It's that time of the year. The malls are jammed, carols are playing in the grocery store, and Starbucks has already started distributing their famous red cups.
So what does this mean for online merchants? It's time to maximize efforts to attract as many holiday shoppers as possible!
Many consumers are avoiding the malls this year. New research from the National Federation of Retailers shows that 44 percent of consumers age 18 and older will shop online for holiday items this year, up from 42.4 percent last year.
While this growth is great for online retailers who want more site visitors, the fact remains that 96 percent of those visitors will leave without ever buying anything.
When devising your holiday marketing strategy, retailers and manufacturers alike should consider remedies for recapturing visitors who leave your site. You spend a lot of time and effort getting online shoppers to come to your site, but what about those who visit and don't purchase?
Since Labor Day, the shopping cart abandonment rate has gone up by more than 10 percent this year compared to 2009, according to SeeWhy.com. That's 7 out of 10 consumers who start shopping carts before abandoning them. Retailers simply can't afford to see any more abandoned carts.
A recent study by Forrester indicates there are five reasons visitors abandon their shopping carts:
- Shipping and handling costs were too high.
- The shopper wasn't ready to purchase the product.
- The shopper wanted to compare prices on other sites.
- Product price was higher than the shopper was willing to pay.
- The shopper just wanted to save products in their cart for later consideration.
That's a lot of abandonment going on. While there's no way to avoid shipping and handling costs, there is a way for retailers to get back in front of those individuals who have left their site.
Remarketing empowers marketers to get in front of viewers who have already shown interest in a product or service. With remarketing, those "lost" shoppers are shown ads for the product or service they initially eyed as they surf elsewhere on the web.
This means a retailer, through a highly targeted advertisement, can reengage with visitors who leave their site because they aren't ready to purchase. These ads can be very effective in battling reasons for abandonment by offering incentives and promotions like free shipping or 10 percent off holiday purchases.
Some of our advertisers have seen a 400 percent lift in ad response since implementing their remarketing campaigns. Yet, our survey found that remarketing is the most under-utilized online marketing technology.
Hopefully, marketers recognize this disconnect and see that the implementation of a remarketing campaign can be the best way to combat the rising cart abandonment rates this holiday season.