Rishi Rawat

When I started in 2008 my core thesis was that most purchase behaviors were rational. 9+ years on and 300+ experiments…

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Comments 5

  1. Hi, abandoned shopping carts are a huge opportunity.
    We found that in our market (office supplies) customers really use them as a storage device (in the morning someone says “I’ll place the office supplies order today, and loads products all day long). A supporting fact is that approx 50% of our sales are done after 4:30PM… And we sell mainly to businesses.

    BTW, I think the math in your last paragraph is wrong. If you lose $1 in all orders out of $4 profit, you are getting $3. To get to the same total GM dollars, you should sell 33% more.

    1. Post
      Author

      Hi Leo,

      If the customer is using the cart as a holding spot then I don’t think this idea will work.  Also, you are right about my math being wrong, I should have said 33%.  The best way to test such an idea is on a sku by sku basis.  I would start by picking a sku with a very high abandon rate.

      Rishi

    2. Post
      Author

      Hi Leo,

      I thought some more about your comment.  So here is my modification: pick a sku that has a high cart abandon rate.  During the test period increase item display price by $1.00 and give surprise $1.00 discount when the item is added to cart. Run this as a split A/B test.

      Rishi

      1. Hi Rishi, I think it can work!
        The challenge would be with repeating business (i.e. office supplies) twofold:
        a) Most of carts have 7 to 10 skus – a single item price might not be sufficent to force a change in behaviour
        b) Customers would learn… This should be done rotating the skus, or in some other unpredictable way. In fact, this could lead to increased excitement (“hey! I’ll buy there to see what great surprise I get when checking out”)

        1. Post
          Author

          Hi Leo,

          You are right, this strategy needs to be executed cautiously.  As you pointed out, it cannot be used for all scenarios.  Also, it’s value gets lost if shoppers figure it out.  Excellent points.

          Rishi

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