How to use Cart Abandonment and Loyalty Signup Messages to Boost Activation for E-commerce Brands?
Building on the on-platform user experience tactics in e-commerce covered previously, this concept goes into the use of off-platform messages for user activation – specifically focusing on cart abandonment and loyalty signup prompts.
Cart Abandonment Messages:
Concept: When users add items to their cart but leave the site without purchasing, sending targeted messages can encourage them to complete the purchase. This tactic serves as a reminder and can often include incentives like discounts or free shipping to nudge the user back.
Example: An online electronics store sends an email with a 5% discount code to users who abandoned carts with items worth over $200, aiming to increase conversion rates.
Loyalty Signup Prompts:
Concept: Encouraging users to sign up for loyalty programs through messaging can lead to increased activation rates. This strategy builds long-term customer relationships and often involves rewards for repeated purchases.
Example: A fashion retailer offers 200 loyalty points for users signing up for their program, redeemable in subsequent purchases, enticing them to not only activate but also to continue engaging with the brand.
Experiment Design and Brand Impact:
Strategic Approach: When implementing these tactics, it's crucial to monitor not just the immediate activation rates but also the overall margin improvement. Be vigilant of the potential second-order effects these tactics might have on customer persona, long-term LTV, and brand image.
Additionally, it is important to measure conversion uplift over a significant time period, as there are generally diminishing returns after the immediate impact of implementation of such tactics.
Takeaway:
Off-platform messaging strategies like cart abandonment prompts and loyalty signups offer powerful tools for e-commerce brands to enhance user activation.
The 3 key aspects of experiment design are: the discount construct, the messaging channel (determining the delivery rate), and the messaging itself.
An important but often overlooked aspect is balancing the short-term conversion uplift with long-term customer value and brand perception.