Why Retargeting is Important In Marketing
Retargeting. Why do you need it? How does it work? What exactly is it? Let me explain.
Why Retargeting Is Necessary?
Retargeting potential customers is just as important, if not more important than cold marketing. Don’t believe me? Think of it like this. You wouldn't ask someone to marry you the first time you met them! So why do so many businesses expect their customers to buy from them as soon as they’ve learned they exist? It’s absurd. Potential customers need time to build trust with a business and need to identify them as an industry leader before they want to buy at a high rate, and it takes time to build that rapport.
How to Build Rapport with Retargeting.
Getting conversions and sales from an audience that has never heard of your business before is possible, sure. But what is your conversion rate for that ad, probably somewhere around, 1-2%? Getting potential customers to trust you and eventually buy from you will take some time and a well-crafted marketing funnel.
Your first step as a business should be to capture the interest of your custom cold marketing audiences. You can do this by providing real value to them the first time they learn of you. Many businesses choose to run a giveaway as their first ad. This can be a physical product or service they are giving away or simply the giveaway of knowledge in the form of a video or blog post. This audience and giveaway should be targeted in a way that you can guarantee with very little doubt that the people who clicked your ad or watched your video are interested in your product or service.
The next step is to retarget the people who showed interest in your 1st ad by adding them to your email marketing audiences or retargeting them on social media using either your Facebook Pixel or custom audiences. One example could be creating a new custom audience of everyone that completed a desired action or could be when they watched more than 75% of your video or even when they filled out the giveaway webform on your website.
The more times your business connects with these potential clients the more likely they are to purchase, and you will see likely see an increased conversion rate after the 1st time that you retargeted them.
Any experience marketing professional will tell you retargeting is important, but many marketers fail to understand how important retargeting is. Let’s look at the numbers. On market average 72% of all shoppers abandon their shopping carts. Only 8% will return. By creating re-targeting ads YouNoWeNo can bring back on market average 26% of cart abandoners to complete their purchases. These kinds of retargeting ads have an average 10x higher Click-Through-Rate (CTR). It goes without saying that business that are not re-targeting their cart-abandoners are costing themselves conversions and sales.
How Important Is Retargeting Existing Customers?
Finding new customers is just as important as returning old customers.
Building and strengthening your relationships with existing customer using custom audiences is a proven way to generate social media engagement and is a cheaper way to market in general. Adobe conducted a study that looked at the conversion rates of repeat customers and they found that a customer who has purchased from your store 2 times before is 9x more likely to convert again than a first-time shopper. While conversion rates vary from industry to industry, many experts have estimated that the average conversion rate is between 1% and 3%. Since this is the average conversion rate, it’s safe to assume that a repeat customer is much more likely to convert than other shoppers. This is great news for your business, because the more repeat customers you have, the less you need to spend on conversion tactics like abandoned cart offers and cold marketing.
You can dramatically increase social media likes and website traffic by rewarding your most loyal customers with marketing campaigns containing discounts, promotions, and other relevant offers that make the repeating customers feel special and rewarded for their loyalty.
By rewarding your customers loyalty, you can grow your brand image and sales. When loyal customers feel loyal and appreciated, they will share news about your company, recommend you to others and proactively spread the word about your business to their social groups at a much higher rate than first time purchasers. Not because you asked them to share something but, because they truly want to.
Don’t have the time or knowledge for marketing or business growth? Contact YouNoWeNo. We help business like yours every day grow their business.