How Retargeting Can Bring Back Lost Customer

Every digital marketer knows the frustration of potential customers visiting their website, interacting with products, and then leaving without making a purchase. Studies show that 97% of visitors leave a website without converting on their first visit. But all hope isn’t lost. With the help of retargeting, businesses can re-engage these visitors and turn them into loyal customers.

Retargeting (also known as remarketing) is a powerful digital marketing strategy that allows you to display targeted ads to users who have previously visited your website or interacted with your brand. By keeping your products and services top-of-mind, retargeting helps bring back lost customers, improving conversion rates and boosting revenue.

In this blog, we’ll explore how retargeting works, why it’s effective, and how you can use it to bring back lost customers and increase your bottom line.

What is Retargeting?

Retargeting is a marketing tactic that displays personalized ads to individuals who have interacted with your website but didn’t complete a desired action—such as making a purchase, filling out a form, or signing up for a newsletter. It works by using browser cookies or pixel tracking to follow users across the web and serve them relevant ads based on their prior engagement with your brand.

Types of Retargeting

There are several types of retargeting strategies that businesses can use to bring back lost customers:

1. Pixel-Based Retargeting:
   • Tracks website visitors using cookies. When someone visits your website, a pixel (a small piece of code) tracks their actions and displays retargeting ads as they browse other websites.
2. List-Based Retargeting:
   • Uses existing customer data (like email addresses) to target users with personalized ads based on their previous engagement. Typically used for email retargeting campaigns.
3. Search Retargeting:
   • Focuses on users who have searched for specific keywords but haven’t yet interacted with your website. Search retargeting shows ads to these users based on their search queries.
4. Social Media Retargeting:
   • Utilizes platforms like Facebook, Instagram, and LinkedIn to retarget users based on their social media engagement with your brand.

Why Retargeting is Effective

Retargeting works because it targets warm leads—users who have already shown interest in your products or services. By staying in front of them with relevant ads, you increase the likelihood that they’ll return to your site and convert.

Key Benefits of Retargeting:

1. Increases Brand Recall: Repeated exposure to your brand reminds users of your products, making them more likely to return and complete a purchase.
2. Improves Conversion Rates: Retargeted ads are more likely to convert because they target people already familiar with your brand.
3. Cost-Effective: Retargeting focuses on users who have shown interest, meaning you’re spending your ad budget on people more likely to convert.
4. Enhances Personalization: Personalized ads based on user behavior make your ads more relevant and engaging.

The Remarketing Funnel

Retargeting works at different stages of the marketing funnel to re-engage potential customers and guide them toward a purchase. Below is a breakdown of the remarketing funnel and how retargeting can impact each stage:

How Retargeting Can Bring Back Lost Customers

1. Segmenting Your Audience for Effective Retargeting

To make retargeting campaigns effective, it’s important to segment your audience based on their behavior on your website. Different segments will require different messaging to bring them back. For example:

• Abandoned Cart Shoppers: These are visitors who placed items in their shopping cart but left before completing the purchase. Serving them ads with a reminder or an incentive, like a discount or free shipping, can help them finalize the purchase.
• Product Page Visitors: These visitors spent time browsing specific product pages. Retargeting them with ads showing the product they viewed or similar items can encourage them to come back.
• Past Purchasers: If a customer has already made a purchase, retargeting them with complementary products or special loyalty discounts can increase repeat sales.

2. Using Personalized Ads to Boost Conversions

Personalization is key to any successful retargeting campaign. The more relevant your ads are, the more likely users will click on them and return to your website. Personalization in retargeting can include:

• Dynamic Product Ads: Show users ads featuring the exact products they viewed on your site. This reminds them of their interest and prompts them to return to complete the purchase.
• Behavior-Based Messaging: Tailor your ads based on how far users got in the conversion process. For instance, someone who viewed a product page but didn’t add to cart may respond to a different ad than someone who abandoned their cart.
• Customized Offers: Offering a personalized discount or promotion (such as “10% off on your next purchase”) can entice users to return and convert.

3. Optimizing Ad Frequency for Maximum Impact

While it’s important to stay top-of-mind, you don’t want to overwhelm users with too many retargeting ads. If users see the same ad over and over again, they may become annoyed and develop negative feelings toward your brand.

To avoid this, set a frequency cap on your ads. A good rule of thumb is to limit your retargeting ads to between 5-7 impressions per user over a specific period. This way, you can effectively remind users of your brand without appearing too pushy.

4. Retargeting Across Multiple Channels

For best results, you should retarget customers across multiple platforms. The most common channels for retargeting include:

• Display Ads: These ads appear on websites within the Google Display Network and other ad networks, following users as they browse.
• Social Media Ads: Platforms like Facebook, Instagram, and LinkedIn allow you to retarget users based on their interactions with your website or social media profiles.
• Email Retargeting: Send personalized emails to users who abandoned their carts or browsed specific product pages. Emails have high open and click-through rates when used for retargeting.
• Video Retargeting: Show video ads on platforms like YouTube or other streaming services to re-engage customers who previously visited your site.

5. Abandoned Cart Retargeting: Winning Back Potential Buyers

One of the most effective uses of retargeting is to recover abandoned carts. According to research, 69.57% of online shopping carts are abandoned. By retargeting these users, you can significantly increase conversions.

Abandoned Cart Retargeting Best Practices:

• Send Timely Reminders: Serve ads or emails shortly after a cart is abandoned (within 24-48 hours) to keep the product fresh in the user’s mind.
• Offer Incentives: Entice users to complete their purchase by offering a discount, free shipping, or a special promotion.
• Create Urgency: Include time-sensitive messaging, such as “Limited stock available” or “Sale ends in 24 hours,” to encourage immediate action.

Retargeting Best Practices

To ensure your retargeting campaigns bring back lost customers, follow these best practices:

• Segment Your Audience: Customize your retargeting ads based on where users dropped off in the sales funnel.
• Use Engaging, Personalized Ads: Tailor your messaging to reflect each user’s interests and interactions with your brand.
• Cap Your Ad Frequency: Set frequency caps to avoid overexposing users to the same ad multiple times.
• Test and Optimize: Continuously test different ad variations, messaging, and offers to see what works best for your audience.
• Utilize Multiple Channels: Retarget users across display networks, social media, email, and video platforms for comprehensive coverage.

Retargeting Campaign Example Table

Conclusion

Retargeting is a powerful tool that allows businesses to bring back lost customers, improve conversion rates, and maximize the value of their marketing efforts. By targeting warm leads—those who have already shown interest in your products or services—you can stay top-of-mind and guide them back to your website.

With segmentation, personalized ads, cross-channel strategies, and abandoned cart retargeting, you can re-engage users who left your site and turn them into paying customers. Implementing these retargeting strategies will help you increase ROI, drive more sales, and build long-term customer relationships.

FAQs

1. What is retargeting in digital marketing?
   Retargeting is a strategy that shows ads to people who have already interacted with your brand but didn’t convert, aiming to bring them back to complete the desired action.
2. How does pixel-based retargeting work?
   Pixel-based retargeting uses cookies to track visitors to your website and then displays ads to them as they browse other websites.
3. Why is retargeting important?
   Retargeting helps improve conversion rates by targeting warm leads—those who have already shown interest in your products or services—thus boosting your chances of converting them into customers.
4. What platforms can I use for retargeting?
   You can use display ads, social media platforms (Facebook, Instagram, LinkedIn), email retargeting, and even video platforms like YouTube for retargeting.
5. How can I improve my retargeting ads?
   To improve retargeting ads, focus on segmenting your audience, personalizing the ads based on behavior, offering incentives, and capping ad frequency to avoid overexposure.