A bounce back offer is a special discount or incentive that a business provides to customers who abandoned their shopping cart or did not complete a purchase. The goal of a bounce back offer is to encourage the customer to come back and complete their purchase by offering them something extra for their loyalty or continued interest.
Why do companies use bounce back offers?
There are several key reasons companies utilize bounce back offers:
- To reduce shopping cart abandonment rates – Studies show that about 60-80% of online shopping carts are abandoned before purchase. Bounce back offers help recover some of this lost revenue.
- To build customer loyalty – Bounce back offers make customers feel valued and appreciated which builds goodwill and loyalty.
- To turn browser into buyers – Many people browse online without intent to buy. A bounce back offer can give them that extra incentive to make a purchase.
- To maximize conversions – Bounce back offers typically convert at much higher rates than generic promotional offers so they improve conversion rates.
When are bounce back offers sent?
Bounce back offers are usually sent within a few hours or days of a shopping cart being abandoned. The timing depends on the company but some common times include:
- Within 1 hour of cart abandonment – To capture people who may just need a quick extra incentive.
- 24 hours after abandonment – Allows time for customer to receive the offer and still remember their cart.
- 1 week after abandonment – To remind customers they had interest in making a purchase.
- 15-30 days after abandonment – To re-engage customers who have likely forgotten their cart by now.
What methods are used to send bounce back offers?
Bounce back offers are delivered via:
- Email – One of the most common methods. Email open rates tend to be higher as they are personalized.
- SMS/Text Message – More urgent channel that many customers see quickly.
- Messenger Apps – Like SMS but utilized apps like Facebook Messenger.
- Push Notifications – In-app notifications to users who have abandoned cart on mobile.
- Retargeting Ads – Display ads targeted to users who recently abandoned cart.
What types of discounts or incentives are used?
Some of the most popular bounce back offer incentives include:
- Percentage discount – Like 10-20% entire order.
- Free shipping offer – Covering the shipping cost.
- Free gift with purchase – Like a free item, gift card, or subscription.
- BOGO sale – Buy one get on free or half-off second item.
- Loyalty points – Extra points added if complete purchase.
- Exclusive promo code – Special personalized promo code.
How big of a discount should be offered?
There are a few factors to consider when determining the size of the bounce back offer discount:
- AOV – The average order value. Higher AOV orders can support a larger discount.
- Margin – The margin or mark-up on the products. Higher margins allow room for larger discounts.
- Cart value – The size of the abandoned cart. Larger carts may warrant higher discounts.
- Industry norms – Competitors’ pricing and discounting should be considered.
Most bounce back offer discounts tend to range from 10% to 30% off. Here are some examples based on cart value:
Cart Value | Bounce Back Discount |
---|---|
$25 | 20% off |
$50 | 25% off |
$100 | 30% off |
Otherbounce back offer best practices
Some other tips for creating effective bounce back offers include:
- Personalize the copy – Use their name and item details.
- Make it time limited – Expire the offer after 7-10 days.
- Highlight scarcity – Limit uses or available quantities.
- Utilize pop-ups and overlays – For high visibility.
- Test different variables – Discount size, messaging, timing etc.
What are typical bounce back conversion rates?
Conversion rates on bounce back offers vary quite a bit based on factors like the industry, discount amount, cart value, and more. Here are some example recovery and conversion rates:
- Recover 15-25% of abandoned carts – If 25% abandon, recover 4-6%
- 2-4X higher conversion vs. regular promos – So 10% vs. 2.5% conversion
- 1-5% conversion on abandoned cart email – Depends on size of list and offer
- 5-15% conversion on catalog or retention emails
- 15-30% conversion on high value carts – Bigger discounts on big orders
Companies will commonly A/B test bounce back offers to optimize the messaging, timing, and deal to maximize conversion rates.
What tools can you use?
Some popular tools used for bounce back offers and campaigns include:
- Email service providers – MailChimp, Constant Contact, Klaviyo
- CRM platforms – Salesforce, HubSpot, Zoho
- Email automation software – Omnisend, Customer.io
- AI assistant platforms – Ada, Clearbit, ZeroBounce
- SMS marketing apps – Postscript, Avochato
- Analytics software – Google Analytics, Mixpanel, Heap
Key takeaways
- Bounce back offers encourage customers to complete abandoned purchases with discounts or incentives.
- They are sent via email, SMS, ads, and in-app within hours or days of cart abandonment.
- Typical discounts range from 10-30% off and recovery rates are 15-25% of lost carts.
- Personalization and time limitations help increase conversion rates.
- Proper tagging and analytics tools allow for testing and optimization.
Conclusion
Implementing bounce back campaigns allows ecommerce businesses to recover revenue from the 60-80% of customers who typically abandon their carts. The further investment in the customer through personalized, timely incentives helps build loyalty while generating significantly higher conversion rates. With the variety of available tools and technology, businesses of all sizes can set up automated and optimized bounce back offers to minimize shopping cart abandonment and its impact on their bottom line.