Benefits of Remarketing and Retargeting
Can you imagine if three-quarters of shoppers in a grocery store just walked away from their carts? Left a gallon of ice cream just sitting in their basket melting? There are two reasons why folks don’t do that in the physical world: 1. They specifically got dressed and took the time to travel there and 2. It would be embarrassing for other people to see them leave their cart in the middle of the supermarket and head out the door. But that’s exactly what happens online. Nearly 72% of virtual shoppers in the United States abandoned their carts. Remarketing and retargeting can lure them back to the cart and checkout.
What is Remarketing and Retargeting?
Remarketing and retargeting are strategies for recapturing prospective buyers. Remarketing typically refers to reaching out via email. Retargeting attempts to lure “almost buyers” back to your website through internet ads. Cookies are used to track visitors to your website. Pixels allow this information to go to ad providers. You need to know who visited your website, what products they looked at, and whether they placed items in a cart, but then bounced and didn’t complete the purchase.
Where Did They Go?
There are many reasons why someone places something in a cart and then abandons it. Maybe their WiFi went down or their computer ran out of juice. Or their cat was screaming to be fed. Or they had to suddenly go to the bathroom. Who knows? You certainly don’t want to assume that they changed their mind about buying your product. What you know for sure is that you came so close to making a sale.
How Much Are You Losing?
This statistic is a bit dated, but Business Insider estimated in a 2015 article that $4 trillion (with a “T”) worth of merchandise is abandoned in carts. That article referred to a 2013 statistic that about 74% of carts were abandoned. Not much has changed in the convening years. Including the fact that a large percentage of those almost customers can be convinced to complete the sale with compelling follow up ads and emails.
Closer Than You Think
The stats on retargeting are stunning. The click-through-rates (CTR) for retarget ads are 10 times higher than display ads (.07 CTR the first go-round; .7 CTR on the second go-round.) Oh, it gets better: 70% of customers who view your retarget ad are likely to convert. In fact, retargeting may increase your conversion rates by as much as 147%. Now, a caveat: If done right. That’s where we come in.
Look at Yourself
To understand why retargeting works, study your own online behavior. How many times did you spend an hour – or a day – researching a product, but not buying it? How often did you then see ads popup for that product wherever you went online? Did it annoy you? Or did it remind you of your interest? What works for you is usually what works for others. It’s like the salesperson who takes the time to call a prospective buyer. It reminds a person of why they wanted to buy and can spark them to move forward with the sale.
Remarketing Email Campaigns
Recapturing a prospective buyer through email is very powerful. Especially when the email is sent within three hours after they have abandoned their cart. According to Listrak, open rates for remarketing emails were 22.5%. Conversion rates were 20%. And, get ready for it – click to open rates were 42.7%. (This is based on an analysis of 950 retail clients’ email campaigns.) These are the kinds of numbers that are nearly impossible to achieve with initial contact emails.
You will have a better response to your retargeting campaigns with creative emails. You want to do more than just say, “Hey, do you still want to buy this thing?” Or sending something that looks like a bill for goods. You also need to figure out what incentives will work. A discount? Free shipping? Just being clever? This is where hiring creative marketing folks (like us) increases your response rates – and your sales.
More Than the Sale
Obviously, everything you do in advertising and marketing is to increase sales. Ultimately. Attempting to lure back a customer who abandoned their cart is not just about making the sale. Retargeting and remarketing increases brand awareness. It gives you greater insight into your customers. They’ve already shown an interest in your company and your products. Get to know them better and increase your base of loyal customers.
It’s Cheaper to Keep ‘Em
It’s easier to keep customers than to find new ones. Even though technically the person who abandoned their cart is not yet a customer, they’re no longer a stranger. The products they selected give you an idea of who they are and what they want. It helps you customize your message. With the right ad or email, you can be right there with them – helping them in their decision-making process. The cost to close the sale with your new friend is far less than with a stranger. Our process will prove that.
Setting up a solid retargeting and remarketing scheme for your business results in more sales. It will increase your brand awareness. More importantly, it reduces your costs by reaching out to potential customers who have already shown their interest in your products. Affix Advertising can help you take full advantage of all the benefits of retargeting and remarketing. Before you know it, many of those abandoned carts will make it through the entire checkout process.