If you run your business online, you know the critical role advertising plays in driving visitors and potential customers to your website.
However, one thing you may not know is that most people who visit your website for the first time aren’t ready to make a purchase.
They may have some interest in what you’re selling, but they aren’t ready to convert just yet. This means that when they leave your site, you may never see them again. Unless, of course, you do something to bring them back.
Retargeting is one of the most powerful tools you can use to remind such customers of all the great products or services you have on offer and guide them back to your site when they’re ready to buy.
We’ll talk more about what retargeting is and then give reasons why it’s important in digital marketing. Let’s jump right in.
What is Retargeting?
Retargeting is a digital marketing strategy whereby users who have visited your website and left without making a purchase are shown relevant ads on social media platforms or other websites they go to help keep your brand on top of their minds.
Showing people ads for products or services they’ve already seen on your website and ignored may seem like the worst idea to increase your conversions, but it’s not.
It’s human nature for people to like something the more they see it. This means that the more your visitors and prospects see your retargeting ads, the more they’ll be familiar with your brand, products, and services, and the higher the likelihood that they’ll convert.
Retargeting campaigns can be done using Google Ads, LinkedIn Ads, Facebook retargeting campaigns, and so on.
10 Reasons Why Retargeting is Important in Digital Marketing
Here are 10 reasons you need to incorporate retargeting into your digital marketing strategy.
1. Increases Your Brand Awareness
Most people don’t do business with brands they know nothing about. That’s why a majority of your visitors leave without purchasing their first visit to your website.
Luckily, displaying retargeting ads to such website visitors and prospects can make them more aware of your brand, thereby increasing the likelihood that they’ll buy from you in the future.
2. It’s Cost-Effective
Retargeting is also cost-effective when compared to other advertising forms.
Instead of spending so much money advertising to prospects all over the internet, retargeting allows you to display relevant ads only to those who are already interested in your brand, products, and services, which is cost-effective in the long run.
3. Increases Your Customer Lifetime Value
Customer Lifetime Value (CLV) is the total income you can expect to earn from one customer throughout their relationship with your business.
Displaying retargeting ads to website visitors who have left your website without buying reminds them of all the great stuff you have in your store, keeping your brand on top of their minds.
When they’re finally ready to buy, they will think of your brand first and come back to your site. And as each customer buys more products and services from your business, their CLV will also increase.
4. Increases Your Conversion Rate
Your conversion rate is also likely to increase when you incorporate retargeting into your overall marketing strategy.
Why? Because you’re advertising to people who’ve already expressed interest in your brand, products, and services. So, their chances of converting into customers are higher. However, before you bring your customers back, make sure you optimize your landing page for maximum conversions.
5. Reduces Shopping Cart Abandonment
Cart abandonment occurs when online shoppers start the checkout process by adding items to the shopping cart but leave without completing their purchase.
Some of the common reasons shoppers abandon their carts include limited shipping options, time-consuming and complicated checkout process, unexpected costs during checkout (taxes, shipping fees, etc.), forced account creation, and security concerns.
Displaying retargeting ads to shoppers who’ve abandoned their carts helps to remind them that the products they wanted to buy (but changed their minds) are still available in your store.
The more they see your retargeting ads on other websites and social media platforms they visit, the more they’ll feel the need to return to your site and complete their purchases. This makes retargeting a powerful tool for reducing shopping cart abandonment. Alternatively, you can polish your abandoned cart email subject lines to bring back your customer.
6. Encourages Prospects to Complete the Buyer’s Journey
Retargeting can also help to encourage prospects who are at the 2nd stage of the buyer’s journey (consideration stage) to move to the 3rd stage (decision stage) and eventually make a purchase.
For instance, you can use retargeting ads to invite prospects at the consideration stage who have downloaded your e-book to try your product or service for free.
When they use your free product and see that it’s solving their problem, it will encourage them to do business with your brand (instead of your competitors).
7. Reduces Customer Churn
Customer churn, or attrition, occurs when customers stop buying products or services from your company over time.
This can be caused by selling a poor-quality product or service, offering bad customer service, targeting the wrong audience, and not providing enough value, among others.
Retargeting ads are an effective tool you can use to reach out to customers who’ve stopped doing business with you to remind them of all the great stuff in your store that they’re missing.
Seeing your ads wherever they go on the internet will encourage them to return to your site to buy their favorite products. This will go a long way in reducing your churn rate and boosting customer retention.
8. Great for Launching New Products into the Market
The people who’ve visited your website and left without buying anything can be an excellent audience to target when you’re launching a new product or service into the market.
This is because they’ve shown some interest in your brand and products before, so it’s much easier to attract their attention using retargeting ads and get them to visit your website to check out your new product collections.
When they see something nice that they need, and they have the money for it, they’ll make a purchase.
9. Effective for Promoting Your Best-Selling Products
You can also use retargeting ads to promote the best-selling products in your store.
When prospective customers see ads for products that your current customers love buying, it can persuade them to click through to your website and buy them as well.
This means more sales and profits for you, and a higher return on investment for your ads.
10. Helps to Showcase Slow-Moving Goods to Prospects
Lastly, having slow-moving goods in your warehouse is part of doing business. But, instead of letting them continue to occupy space, you can use retargeting ads to showcase them to the numerous prospects online who may be interested in buying them.
Whoever sees your ads and is interested in your goods will definitely come to your site to make a purchase.
Final Word
To conclude, retargeting remains one of the most effective marketing strategies for reconnecting with website visitors who left without buying and keeping your brand name on top of their minds.
When used alongside other marketing channels, retargeting can help to increase your brand awareness, increase your conversion rate, increase your customer lifetime value, and so much more.
So, if you haven’t given retargeting much thought before, the time to invest in it is now. Your business will gain so much by doing so.