Recover lost revenue with CartHook – We recovered over $2,400 in two weeks

According to the Baymard Institute, 68.55% of all online shopping carts get abandoned before the order is completed. As an e-Commerce store owner, one of the best things you can do for your business is start working to decrease the percentage of carts that get abandoned on your own site. CartHook is a service built specifically for that purpose and they recently released support for Easy Digital Downloads.

68.55% is a huge number, but let’s put it in perspective. Assume for a moment that you run a store that generates $10,000 in monthly revenue. What would your revenue look like if you increased the number of sales by just 25%? We can use the following example:

Current sales = $10,000 per month
Current sales x 0.25 = $2,500 per month
$2,500 x 12 = $30,000 extra in annual sales

By decreasing your abandonment rate by 25%, you could increase your annual revenue by $30,000.

What is your abandonment rate? Do you know? A huge majority of store owners have no idea what it is, nor do they realize how much potential revenue they’re leaving on the table. Assuming that your store is relatively average (and that’s a good thing), your abandonment rate is likely in the range of 50-80%.

CartHook automates the sales recovery process by capturing email addresses as they are entered on the checkout screen. Once the email address is captured, it is placed into an email campaign that delivers reminder emails to the customer after set time periods, such as 5 hours after abandonment, 24 hours later, and 5 days after leaving checkout. If the customer completes the purchase at anytime after clicking on a link included in one of the emails, the cart is considered recovered.

Let’s look a bit more closely at what the flow of events looks like.

Customer lands on checkout screen

At this point the customer is pretty committed to making their purchase, so they go ahead and enter their email. The customer is then asked for payment details. Here they either change their mind or get distracted (perhaps get up to go find their wallet) and they end up not coming back.

The cart is abandoned.

One hour later CartHook sends the first email

CartHook automatically detects the contents of the shopping cart and then uses that information to fill out the first email reminder that gets sent one hour after the cart is abandoned. It looks something like this:

Campaign Email 1

If the customer clicks Review Your Cart and completes the purchase, the cart is successfully recovered. If the customer ignores the email or doesn’t complete the purchase  for any reason, they remain in the campaign.

24 hours later, CartHook sends the second email

At the 24 hour mark, CartHook sends a second email (as long as the customer has not completed the purchase and has not opted out). Again, this email includes details of the shopping cart:

Campaign Email 2

Five days later, one final email is sent

After five days, if the customer still has not completed the order, a final email is sent.

Campaign Email 3

These emails alone can dramatically decrease the percentage of abandoned carts on your site. The screenshots above are actually from our own CartHook campaign that we started on December 16th.

Since starting our own CartHook sales recovery campaign, we have recovered over $2,400 in revenue, and that was in less than three weeks.

Here’s a screenshot from our own dashboard showing the stats for December:

Screen Shot 2016-01-04 at 10.10.21 AM

Remember, we enabled our campaign on the 16th of December, so these stats represent just two weeks. In that time, we recovered 22.12% of all abandoned carts. Previously, our abandonment rate was 28.73%, and we dropped that by 22.12%. This improvement resulted in $2,198.50 in recovered revenue.

If we extrapolate those numbers out, we can expect to recover more than $25,000 this year alone, through a service that costs as little $99 per month. Would you pay $1,200 a year to earn $25,000? Yes, yes, yes.

CartHook is exceptionally easy to setup and configure, and they offer a free 30 day trial. We saw results in less than two weeks so 30 days is more than plenty to determine if the service will work for you.

The installation instructions on CartHook’s website will show you step-by-step details on how to setup CartHook with Easy Digital Downloads.

Don’t you think it’s time you started recovering those abandoned carts?

Comments

Love to see your results so far Pippin!

Happy to help any EDD users with getting set up.

Cheers,

Jordan
Cofounder
CartHook

Reply

I’m into it. As soon as I build that e-commerce site I keep meaning to build I’m jumping into this. Cheers!

Reply
lou.chou

I find this post a little strange considering you guys have your own sales recovery add-on. It appears to do the same thing, is it better some how? I’m suddenly feeling a measure of buyer’s remorse.

Reply

One is not necessarily better than the other. If one fits your needs and performs well, that’s excellent! We try to always offer multiple options so that customers are not required to all use a single system.

