Why Your Abandoned Carts Aren't Converting To Sales

"Why aren't my abandoned cart emails converting to sales?" So, this question popped up a few days ago in a small business boss group I'm in and I felt compelled to write about it.

Let's first address WHY people are adding products to their cart.

I know for myself, I like to "window shop". I like to go to websites, look at all the pretty things, add them to my cart {you know, just in case... for later} and I jump ship, because A.) I don't currently have the funds to purchase, B.) Don't NEED what I'm shopping for at the moment, or C.) I'm going to wait for a sale or discount (which is why having an email list is so important, so people can subscribe to your sales, etc. Read more about that HERE).

You see, someone like me greatly appreciates those abandoned cart emails, so don't feel discouraged. I love when I get a little reminder that pops up because, if we're being honest, I window shop A LOT -- on several different sites. Aside from leaving 1,000 tabs open on my phone or computer, those emails are the only thing connecting me back to what I wanted to purchase {at a later date}. It's not so important to look at the number of sales missed that are tracked by abandoned cart emails, because people WILL come back when they are ready to make that purchase and it might not be by clicking the abandoned cart email, but that email may have reminded them, if that makes sense.

How exactly do we get a higher conversion rate on abandoned carts?

The secret is simple. You raise the prices on your product and offer a more enticing incentive to come back, like a higher percentage discount or dollar amount off per sale.

"But I can't raise my prices, I will out price my product and no one will buy." 

WRONG.

This is the biggest misconception among small business owners. They are always so afraid to take this leap, but want to know where the sweet spot is. Well, this is it. This is the sweet spot.

This is the difference between a business owner and a crafter. All too often I see small business owners with the crafter mentality. We all know what that is... They slash their prices in an attempt to undercut the competition, but end up underpricing themselves so badly they end up out of business in 5 years or less because they didn't understand how to "business".... or how to "math", for that matter.

If you are making money with your craft, you are a business, therefore, a business owner, and you have to start thinking like one. If you are a handmade small business, you have even more of a reason to have higher prices being that you don't just buy and resell -- you actually make your own products. You have a lot more time invested than typical retailers.

Not only is raising your prices going to raise your abandoned cart conversion rate, but it's going to increase your sales overall because now you have the flexibility to offer sales more frequently. What do buyers like? Buyers like a deal, even if they just think they are getting a deal, and we are all guilty of it.

"I don't like playing mind games with my customers." Umm, OK. You do you, Rhonda, but this IS what works. It isn't a mind game, it is strategy based on extensive research and human habits. Your buyer wants what you're selling, but they want to think they received a deal, so you give it to them.

Imagine going into your favorite brick and mortar store. I don't know if you do this, but I definitely do. I find something I love, check the price tag, walk around with it in my cart, then go put it back at the very end because my kids need the things more than I do, BUT -- if that product is on sale -- you've got me, and the higher the sale, the more likely I'm going to buy, because "What if these mauve sequin PINK Victoria's Secret joggers aren't here tomorrow in my size?" or "What if this sale ends tomorrow?". The sense of urgency has been created. Your virtual abandoned cart is no different. 

In addition to raising your prices, sweet spot #2 is: Create a sense of urgency.

Your abandoned cart email should contain 2 things: an enticing discount {25% or higher} and a sense of urgency, like, "Complete your purchase now and use code 'XYZ' for a limited time, while supplies last!" OR make an expiration for your code. Make sense?

A rule of thumb for retailers is to price products 4x or higher than the original price they purchased wholesale for. They bank off the few that pay full price during their initial release, have a 25% off sale a few weeks later, where they will still make a great profit, then at the end of season, they'll hold a 50% off sale, where they will still make double the money that they spent, so why in the world should your small business not be doing the same?

Did this blog post help you? Did you raise your prices and offer higher discounts to more effectively convert sales? I want to hear about what works for you in the comments below!

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