of a purchase, cross-selling is also an effective strategy. Suggesting related items linked to what is in the cart is highly relevant via SMS. Using rich SMS allows you to integrate visuals and descriptions into your cart recovery campaigns, prompting the recipient to act quickly. Using dynamic content increases the ROI of your SMS marketing campaigns significantly more than simple follow-up SMS for abandoned carts.

SMS is becoming a must-have for e-commerce cart recovery marketing strategies. By using an SMS API, you can easily create an SMS notification program from your admin interface and generate call-to-action SMS. By engaging the customer in real-time, you strengthen the relationship while optimizing your cart recovery rate.