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Ulrich

How did you track the number of abandoned carts before using carthook?

Reply

These stats all come from Carthook so the abandon rate is provided by their metrics.

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Does this require the user to create a “pending order”, or does this service nab the email address before EDD creates the order?

Reply

No, it only requires that the customer enter their email address and then tab out of the field.

Reply
Peter

too expensive for the shipping of three e-mails

Reply

Peter,

It is only expensive if you do not recover any sales. If you recover more in sales than the service costs, it is immediately worth it. They also have a 30-day free trial, so you can test it risk free to see if it will be valuable to you.

Reply

It’s a lot more complicated than that!

But the complexity doesn’t matter, only ROI does.

If it makes you 5X to 10X ROI it’s worth it!

Reply
mel

WHAT an amazing new add-on. I’m SO happy I chose Easy Digital Downloads – it’s innovation like this that is going to help my business.

THANK YOU!

Reply
sccr410

I don’t at all see how this is possible with EDD’s one page checkout. The only time EDD collects an email address is on a completed purchase – so there is nothing to recover at that point. The only scenario is to have an existing user already logged in adding items to cart which for my site is rare. This is the biggest issue with recovering cart abandonment – there is no way to do it for first time users and that is where you really need it most.

Reply

That’s a good point: this will not work if you are using Buy Now buttons or the Gravity Forms Checkout extension. This depends upon the standard checkout screen.

The plugin detects the email address as soon as it is entered on checkout, so it does not depend on the order being submitted in any way.

Reply

Yup, all about our ability to capture the email as soon as the user types it into the email field and tabs out.

I used to run an ecommerce business with a one-page-checkout before starting CartHook, so one of our biggest priorities was ensuring it worked in a one-page-checkout setting.

🙂

Reply
sccr410

I am not using Buy Now buttons or the Gravity Forms Checkout extension. I am using the default EDD setup. I see no way to have this work with our site. What am I missing? http://www.sunshinephotocart.com

Reply
sccr410

Sorry, just saw the comment from Jordan about capturing the moment the user tabs out of the email field. I find it incredibly hard to believe that many people get to that point and don’t finish. But I guess that what a free trial is all about 🙂

Reply

That’s one of the unexpected values of the trial, you finally get to actually see how many people abandon after putting in their email.

And depending on how good/bad that number is, it helps you understand if you need to optimize the checkout process (number of fields that are required, etc.)

There are a lot of factors involved, including the price-point. You’ll get less abandonment when it’s a $10 product as opposed to $100 product, as expected.

One of the best things EDD does is having the email field all the way at the top of the page! That way you can actually reach (aka capture the email) the maximum number of abandoned carts.

Reply

I was wondering about a CartHook EDD extension since hearing how well the service worked for WP Rocket. If my math is right, you’re seeing roughly the same increase they did. Free plugin and free 30 day trial. Really encouraging.

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With a 30-day trial, there’s no reason not to try it.

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Damian Clem

Pippin –

I have to say that I have a LOT of respect for you and what you have done to build up EDD! You have great products. Keep up the good work. As a business owner, I know it takes a lot of time and effort to conceptualize, build and support the products that you provide your customers. I’ll be purchasing this CartHook extension.

Damian Clem – Etsy360.com

Reply

Thank you for the kind words! CartHook for Easy Digital Downloads is actually a free extension 🙂 https://wordpress.org/plugins/carthook-for-easy-digital-downloads/

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Jeff Starr

This looks interesting, but how does it work in terms of the CAN-SPAM Act.. seems like a good way to get your email address reported for sending “spam”.. if a user enters their email in the checkout form, but does not opt-in to any campaign or whatever, and then starts receiving unsolicited email.. it’s click click and your email is reported as “spam” and address flagged via gmail, hotmail, et al.

Of course, I’m probably missing something obvious here, hopefully that’s not the case.

Reply

That would be a good question for Jordan from CartHook to answer.

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Hi Jeff,

Thanks for bringing this up, it’s important to mention and explain.

The reason abandoned cart emails are CAN-SPAM compliant is because they refer specifically and exclusively to a transaction initiated by the user.

