The consumer journey is experiencing radical changes as behaviours shift with developing mobile technologies. With these changes come challenges.
Cart abandonment rate is a colossal challenge, which, at times, is ignored. The truth of the matter is that cart abandonment equals a tremendous amount of lost sales, so it’s an area that every eCommerce company needs to overcome.
The process a consumer takes before purchasing online has changed dramatically. It’s no longer a case of identifying a need, information gathering, finding, and then buying. The overall journey is convoluted and the steps a consumer takes before purchasing are far removed from the predictable pathway of the past.
Baymard did a thorough analysis of 34 sources which came out with cart abandonment numbers in the e-Commerce industry.
According to their findings, an average of 68.8% shoppers abandoned their carts. Again – that’s a lot of revenue!
Why Are Cart Abandonment Rates So High?
Following further analysis, Baymard found that there were multiple reasons that made people quit. The graph below outlines the key reasons for cart abandonment.
As you can see, some of the top reasons include high shipping fee, complicated checkout processes (could be solved with better UX) and account creation requirements (which could be solved by adding a guest checkout).
How Facebook Remarketing Can Recover Lost Sales?
So, if your customers are abandoning their carts, however, still have an interest in your products, how can you get them back? Remarketing with Facebook is one very effective strategy as it allows you to:
- Segment people on the behaviour they performed on your website.
- Target them with customised marketing messages based on their behaviour.
- Boost your conversion rate and increase your marketing ROI.
- What is Facebook Remarketing?
Remarketing on Facebook is a strategy many companies implement in order to target users who have previously visited your site. Using browser cookies, you can create highly relevant advertisements based on the behaviour they exhibited on your site.
For an e-Commerce store, Facebook remarketing ads can help you identify user behaviour while they shop on the site and target them based on actions they took.
Why does Facebook Remarketing Work?
According to a study by Adroll, B2B marketers increased their retargeting budget by 51% and retail companies by 26% in 2015.
Why are Companies Investing More into Remarketing?
The answer lies in the fact that you can segment people and send them targeted messages which converts to more purchases.
For example, you can track everyone who abandoned your cart in the last 30 days and pitch them with an exclusive coupon code or free shipping on the product they chose earlier.
If you’d like to know more about remarketing, here are 10 interesting stats from Wishpond.
How to use Facebook Remarketing?
We’ve divided this post further into 5 actionable steps as to how you can use Facebook remarketing ads for your e-Commerce store
- Understand where and how people quit your funnel
Using Google Analytics and Facebook Ads, you can understand where people drop off on your website. In the above example, people drop off at the cart and checkout page and we can remarket such abandoners.
To further understand your audience, you can check a demographical division:
In this case, men between the age of 18 to 35 are more likely to convert than any other set. This would mean that remarketing cart abandoners who are men between the age of 18 to 34 would make a good audience.
- Create targeted audiences
Based on different conversion steps and journeys, you can segment your audience into multiple groups but firstly, you need to set up a facebook tracking pixel on every page of your website and then create custom audiences
To create a list of cart abandoners, you need to create a new Facebook audience using the “website traffic” objective. By including people who completed purchase behaviour right up to the cart page but did not actually complete a sale (i.e ‘thank you’ or ‘checkout complete’ page), you now have a cart abandonment audience.
- Serve the right marketing message
Now that you understand your funnel abandoners and have segmented them, it’s time to serve them with the right marketing message. Your message could vary according to your vertical, however you can work on scenarios like these:
Scenario A: Cart abandoners don’t purchase because they were simply not ready to purchase or they may want to compare other websites to get a better deal.
Scenario B: Cart abandoners may not have purchased if they thought that the shipping price was too high.
In the cases above, you could serve your audience with two types of ads:
Dynamic product ads: for Scenario A, these are ads where the user sees the same products which they abandoned from the website now in their Facebook feed to prompt them to return to purchase.
Creative template ads: for Scenario B, you could create a static image ad which offered a free shipping coupon to be used within the next 24 hours.
We recommend that you test both the ad styles and then assess and compare the performance of both.
Setting up dynamic ads : You need to get started with building a product catalogue in an XML or CSV file and integrating that with your pixel. Next, you need to set an ad template in which your ads would be displayed. This detailed guide illustrates how to implement dynamic ads.
In a nutshell, here is how you can get started with remarketing on Facebook today and start reaping the benefits for your store:
- Understand the different conversion steps before someone buys from your store
- Setup Facebook pixel on all pages
- Segment your audience base on the different steps they take
- Setup static ads with custom messages for people stuck at different parts of the funnel
- Setup dynamic ads to serve people the products which they abandoned