Top 4 Reasons 70% of People Abandon Their Carts

Welcome back The DTC Letters. It is Michael from AdSumo Digital.

Before you read, be sure to download this free training I wrote on How We Generated a DTC Brand $175,000 in EXTRA Revenue in just 74 Days Through Direct Response Email Marketing And how they'll add $1 million in ARR because of it (link)

In today’s newsletter, we will go over:

• 1 Action item that will generate you more sales overnight (if you implement it)

• The most common reasons people abandon their carts

• Top tweets and threads of the week

Actionable Tip of The Week

This weeks actionable tip of the week is going to be around customer research.

More specifically, about pin pointing the top 20 people who have spent the most money with your brand and what you can learn from them.

So we all know (I hope) that the easiest person to sell anything to is the person that has bought from you before.

Well did you also know that we also have the most to learn from those people as well? More specifically the ones who have bought over and over and over and over again.

Have you ever stopped and thought “Why does Bertha from Toledo, Ohio spend $12,400 a year buying from our Shopify store?”

Well…you should. Generally speaking it costs the same amount of money for your to acquire a customer who spent $100 with you one time VS Bertha who spends $12,400/year with you.

Who would you rather have? Bertha takes the win (unless you don’t math very well…)

I want you to:

• Pull a list of your top 10 - 20 customers (sorted by amount spent over all time - aka LTV)

• Study their

  • Social medias

  • Study their posts (don’t be creepy)

  • Their customer journey (How they became a customer)

• Then reach out to them to do 2 things

  • Express your gratitude

  • Ask them their 3 favorite things about your brand and 3 things they wish was better/different

Now I know what you are thinking, “Michael, Why do you want me to stalker my customers?”

We aren’t stalking, its called Market Research ;)

We want to find out what is different about these customers who spend $12,400 a year with your brand VS the ones who spend $100”

This is going to give you a HUGE amount of insights, ideas, and angles to use in your marketing.

Whether its for:

• FB Ads

• Ad Creatives

• Email Marketing

• Organic Content

You want to be tailoring your marketing to your most valuable customers.

After this exercise you will have all the ammo and knowledge you need to bring in what we like to call as whale customers and ditch the customer support ticket discount hungry Karens.

Reply to this email if you have any questions and let me know how much your top whale customer has spent with you! I’d be interested to see your answers.

Top Links of the Week

Tweets

• A great tweet showcasing an amazing email by OLIPOP (link)

• Here’s a video I recorded on how to leverage the uniqueness of your brand/product in your marketing to increase sales (link)

• Why you can scale faster by retaining customers rather than acquiring new ones (link)

Threads

• How we increased a 7-Figure brand's email marketing revenue by 226% in just 18 days with a few button clicks (link)

• An Email Marketing Thread for Beginners (link)

Interesting Things of the Week

• The most bizarre cross over I have seen in the DTC space (link)

• An interesting take from Jimmy Kim, Founder of Sendlane, that I actually agree with…to a degree (link)

Top 4 Reasons People Abandon Their Carts

What’s more annoying then paying to show someone an ad, getting them from the ad to the product page, having them read everything, click the glorious “ADD TO CART” button, and then disappear?

I can’t think of anything either!

It’s kinda like getting that “On My Way” text from your friend (or that special someone 😉) and then them never…showing…up.

Yet 7 out of 10 people on average Abandon their Carts!

Why are people so heartless?

Here are the Top 4 Reasons People Abandon Their Carts:

1. Extra costs are too high

No one likes surprise $12.56 shipping.

So why do you still have it?

Offer free shipping or at least be transparent from the start.

Don't create any friction during checkout.

It's the most crucial part of your sales funnel.

2. An account is required

(my least favorite when buying products)

Unless your product is a SAAS,

People don't want to create an account to buy.

At least not on the first sale.

Instead, do this in the welcome flow while leveraging member-only content

Check out my Welcome Flow thread 🧵 to learn more.

3. Slow delivery

Very few people have the patience to wait for their product.

Amazon has set a new standard for shipping.

Gotta hop on the wave eventually.

4. Checkout took too long

Don't cause friction.

Create an experience.

Don't sacrifice a smooth checkout for extra information.

Use a post-purchase flow for that instead.

Take this time to audit your brand and see if there’s any potential to improve 1 of the 4 things above (there’s gotta be at least 1)

Talk next week and let me know below how you liked this weeks email.

Poll Question

How I Can Help

1. I will be posting free weekly training videos on my Youtube channel (link)

2. I have over 7,000 tweets on scaling your DTC brand using your brands Email List (link)

3. If you are looking to better monetize your DTC brands email list, we have worked with brands in several niches from Health & Wellness to Luxury brands and helped Country Life Natural Foods increase their email list revenue by 97% in just 61 days. (Apply Here)