Electronic commerce is one of the dominant areas of business nowadays. Online shops, marketplaces or even travel agencies or moving companies – the range of organizations that could be classified as it is broad. Thus, the competition is high and the role of marketing is becoming more and more prominent. In this article, we would like to have a more detailed insight into this and analyze a particular strategy: retargeting for e-commerce. What is it, how does it work, and should you adopt it? You can learn all of that by reading this article.
Retargeting for e-commerce: What is retargeting in the first place?
Retargeting means coming back to users who have previously engaged with your marketing materials, to incentivize them to convert. It is done in two cases:
- Target user clicked your ad, yet did not convert.
- Target user converted, became a customer, yet you want to upsell some additional products to them.
Retargeting for e-commerce means adopting this strategy and adjusting it to the reality in which electronic commerce operates. This strategy has a lot of benefits, though its effectiveness depends mostly on the type of industry that your e-commerce operates in.
Retargeting for e-commerce: The benefits
Retargeting comes with a plethora of advantages for e-commerce businesses. From financial benefits to higher customer satisfaction – let’s look at all the pros of this strategy in a bit more detail:
- Better conversion – Going back to the people who have not converted yet with a specifically personalized ads, encourages some of them to actually return to your website and make a purchase. A follow-up is much easier to perform than a whole advertising campaign, yet can truly boost your sales.
- Cheaper customer acquisition – The less you spend on acquiring new customers, the more you profit when they convert. And, you can save on customer acquisition by introducing retargeting for your e-commerce. A few extra ads for someone who has already expressed interest in your products or services can do magic and won’t cost you an arm and a leg.
- Higher customer retention – How do you keep a person on board after they already made a purchase? By retargeting. This way, your customer will remember about your brand and return to it instead of going to your competitors.
Retargeting for e-commerce: Will it work for you?
Retargeting is generally good for any e-commerce, yet there are some particular ones that absolutely need to introduce this strategy. Retail is an example of that, with some particular subgroups in this sector benefitting even further. Yet, this doesn’t mean that retargeting won’t work in other cases – it is an excellent strategy that will give your e-commerce an edge over its competitors, no matter the industry.
Final thoughts
Retargeting is a marketing strategy aiming at increasing conversion rates among those who have already engaged with your marketing materials. It is an effective way to boost sales, customer loyalty and reduce the costs of customer acquisition. Should you use it? Absolutely, especially if you are working in online retail.
