For most e-commerce platforms, one of the major concerns is the high bounce rate and the low conversion rate from website visitors. Some studies show that 98% of the visitors leave a website without converting. This means there is a very high percentage of users who have interacted with your website, but have not made a purchase on their first visit. The best way to attract these visitors back to your website and convert them is through ‘Retargeting’.
What Are Retargeting Ads and Why Should You Use It?
Retargeting ads are 76% more likely to get clicks than regular display ads. It has the ability to make or break an online business. As you invest extensively in bringing traffic to the website, the efforts and spends will go in vain if the visitors do not convert. This is where retargeting helps. It is a strategy to drive back the ‘window shoppers’ by re-capturing their interest. Each time your ad is displayed to customers, brand recognition increases while maintaining the product memory. After Google brand search ads, retargeting is the most important ad campaign that you must run. Building an effective drip marketing strategy is impossible without retargeting ads.
What Are the Best Practices for Retargeting?
1) Timing is key: There are a couple of factors to consider here based upon the stage of the customer journey – a) Time between the first visit and the first ad b) Frequency of ads.
For instance, if a customer adds a product to cart and does not complete the transaction, they could be immediately retargeted with coupons as the intent to buy is stronger. You also have to consider category behavior. People shopping for travel can be targeted almost immediately. Whereas, those browsing luxury products can be targeted at a later stage as the consideration stage is more drawn out. You must also set a frequency cap to avoid overexposure. Make sure you avoid displaying too many ads which could end up annoying a potential customer.
2) Structure your campaigns based on engagement level: The first step in segmentation is to define your goals – whether it is awareness or conversion. This depends on where the visitor is in the marketing funnel.
Awareness campaigns – This goal can be a precursor to conversion campaigns, directed at those that have had minimal interaction with your website. Focus on communicating the value you offer as a brand. The key metrics here would be impressions and engagement.
Conversion campaigns – Ensure that the users are provided with all the information required to make a decision. This can be done with a clear call-to-action that directs them to a specific landing page. For example, if someone had visited the product page earlier, it shows a certain level of interest. Highlight the key benefit in the retargeting ad and elaborate on how it caters to user needs on the landing page. The success of conversion campaigns would be defined by more specific actions such as website clicks, form submission or cost-per-lead.
Once you define your goals, you can segment users based on behaviour. Use data such as age, gender, interests and location to build user profiles, narrow your targeting and optimize ad spends.
3) Target existing/old customers: Google provides you with a window to target a user up to 540 days after their last visit on your website while Facebook provides a window of up to 180 days. You can utilize this window to re-engage with old visitors or customers for new product launches, time-sensitive offers, and shopping events. For example, when you are conducting clearance sales or launching an upgraded version of an older product, you can target consumers who have already purchased your products in the past and would have a greater brand affinity.
4) Know when to stop: Retargeting a user who is not interested in your product is a waste of your time and marketing budget. Also, customers who have completed a purchase can be moved to a separate campaign with other goals such as upselling or cross-selling to avoid spending ad dollars on already achieved actions. To pause ads for such visitors, we use a burn snippet, which eliminates converted users as well as those who did not click on the ad after a pre-defined number of impressions.
Retargeting ads offer website owners an opportunity to make hyper focused, data-driven decisions to convert casual browsers into customers. Not doing retargeting is like leaving money on the table. Like with every marketing strategy, retargeting ads must be in coherence with the overall digital plan. We, at Growisto, have developed solutions to target the relevant visitors at the right time.
Hit reply and let’s discuss a solid retargeting strategy for your business.