Natural Recovery Rates and Goal-hanging Remarketing Companies

What is natural recovery rate I hear you cry?

Simple - it is the cart abandon and recovery that happens without any email remarketing. In other words, it's latent revenue. As you can imagine, for those in the email marketing business, this oft-forgotten rate is a godsend. It's the proverbial tap in when the ball is on its way in anyway.

Natural recoveries can occur for many reasons;

a cart doesn't always get abandoned because a customer forgets to purchase. There are a myriad of reasons for customers abandoning but still possessing the intent to purchase leftover cart items. These can range from the simple ones, such comparing product prices, checking for cheaper shipping or forgetting PayPal addresses, to the ludicrous, for which you can use your own imaginations.

As such, it pays to know what your natural recovery rate is.

If your customers have a high propensity to recover naturally, it may be worth while having a look at what your chosen Remarketing Company is offering you in terms of additional recovery, particularly if you are paying them a percentage of the conversions they claim. You can work this out quite easily by setting up an A/B test to work out how many recoveries there are in each segment when, in the event of a cart abandonment, 50% of your email list receive remarketing and 50% don't. (Per-action script. Read more)

Tests at Fresh Relevance have placed that natural recovery rate to be around 1%, but it's important to take care with this number. Of course it varies by market sector. And more importantly there are several common ways in which it is exaggerated. Some remarketers advise a very short timeout for cart abandonment, so a shopper may be considered to have abandoned and recovered if they take a 15 minute break to answer the phone or go to the bathroom. And Fresh Relevance tracks shoppers across multiple devices, so if we see someone using their smartphone to research and then switch to their tablet to buy, we do not count this as an abandonment, but many other remarketing vendors can't do this and consider the same scenario as an abandonment followed by a recovery. Such factors lead to much higher reported abandon and recovery figures.

The natural recovery rate varies per company of course, so it is worthwhile doing your own research. But whatever the rate, some of your abandoned purchases will be subsequently completed anyway, regardless of what remarketing you do.

The main issue here is as follows:

If Remarketing Companies are taking credit for this pre-existent boost to revenue by not differentiating from the effects of their remarketing, are you overpaying for their services? With a high natural recovery rate, your business is already doing pretty well without expensive fees to Remarketing Companies. If email marketing yields a recovery rate of of 4%, but 1% of that is down to natural recovery, by not differentiating, they could be claiming credit for something their service is not providing.

Fresh Relevance offers an affordable and effective alternative. We don't hide natural recovery rates, offering you the opportunity to test how much this value actually is before removing any catch-alls and going live. This way you can be assured that we aren't taking credit for anything we aren't responsible for. We don't charge a percentage, so we have no reason to manipulate the figures. With real-time data captured in granular quality, we're really a cost-effective alternative to the goal-hanging ESP. Get us on your team today!

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