The analogy is with the Do Not Call Registry. If I’m a mortgage broker I can’t call you if you’re on the Do Not Call list. But if you call me and leave a message with my assistant I can call you back and be compliant. It’s because YOU initiated the transaction.

So, back to abandoned carts in an online setting. If a visitor to your site shows INTENT to purchase by going so far as to put an item in the cart, go to the checkout page, and put the email address into the email field, then you may reach out to them “in an attempt to complete the transaction that they initiated.”

That’s why it’s important to keep the abandoned cart email very focused on the purchase and nothing else. And you CANNOT add the email address to your normal marketing list.

That’s why we send out the email on our user’s behalf. First to have separation between our abandoned email list and the user’s normal marketing list. And second for unsubscribe protection – if a visitor unsubscribes they only unsubscribe from CartHook emails, not from our user’s marketing list.

Hope that helps!

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Jeff Starr

Thanks Jordan, that is great info and good to know.

So just to be clear, it sounds like:

– CartHook is not a standalone plugin/addon, but requires a 3rd-party service
– There is a monthly fee after the initial trial period
– Emails are sent from a CartHook email address

If these points are correct, then a few followup questions:

– Is there an initial cost for the plugin/service?
– How much is the monthly service fee?
– What does CartHook do with all customer addresses/info after all reminder emails have been sent?

Thanks again for your help!

Reply

Hey Jeff,

Here’s more info:

– Correct, the plugin connects your EDD store to our web app
– There’s a 30-day free trial and then there is a cost to the service
– Emails are sent “via CartHook” but the customer sees the email coming from your email address, and can reply back to your email address

And further:

– There is no initial cost to the service, you can run it free for 30 days and recover as much as you want before making a decision on whether to join as a paying customer or not (there is no credit card required for the free trial, though this may change in the future)
– The price starts at $99/mo, more details here: https://carthook.com/pricing
– The session details such as email, products in the cart, etc are all stored in your CartHook Activity page, which you can download

Hope that helps!

Reply
Jeff Starr

Yes that helps, thanks. Just to clarify on one point:

In my experience, users who receive any sort of unsolicited email quickly will flag it as spam via gmail, et al. So when you say that “the customer sees the email coming from your email address, and can reply back to your email address”, if/when the user flags the email as spam, it affects only the CartHook email address, correct?

Just seems kinda risky, because — trust me — people will flag just about any unwanted email as spam in the blink of an eye. Regardless of whether or not the email is legal and/or in compliance with CAN-SPAM.

And as you know, addresses that are flagged as sending spam pretty much become useless over time. Even worse, domains that are associated with flagged addresses typically end up on spam blacklists, which basically kills all email sent via the domain.

Thanks again for shedding some light on these important concerns.

My pleasure. Just to reiterate, any spam complaints would harm OUR sending domain and not yours.

And we work hard to make sure our deliverability is awesome, seeing as it’s critical to our business.

Jeff Starr

That’s awesome, thanks again for the helpful infos.

Phil Vallender

Sounds awesome and I look forward to running a a free trial. Are you able to summarise the key differences between this service and the features of the EDD Sales Recovery add-on though? That would help buyers select the right one.

Reply

The biggest difference is simply that one is a stand-alone service and one runs inside of your WordPress site as a plugin only. Both EDD Sales Recovery and CartHook are designed for the same purpose: to recover abandoned checkouts. In terms of feature differences, there isn’t that much. Both offer the ability to send a series of emails; both allow customers to unsubscribe from the emails at any time; both include reports to help measure and gauge the successfulness of your recovery effort.

I would recommend that you evaluate both and decide which you prefer. They can both work exceptionally well.

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Damian Logghe

I had the same question as you. Basically the EDD Sales recovery only works for already logged users, while Carthook capture emails right on the input fields which also includes new users that just arrived to your site and you don’t have an account yet.
I just started my 30 days trials to see if its worth the money 🙂

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Damian Logghe

I just got an email from support telling that if the user is not registed and they get into paypal or stripe and then abandon the email it’s also capture on EDD sales recovery. Worth to mention it

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Phil Vallender

Thanks Damian. This is a big help. I guess it comes down to ROI at the end of the day – let us know how you get on with carthook?

Reply

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