ATLANTA, Sept. 15, 2008 -- Sometimes the convenience of online shopping just isn't convenient enough, and items get left in shopping carts. When that happens, e-retailer Diapers.com sends harried moms a gentle reminder. And they boost revenue doing it.
As with many online retailers, Diapers.com - the nation's largest online retailer specializing in baby care products - experienced high abandoned shopping cart rates. MarketingSherpa estimates the average cart abandon rate for e-commerce sites is nearly 60 percent.
Companies anxious to respond to customer behavior in very meaningful and targeted ways have found that optimizing the integration between their email marketing and Web analytics platforms delivers strong results. By integrating Coremetrics LIVEmail with Silverpop, Diapers.com was able to achieve a strong revenue boost.
"Tight integration of an email solution and Web analytics platform enables marketers to reach customers with unique messaging," said Elaine O'Gorman, senior vice president of marketing and product strategy for Silverpop. "The two solutions should work seamlessly to give marketers full visibility into the effectiveness of their email campaigns and allow them to target customers precisely and effectively."
Items are held in Diapers.com's abandoned carts for two weeks, and no enticements such as discounts or sale promotions are part of the "come back" email marketing program.
"Because our customers are mostly moms with young children, they lead pretty hectic lives," said Matt Lindenberg, assistant director of marketing for Diapers.com. "They probably got pulled away from their online shopping to tend to their kids. Our reminder emails show that we noticed their cart additions and remind them to return to Diapers.com to finalize their purchase."
The program has delivered solid results. In May, Diapers.com sent out thousands of abandoned shopping cart messages. The open rate for this campaign was 48 percent higher than any previous campaign and the click-through rate was 78 percent higher. Additionally, the net conversion rate was 129 percent higher than any previous campaign.
Naturally, Lindenberg is very pleased with the abandoned-cart campaign. "Once you develop a program like this, it runs automatically and in the background. Since abandoned carts were essentially all lost orders, the additional revenue generated is gravy," he said.
In fact, the Diapers.com campaign made up only 2.7 percent of the email volume for May, but contributed 10.4 percent of the total revenue from email marketing. "It's a useful, up-front investment in time to recoup sales that are just being lost," said Lindenberg.
Silverpop is a premier email service provider delivering a comprehensive array of on-demand solutions serving the online marketing needs of enterprise-level organizations throughout the world. With highly scalable tools supporting both BtoC marketing initiatives and BtoB lead management processes, Silverpop delivers a robust suite of marketing tools not available elsewhere in the marketplace. Best practices and white papers are available at www.silverpop.com.
As dads themselves, company founders Marc Lore and Vinit Bharara understand diapers all too well. Tired of the 'diaper runaround' - midnight store runs for diapers, frustrated searches for the right diaper size, wasted time waiting in store lines and traffic, and lugging big diaper boxes with their little ones tugging at them - they created Diapers.com. Their goal: To offer the widest selection of baby necessities anywhere, the convenience of fast, free shipping, great values for their customers, and the best customer service around. Their bigger mission: To play a small part in making things a little easier and less expensive for new parents and caregivers often faced with an overwhelming barrage of new duties and responsibilities. Diapers.com carries everything from large brands like Pampers, Huggies, Similac and Enfamil to smaller toy, skin care, potty training brands and more. Find out more at www.diapers.com.
Coremetrics is the leading provider of digital marketing optimization solutions. Coremetrics' solutions encompass advanced online analytics and precision marketing applications, including search engine bid management, email marketing and cross sell applications to acquire customers more cost effectively, increase conversion rates, and increase lifetime customer value. To learn more about Coremetrics, visit www.coremetrics.com.