Abandoned vehicles are a big problem for online retailers. In fact, it is estimated that approximately $4 trillion of products will be thrown into the shopping cart this year alone. On average, dealers receive less than 15% of their abandoned vehicles, which leaves a lot of money on the table as dealers spend time and resources trying to get lost customers. and a staggering number.
To combat this problem, dealers need to take a different approach to the recovery of abandoned vehicles. This means segmenting their customers into different groups based on factors such as purchase history and likelihood of repeat purchases; this will help them determine the value that should be offered to increase the chances of a sale.
Data and classification
Segmentation is key to any successful dropshipping strategy because it allows marketers to focus their efforts on potential customers. It increases the chances of recovering lost money from previous purchases. How to divide? Where do you find this information? They’re all hidden in your data, and techniques like customer culture can be key to understanding them and translating them into action
Retailers should look to increase customer engagement as part of their abandoned cart strategy. This can be done using data-driven marketing efforts such as targeted emails and targeted advertising. Using these techniques will help make customers feel better, which can increase sales down the line.
Don’t take our word for it, read our actual study.
This represents a huge opportunity for businesses to recoup some of their lost revenue. In this study, we will look at how a company can increase its recovery rate and engagement in the segmentation process using customer retention concepts.
The company in question is a large retailer operating in the field of e-commerce. They have been dealing with abandoned cars for some time and are looking for ways to increase their recovery rate. To do this, the first step is to set up an abandoned car recovery system that is targeted at cars that are 15 minutes after they have been abandoned while offering a 10% discount as a gift. Slowly but surely the increase in recovery saw that after a few months it was down around 26%, well above the industry average and still leaving a lot of business on the table. What is the next step?
Classification and data-based systems
We approached them with a clear idea, and we decided to segment their customers into different categories based on their value and how long they have been customers. This allowed them to focus their efforts on the most valuable, high-quality customers to deliver personalized value in each region. In addition, we put together an automated system that will use different messages to target these segments in an effort to get them back in business.
The data at the center of this study as the segments themselves were built from specific store data based on the RFM (Recency, Frequency and Monetary) principles. In addition, the offers and information provided in each category are personalized using data, customer history analysis and industry metrics around discounts and rates. Using data to drive marketing efforts is key to a successful trucking strategy.
How do you and your business use your data? The first step is visualization. You need to see what’s happening in your business and understand the stories the data is telling. You can use this insight to make better decisions about where to focus your efforts. From there, it’s important to start analyzing the impact of different marketing efforts on your business so you can continue to improve over time.
If you’re not using data to make decisions about your abandoned car strategy, you’re leaving a lot of money on the table. Are you ready to start regaining those lost gains? Many dealers talk about abandoned cars as part of their daily business, but they are a huge waste of money as millions are being used to buy unconverted customers. These customers, often called “dropouts”, add products to their carts and leave the site without completing the purchase. Consumers lose an average of $58 per abandoned car, according to research by Baymard. This number is especially shocking when you consider that the average cart abandonment rate is 68%, which means that two-thirds of customers leave without making a purchase. That leaves marketers with a lot of work to do to win back those lost customers, and that’s no small task.
The results are spectacular
The results of this approach have not been surprising. The company saw a significant increase in their recovery rates, with one specific segment seeing an increase of up to 15% without any money being given! This results in saving money for the seller, increasing the purchase price, increasing the LLA of the customer segment, and increasing the number of lost customers. Additionally, they also saw an increase in new customer referrals, with many taking advantage of the offer they were offered and achieving a 30% recovery rate.
This case study shows the importance of segmenting customers and using data-driven marketing efforts to increase returns and engagement. It also demonstrates the effectiveness of customer retention concepts in achieving these goals. By adopting a segmented, data-driven approach, businesses can increase their opportunities to generate increased revenue and increase engagement with their customers.