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Online Food Retailer Slices and Dices Shopping Cart Abandon Rates to increase e-commerce sales by 70% in key regions
Technology Category
- Analytics & Modeling - Real Time Analytics
Applicable Industries
- Food & Beverage
- Retail
Applicable Functions
- Sales & Marketing
Use Cases
- Demand Planning & Forecasting
- Supply Chain Visibility
Services
- Data Science Services
The Challenge
LaTienda, an award-winning, family-owned business supporting artisanal firms in Spain, was looking for opportunities to grow sales. They had been seeing great success with their online orders, but they wanted to understand the impact on sales of varying shipping rates for a subset of products. They knew that a key product category required more expensive shipping methods if it was too far from LaTienda’s Virginia warehouse. They grouped visitors into two regions: Region A visitors were close enough to the warehouse to always get reasonable shipping costs. Region B visitors were everywhere else, and had to use a more expensive shipping method for the key product category.
About The Customer
LaTienda is an award-winning, family-owned business supporting artisanal firms in Spain. The firm works with small family-run businesses, many of which are dedicated to centuries-old food-making traditions. With warehouses in Williamsburg, Virginia and Alicante, Spain, the company ships hundreds of thousands of orders throughout the United States, Canada and Europe. LaTienda’s brand equity is built on its fundamental commitment to the customer experience. They guarantee a positive experience for its customers – quality products delivered in excellent condition, or they will replace or refund the purchase.
The Solution
To measure the impact on sales whenever one of the key products was placed in the cart, they installed Event Tracking to the “Add To Cart” buttons on every product page. They then used Advanced Segments Custom Reports to separate visitors in Region A from Region B, and drilled down to view performance by product category. Visitors from Region B were found to be 48% less likely to purchase if they placed an item from the key product category in their cart, which raised total shipping costs. To combat this effect, LaTienda.com implemented a less expensive, flat rate shipping model in region B and monitored sales.
Operational Impact
Quantitative Benefit
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