Black Friday and Cyber Monday were stellar sales days for most retailers, but they could have been even better.
According to a study by global marketing and data analytics firm IgnitionOne, online shoppers left $24 billion in would-be orders in their shopping carts during the year’s two busiest sales days.
At $4.3 billion, home goods and furniture had the second-highest total value of abandoned merchandise after telecomm products and services, with $1.9 billion left behind on Black Friday and $2.4 billion forsaken on Cyber Monday.
Nevertheless, shoppers abandoned their carts 7 percent more frequently on Black Friday than Cyber Monday, waiting perhaps until Monday to make a purchase.
Moreover, conversion rates for home goods rose on Cyber Monday, in lock step with ad spend, while the same companies saw a drop in Black Friday conversion rates despite higher year-over-year marketing expenditures, the study showed.
“There’s clearly a huge opportunity for retailers to extract even more revenue from visitors already on their sites and to continue to improve the conversion rates of their ad campaigns,” observed Christopher Hansen, IgnitionOne’s chief product officer.” In some retail segments, capturing just 5 percent of abandoned merchandise would result in more than $100 million worth of incremental revenue, he said.
His colleague, customer success senior VP Dave Ragals, said retailers can minimize drop-off by employing such tools as marketing and website personalization, triggered email, tailoring messaging to channel attributes and following through with advanced re-targeting methods.
“We expect that armed with the learning of this season, even more marketers will undertake these strategies to maximize ROI,” he said.
IgnitionOne said its cart abandonment estimates were derived by applying proprietary benchmark data tracked across more than 10 major categories, against internal and industrywide sales figures.