What is Retargeting and How Can It Boost Your E-Commerce Sales?

What is Retargeting and How Can It Boost Your E-Commerce Sales?

Learn about retargeting, a powerful digital marketing technique that helps bring back visitors who left your site without making a purchase. Discover strategies and tools to implement effective retargeting campaigns.

Retargeting, often referred to as remarketing, is an essential digital marketing strategy for e-commerce businesses looking to enhance their sales. It's a method that focuses on engaging with visitors who have left your website without completing a purchase. Given that a large majority of visitors leave a site without converting—often around 97%—retargeting provides an opportunity to re-engage and convert these potential customers.

Table of Contents - What is Retargeting? - How Does Retargeting Work? - Retargeting vs. Remarketing - Types of Retargeting Campaigns - Benefits of Retargeting - How to Implement an Effective Retargeting Campaign - Tools for Retargeting - Best Practices for Retargeting - Case Studies and Examples - Final Thoughts

What is Retargeting?

Retargeting is a digital marketing tactic designed to bring back potential customers who have previously interacted with your brand online. Whether visitors have merely browsed a few pages or abandoned a shopping cart, retargeting helps remind them of your brand and encourages them to return and convert. By using cookies or pixels, businesses can track visitors' online activities and serve them relevant ads on different platforms after they leave the site.

For instance, imagine a user visits your e-commerce site, looks at a pair of shoes, but leaves without purchasing. Later, while browsing another site or using social media, they see an ad for the exact same pair of shoes. This targeted exposure can rekindle interest and remind the potential customer to complete their purchase.

How Does Retargeting Work?

Retargeting primarily operates through the use of browser cookies or pixels inserted into your website's code. When a user visits your site, a cookie is stored in their browser. This cookie tracks the user's behavior on your site, noting which pages they visit and products they view.

When the user leaves your site and continues browsing the internet, the pixel triggers ads for your products on other sites or social media platforms as they surf. This process is dynamic, allowing for personalized ad experiences. Retargeting can be executed via various digital channels such as display, search, email, and social media source.

Pixel-based Retargeting

This method involves placing a pixel, a small piece of code, on your website. Each time a visitor comes to your site, the pixel drops an anonymous cookie that follows the user through the web. This allows you to display your advertisements to these visitors as they browse other websites.

List-based Retargeting

If you’ve collected email addresses, you can upload these lists to a platform like Facebook or LinkedIn to retarget users with specific ads. It's a powerful way to reach out to contacts who have already expressed a willingness to engage with your brand source.

Retargeting vs. Remarketing

Though often used interchangeably, there are subtle differences between retargeting and remarketing. Retargeting usually refers to online ad placements shown to past visitors. Remarketing, however, typically involves collecting visitor contact information to send out emails reminding them of products they viewed, offering promotions, or suggesting similar products source.

Types of Retargeting Campaigns

Various retargeting strategies can be employed based on target audiences and business goals. Here are some popular types:

  • Site Retargeting: Engages users who have visited your website but didn’t purchase, by serving them relevant ads on other sites.
  • Search Retargeting: Focuses on users who have searched for specific keywords related to your products and serves them ads.
  • Social Media Retargeting: Utilizes platforms like Facebook, Instagram, and LinkedIn to retarget users based on their interactions with your site.
  • Email Retargeting: Sends personalized follow-up emails to users who showed interest in your products or abandoned their carts source.

Benefits of Retargeting

1. Enhanced Brand Recall

Retargeting ensures that your brand remains at the forefront of users' minds. By providing multiple touchpoints, retargeting increases brand visibility and familiarity, making it more likely for users to return and complete a purchase source.

2. Improved Conversion Rates

Since retargeting specifically targets users who have already shown an interest in your products, the conversion rates tend to be significantly higher than regular display ads.

3. Cost-Effectiveness

Retargeting can be more cost-effective than acquiring new customers. It focuses on individuals who are already familiar with and interested in your offerings, reducing the need to convince them from scratch.

4. Personalization and Relevance

Retargeting allows for highly personalized ads based on users' past behaviors, leading to more relevant and engaging advertising experiences.

How to Implement an Effective Retargeting Campaign

Step 1: Define Your Goals

Align your retargeting strategy with specific business objectives, whether it’s increasing sales, recovering abandoned carts, or growing brand awareness source.

Step 2: Segment Your Audience

Divide your audience based on behaviors, demographic data, and where they are in the purchase funnel. This allows for more personalized and effective messaging.

Step 3: Choose Your Platforms

Decide where you'll run ads: Google Display Network, Facebook, Instagram, or email, depending on where your audiences are most active.

Step 4: Design Creative Ads

Create visually appealing and persuasive ads emphasizing your product’s unique selling points. Employ varied ad formats to prevent user fatigue.

Step 5: Monitor and Optimize

Continuously track your campaign performance, using metrics such as click-through rates (CTR), conversion rates, and return on ad spend (ROAS). Adjust the campaign based on these insights source.

Tools for Retargeting

  • Google Ads: Offers extensive reach through search and display networks, plus tools for segmenting and serving ads strategically.
  • Facebook Ads Manager: Capable of serving highly targeted ads across Facebook, Instagram, and Messenger.
  • AdRoll: Known for simplifying the creation and management of diverse retargeting campaigns and integrating with major marketing platforms.
  • Criteo: Specialized for dynamic retargeting, offering personalized ads based on user behaviors source.

Best Practices for Retargeting

  • Utilize Frequency Capping: Prevent ad fatigue by limiting how often a particular ad is shown to a user.
  • Message Differently Based on Behavior: Tailor your ads based on the specific actions taken on your site, whether it’s a product view or an abandoned cart.
  • Align Landing Pages with Ads: Ensure a consistent experience by directing users to landing pages that mirror the ad's message and visuals.
  • Experiment with Ad Sequencing: Spice up the user journey by showing a series of related ads to tell a compelling story or showcase different features.

Case Studies and Examples

  • Nasty Gal employed retargeting to re-engage visitors who had browsed specific clothing items but did not purchase. By showing them personalized ads based on their browsing behavior, they increased their conversion rates significantly source.
  • Thrive Market used email remarketing to remind customers of the benefits of membership and encourage renewals. Personal touchpoints like this made existing customers more likely to return and convert again.

Final Thoughts

Retargeting remains a crucial element in the arsenal of digital marketing strategies for e-commerce businesses. By precisely targeting those who have interacted with your brand without converting, retargeting helps keep your offerings top-of-mind, ultimately boosting conversion rates and maximizing return on investment. By employing effective strategies and using the right tools, you can transform passive visitors into active, loyal customers.