The average open rate of abandoned cart emails is 39.07%, according to Mailchimp. Abandoned cart emails are one of the subtle engines driving modern marketing. But are these emails transactional in nature? And how are they triggered?
What Are Abandoned Cart Emails?
Abandoned cart emails are messages sent to visitors who added products to their cart but didn’t complete a purchase. These emails serve as reminders of items left behind and often come with extra incentives, such as discounts or free shipping, to encourage completing the transaction. Understanding how they work is key to making them effective. Let’s dive deeper.
Abandoned Cart Emails vs. Other Marketing Emails
Abandoned Cart Emails: Are They Transactional Or Commercial?
To answer this, we first need to understand the difference between transactional and commercial emails.
Transactional emails include information directly related to a transaction, such as order confirmations, shipping updates, and password resets. Their primary function is to convey information, not promote products or services.
Commercial emails, on the other hand, aim to engage customers in ways that drive sales, like offering discounts or encouraging purchases. Understanding these distinctions is essential since they determine the legal regulations these emails must follow.
Legally, the argument is they can be seen as transactional because they relate to a customer’s action of adding items to their cart. However, these emails often occupy a gray area between transactional and marketing content.
If an abandoned cart email reminds customers of their incomplete purchase, it leans more toward being transactional. However, if it includes promotional content, such as a discount code or recommended products, it becomes more of a marketing email.
Do Abandoned Cart Emails Require Consent?
The classification of abandoned cart emails affects the regulations they must follow.
Under the General Data Protection Regulation (GDPR), transactional emails don’t require explicit user consent, while marketing emails do. If an abandoned cart email is considered commercial, it must meet the strict consent provisions under GDPR.
The California Consumer Privacy Act (CCPA) limits how personal data can be used for direct marketing. If abandoned cart emails are deemed marketing emails, businesses must comply with CCPA’s opt-out requirements.
Under the CAN-SPAMAct in the U.S., transactional emails don’t need to follow the strict rules set for commercial emails, such as offering recipients the ability to opt-out. However, any marketing content in an abandoned cart email may trigger those requirements.
5 Steps To Craft Compliant Abandoned Cart Emails
When creating abandoned cart emails, marketers should consider the following best practices to avoid legal complications:
- Keep It Transactional: Focus your abandoned cart emails on the customer’s cart. Avoid including promotional content unless you’re prepared to classify the email as a marketing message and follow the associated regulations.
- Add Value Without Crossing the Line: If you include promotional content, make it a helpful suggestion, not a sales pitch. For example, instead of offering a discount, suggest complementary products that add value to the items in the cart.
- Transparency and Compliance: Always clarify why customers are receiving the email. If you include marketing material, ensure you have the customer’s explicit consent, as required under GDPR and CCPA.
- Test and Optimize: Continuously test your abandoned cart emails to balance between conversion and compliance. Important metrics to monitor include email open rates, click-through rates (CTR), and overall conversion rates.
- Be Customer-Centric: Prioritize the customer experience. If your emails feel pushy or overly sales-driven, they may lead to unsubscribe requests or complaints.
Abandoned Cart Email Example: The Amazon Approach
Amazon’s abandoned cart emails are part of a comprehensive strategy to engage customers at every stage of their shopping journey. The system is highly automated and personalized. When a cart is abandoned, an email is triggered reminding the user of the items left behind, along with suggestions based on their browsing history and previous purchases. Amazon’s approach combines behavioral tracking, data analytics, and personalization, contributing to its high conversion rates.
In A Nutshell
Abandoned cart emails are perhaps the most effective tools in an e-commerce marketer’s toolkit. Whether you’re a global giant like Amazon or an emerging online retailer, the principles remain the same: timely, relevant, and personalized communication is key to reclaiming lost carts and converting potential losses into actual gains.
What’s Next?
Want to create campaigns that incorporate abandoned cart emails into your marketing strategy? Drop an email at support@sootraconsulting.com or visit Sootra Consulting.