Most businesses and brands know the value of traditional advertising, such as radio and TV ads. Those methods are still effective, but now there’s a better way to reach your target audience: retargeting.
What is retargeting? Essentially, retargeting is when a company or brand displays ads that are relevant to a user based on their previous actions. For example, if someone visited your product website and purchased a sweater, you can retarget them with an ad for similar knitwear.
While retargeting has been around for a while, it mostly existed in digital marketing and advertising, which operates differently than traditional marketing.
So, what’s the difference? Let’s look at digital marketing and how retargeting works.
Why Should You Focus on Digital Marketing?
The line between traditional and digital marketing has blurred. Traditional marketing was once considered “cold” or “creepy” marketing, but thanks to innovative technologies such as retargeting, there’s now a place for everyone.
Today, anyone can be a digital marketer. Some are in charge of creating advertising campaigns and executing them, while others conduct research on consumers’ behaviors and make suggestions on products or offers that might be relevant to them. There are even some who do both.
What is fascinating is the evolution of marketing. Once considered an elite profession, marketers have now joined the ranks of designers, developers, and social media enthusiasts.
The goal of marketing is to reach and influence consumers to make a purchase. However, with consumers’ attention spans constantly shrinking, traditional marketing methods can seem ineffective.
On one hand, it’s great that traditional marketing is no longer considered “old school.” On the other, it’s alarming that with the new marketing methods comes the risk of losing customers.
Does that mean you should ignore the value of retargeting? Not at all. In fact, retargeting can be a powerful tool in your arsenal to reach and retain your customers. It just needs to be used correctly.
Let’s take a look at the various benefits of email marketing to help convince you.
1. Attracting New Audiences
With the growth of social media, many businesses have shifted their focus to attracting, engaging, and retargeting consumers through social media channels.
That’s because the digital sphere is a versatile place. You can not only post on social media channels, but you can also send emails, push notifications, and make phone calls.
All of those methods provide you with a platform to connect with consumers, build trust, and encourage them to make a purchase or become a client.
2. Enhancing Customer Retention
If you’re using retargeting correctly, you’ll be able to identify customers who are at risk of becoming inactive or dissatisfied with your products or services.
With retargeting, you can remind your customers of the value you provide and encourage them to stay engaged. Additionally, you can re-establish or enhance the relationship you have with past customers by nurturing them with relevant ads.
You can also identify new customers who might benefit from your product or service and retarget them with tailored (based on their previous interactions with you) marketing messages.
3. Reducing Customer Churn
The main goal of any business is to stay afloat. Reducing customer churn (the amount of customers who leave your business or products) is a great way to ensure that.
If your customers are engaged and happy, there’s a good chance they’ll remain loyal to your brand. Additionally, you can use retargeting to send relevant messages to past customers, which may encourage them to make another purchase or engage with your brand.
The above graph shows the significant rise of customer retention and the drop in churn rates among those who used retargeting. Those are some impressive stats. If you’re looking to improve your customer experience and grow your business, retargeting is a strategy you should consider.
4. Driving Product Conversion
If you’ve ever tried to convince a customer to purchase a product or sign up for a service you promote, you know how difficult it can be.
However, with retargeting, your goal is to get a customer to take the desired action, which in this case is to make a purchase. So, if you can get them to click on a link or enter a promo code, you’ve essentially achieved your goal.
In the above example, we can see that the introduction of retargeting helped drive a 20% increase in product conversion rates from visitors to customers.
5. Gaining Insights Into Your Market
To know what works and what doesn’t, you need to understand your target audience. However, collecting information about your target audience (i.e., demographics, psychographics, and marketing analytics) can be difficult.
That’s why businesses turn to retargeting. With retargeting, you can gain valuable insights into your target audience’s interests, behaviors, and motivations. Additionally, you can target individuals according to their interests, behaviors, and demographics to create custom audiences for your next campaign.
Retargeting also allows you to track the results of your campaigns and adjust your strategy based on what works (and what doesn’t).
6. Identifying New Revenue Sources
If your business is already operating successfully, why not try and expand your revenue streams? By retargeting, you can identify new revenue sources and gain access to additional marketing channels. For example, if you’re a fashion company, you might identify women in their 20s as a lucrative audience.
You can then use retargeting to send relevant ads to this demographic, which might encourage them to purchase your products.
7. Reducing Advertising Costs
Advertising costs can add up quickly, especially if you’re paying for each click or impression. That’s why businesses seek out cheaper (and more effective) methods of marketing.
Fortunately, retargeting offers a cheaper alternative to traditional marketing methods, because you only pay when a lead or customer takes the desired action (e.g., makes a purchase or signs up for your newsletter).
In the above example, we can see that the introduction of retargeting helped this online store reduce their marketing costs by 23%.
8. Improving Customer Experience
If you’re reading this, I assume you’re already aware of the importance of customer experience. However, having an excellent experience is something entirely different. It’s an experience that will encourage customers to come back for more, which can eventually lead to growth and sustainability.
To create an excellent customer experience, you must ensure that each interaction a customer has with your business is memorable and beneficial. Does that mean you should ignore the power of retargeting? Not at all. Instead, you should leverage retargeting to send customers relevant content that will encourage them to come back for more.
In the above example, we can see that the introduction of retargeting helped this business provide exceptional customer experience by re-engaging with past customers, gaining new insights into their needs and wants, and demonstrating that they value their opinion and believe in their ability to help.
9. Measuring the Impact of Marketing Efforts
To truly understand the benefit of retargeting, you need to look at not just the above statistics, but also the metrics that accompanied them. This way, you’ll be able to properly evaluate the impact of your efforts.
The main challenge is that many businesses don’t have the time to properly track the impact of their marketing efforts. That’s why we’ve compiled a list of the top 10 metrics you should be tracking, so you can properly assess the success of your marketing strategy.
10. Retargeting Metrics to Evaluate Your Strategy and Measure Progress
The list below details the top 10 metrics you should track to evaluate your retargeting strategy and measure progress. Keep in mind that not all of these metrics will apply to your business, so you must decide which ones fit best.
1. Number of visitors
The first and most fundamental metric to track is the number of daily visitors to your website. The more visits, the better. This shows you the interest there is in your niche and whether or not people are finding your content valuable.