E-commerce continues to be one of the fastest growing retail sectors. The Census Bureau of the Department of Commerce reports over $89 billion in sales in the fourth quarter of 2015 in US markets alone. It is estimated that by 2018, US e-commerce sales activity will top $500 billion.
With the growth of online retail sales has also come further developments in models within the industry. The subscription-based online commerce model has made it easier than ever for businesses to move products and for consumers to access highly discounted items. In 2014, the subscription commerce industry generated $5 billion in revenue, and the number continues to grow exponentially.
A challenge with any e-commerce model is finding ways to reliably generate leads, while still producing respectable ROIs from an advertising budget. When it comes to subscription-based models, because the purchase is a longer-term commitment, top- of-the-funnel conversions are even less likely than those that are nurtured over time.
For e-retailers in any industry or sector, web forms are the most common way to capture contact information for leads, so that follow-up remarketing can be done to help motivate a purchase. Unfortunately, only about a quarter of people who start filling out forms will actually submit them. Since nurturing relationships is done through follow-up emails with special offers and personalized messages, capturing this unsubmitted contact information can be crucial to increasing conversions. Not to mention, every unsent form is advertising dollars that were not recouped.
An eForm Recovery Case Study
The problem: Over $58 billion was spent on digital advertising by retailers alone in 2015 to drive traffic and build leads. Therefore, every web form that does not get completed represents wasted potential for converting advertising dollars to revenue.
A major online subscription-based shoe company that used web forms to capture lead information found that they received a respectable 32,890 completed forms. MOV’s tracking discovered that an additional 101,238 forms were abandoned after users entered an email address, but did not press submit. With a form conversion rate of 24%, the retailer wanted to and a way to capture these unsubmitted leads in order to send personalized follow-up emails to unique visitors, encouraging them to return.
In a sense, they needed an insurance policy to help protect them from losing advertising money by not capturing real leads from unique visitors.
Proposed Solution: MOV’s Patented eForm Recovery for form abandonment is designed to capture unsubmitted contact information. When used with a form, it retains the information entered by unique visitors who did not press submit. This allows for remarketing in the form of personalized emails, display ads, social posts, direct mail or other marketing mediums designed to help draw customers back.
The Results: During a test period of October 1 to November 15, 2015, the subscription- based shoe retailer used MOV’s eForm Recovery solution to capture the contact information from the 101,238 forms that were not submitted. This allowed the company to send three highly-personalized remarketing follow-up emails to those who had visited the site without sending their forms:
•One hour after the form was started
•Two days after the form was started
•Three days after the second email was sent
In total, 264,382 remarketing emails were sent to the unique visitors who never submitted their forms, with a Total Bounce Rate of less than 3%, an Open Rate over 40%, and a Click Through Rate over 39%. Using MOV’s patented eForm Recovery solution, the company was able to convert 25,815 unique visitors of the 101,238 consumers with unsubmitted forms, at a 25.5% conversion rate.
This also protected their massive advertising budget from diminishing ROIs. With approximately $1 million spent to drive 1 million unique visitors to their website, when only 32,890 signed up, the cost per acquisition of each new client was around $30. With the additional 25,815 unique visitors captured, this number dropped to $17 cost per acquisition.
As far as revenue growth, with an average order value (AOV) of $65 per customer, per month, these 25,815 new customers returned $1,677,975 in net revenue for the 45 day period. The shoe retailer’s average client typically stays with them for a year with their premium service, which means their new annual potential revenue would increase by nearly $20 million.
MOV•ology™ LLC provides real-time automated web form abandonment solutions to increase ROI using our Patented Technology (US Patents 9,280,531, 9,286,282 & 9,589,281).