With the increase in competition on the digital spectrum, businesses are struggling to stand out from the rest. There are currently 2.3 million small businesses in Australia alone and half of them are using a website. So how do you increase your share of the market by not only attracting more traffic to your website or social media accounts but also converting those leads into paying customers? In this article, we will discuss how to increase your conversion rate, through the use of retargeting campaigns. If you want to know more about increasing traffic to your social media accounts click here.
What is retargeting?
Retargeting is the practice of tracking website visitors who did not convert after they have left your website or landing page, and proceed to target them with catered ads to entice them to complete one of the following actions:
1. Download high-value content.
2. Subscribe to a newsletter.
3. Request a demo.
4. Book an appointment.
5. Start a free trial.
6. Purchase a product.
Retargeting vs remarketing
Retargeting is aimed at new prospects that have previously engaged with your website or social media channels but have not made a purchase or completed a desired action.
This involves finding out why they decided to leave and what you could offer to get them over the line.
Remarketing on the other hand is to keep in touch with previous customers to encourage them to invest in other products that are similar or complementary to already purchased items.
This will increase your customer lifetime value (CLTV), which is the amount of money you can expect from a single customer throughout their entire relationship with your business.
Why is retargeting essential to convert tire-kickers into purchasers?
1. The sad reality is that only 3% will convert into paying customers on their first visit to your website. So retargeting provides you a way to keep in touch with the other 97% that left your website.
2. 68% of marketing agencies now have a dedicated team whose sole purpose is retargeting. Showing just how crucial and important this marketing step is to their success.
3. Dr. Jeffrey Lant came up with the famous marketing rule of 7 stating:
“A prospect must be exposed to your brand a minimum of seven times before they buy your product or service.”
This is why modern advertising has skyrocketed with the use of modern technology to stay front of mind by retargeting their prospects.
4. Retargeting ads have an average cost-per-click of about 50% less than the cost of search ads.
5. To reduce cart abandonment by 6.5%.
6. To introduce new products or services that non-converted prospects were previously looking for.
If you want to geek out on more stats you can find the full list by clicking here.
Understanding custom audiences and tracking cookies
A custom audience is a list of people who have interacted with your organization before. From website visitors to people that have engaged with your social media accounts. This custom list of potential customers will help you cut down the cost of advertising, as you are reaching out to a more specified target audience.
Your website and social media channels have cookies that can track the customer’s journey, letting you know what they have viewed and at which stage they decided to leave your website. This is extremely useful to determine how to retarget them.
Knowing the difference between cookies, pixels and tags is also very important. You can find an in-depth comparison by clicking here.
Pixel based VS List based retargeting
List-based retargeting on the other hand is from a list of already acquired leads or prospects that you want to nurture and keep in touch with, this aligns more with remarketing.
How to efficiently retarget missed opportunities
One way of retargeting is based on the customer’s journey through the sales funnel.
If they have been on the homepage of your website or to a designated landing page but decide to leave, they are in the awareness or the consideration stage. Your retargeting campaign needs to be catered to nudge them towards the decision-making stage or the products page of your website. You can accomplish this by retargeting them with an Ebook or high valued content to show yourself as an authority figure and trusted source.
If prospects have gone all the way to your products page but have abandoned their cart, your retargeting strategy needs to be correctly adjusted to entice them to complete the purchase. This can be done by triggering a sense of urgency in the form of a limited-time offer on a discount, product scarcity, or discount on another similar product if purchased with the product that was abandoned in the cart.
Finally, the last stage of the funnel is retention and advocacy. How to keep your existing clients, have them purchase other products or services, and tell their friends about the wonderful experience they had. Your strategy needs to be relevant to your already existing customers as they have already viewed all your products and have made their decision on a particular item. Retargeting them needs to be centered around complimentary products that they didn’t know they needed. Upselling or cross-selling will increase the customer’s loyalty to your brand.
Retargeting beats all other ad placement strategies with a 1,046% efficiency rate according to Spyralitics.com. With the use of these modern tools, it is easier for you to get into the mind of consumers. To tweak your approach, making it more appealing for customers to invest their hard-earned money into your company, and hopefully have the satisfaction from your product or service to advocate on your behalf.
If you want to find out more about the technical aspect of retargeting campaigns, or would like for us to set it up for you, click the image below for a free consultation with one of our subject matter experts.