Remarketing, by definition, is about reconnecting with customers and leads who might otherwise slip away. In this context, remarketing becomes an effective safety net that you can use to protect your bottom line. However, the process offers far more than this.
Let's take a look at this in more detail as we explore what remarketing and Google remarketing are and identify how they can directly benefit your business.
So, what is remarketing, and how does this work? Remarketing is a form of second-stage targeting in which you are reaching out to users who have already shown an interest in your products and your brand. Basically, a lead visits your web page, and this visit is recorded in your analytics. From here, you deploy ads that are personalized to this previous visitor in order to convince them to return and convert.
This represents a great opportunity. While marketing, in general, has a broad reach, it is far easier to convert someone who has already shown an interest in your products or services than to nurture a cold lead. What's more, ad offerings from search engines such as Google make remarketing relatively simple, so all businesses can benefit from this fantastic resource for revenue growth.
But how do your analytics tools log user visits? Where does the data come from to make remarketing possible? It all comes down to cookies. When users accept cookies on your website, they are storing a small amount of code that is linked to their IP address but does not cover any sensitive personal information. This cookie is then recognized by search engines or another ad platform and is used to deliver targeted advertisements directly to these users.
Whether you are using Google for your remarketing or another ad platform, this strategy can really drive revenue for your business. Remarketing connects your organization with a range of different capabilities.
As much as you might like to, you are never going to convert all of your leads. You are always going to lose leads at some point along your acquisitions funnel via a phenomenon known as churn.
Churn is a major problem for businesses across the world. In the United States alone, customer churn is estimated to cost businesses around $136 billion each year. What's more, this issue often goes ignored — businesses believe that as long as conversion rates are generally good, they don't need to worry about "the ones that get away".
However, this is not the case. Reducing churn rates by as little as 5% can result in a profit gain of around 25%. Remarketing is a relatively straightforward and largely automated means of achieving this.
Allowing your cart abandonment rate to get out of hand is equivalent to running a race almost to the finish line, and then giving up. You have already brought in a lead, nurtured this prospect, and then convinced them to consider a purchase. Letting them slip away could be costing your business a lot of money.
Cart abandonment rates vary greatly but tend to be significant. A study conducted by Baymard Institute examining published abandonment statistics between 2012 and 2020 found the average rate to be just under 70%. This is a huge missed opportunity for your business. You already have a wealth of data relating to what the customer is interested in and engaged by — remarketing simply helps you put that data to work and potentially salvage a sale.
So far, we've looked at how remarketing is helping businesses bring back leads who have slipped away, but there is far more to a remarketing strategy than just this. The idea that a lead nurturing funnel does not end at the point of conversion is gaining traction among businesses, and the right remarketing campaign strategy gives businesses the tools to take that nurturing journey way, way beyond.
If a lead browses your products, they are warm, probably even hot. By the time they have purchased a product, they are converted to customers, but are they truly engaged with your brand? Think about your own experience as a customer; how often have you purchased a product — even a product you love — and then totally forgotten about the brand afterwards?
With the right deployment of remarketing services, you can keep your brand top of mind for your customers. You can introduce new products that they will benefit from, and you can achieve increased revenue from these customers moving forward.
While remarketing is generally about direct revenue increases, it is also about playing the long game. There is an assumption that customers find ads annoying and intrusive, and this is true to an extent, but they can, in fact, support better customer relationships. With the right remarketing campaign, you are delivering customers the ads that they really want to see — ads for products and services that they are already engaged with.
This is why you need to be working with reliable data whenever you remarket. With the engage™ platform, we aim to put data and insight into the hands of businesses so they can get to know their customers better and then put this knowledge into action. In order to successfully navigate the delicate balancing act of showing customers what they want to see, rather than irrelevant ad content.
Putting your customers first is a good strategy for remarketing. Think about how you can support them with the products they really need, and your revenue growth will reflect this.
You can focus your remarketing efforts in different ways. For instance, you may decide to opt for a more general approach to try to energize churned customers. This may involve targeting brand awareness ads at leads who have visited your website and then left without making a purchase. It can be highly effective on a broad scale.
Alternatively, you may opt to deliver specific product ads to customers who have already made a purchase or who have abandoned their carts. This needs to be a more targeted strategy but can increase your revenue if you are working with the right data.
This means you have a bit of flexibility when it comes to remarketing. You will be able to consider your options as you develop your future strategies.
Ads are not free. You need to spend money in order to develop and deploy them, which means you need to be aware of both ad spend and ad return. As discussed above, you are connecting with warm leads when you are remarketing, which means you should be able to achieve more with less investment,
engage™ can help you here too. Deriving insight from the engage™ platform can help you hone your audience segments, which will enable better targeting in your remarketing campaign strategies. You will be able to learn more about how customers are reacting to your products and identify items that are frequently paired together, allowing you to select product targets for remarketing.
At the end of the day, remarketing is a great asset to your business, but only if used correctly. This means using the right data to make remarketing work. Reach out to our team to discover more about this, and to request a free demo and test drive of the engage™ platform.