For most brands, a high bounce rate is a source of frustration. That means you have plenty of traffic to your website, but people leave quickly. They either show little interest in your product or abandon their shopping carts before the transaction is complete.
How Remarketing Can Generate More Sales for Your Business
So, how do you deal with this phenomenon? A powerful method is remarketing. This allows you to reconnect with those visitors whose interest was piqued, but who failed to complete the purchase. Indeed there are a number of uses for remarketing, from recapturing lost sales to reinvigorating an old customer database.
There are a number of ways to remarket. In all likelihood, you have been exposed to a few during your own online activities.
Is remarketing necessary?
You might assume that remarketing is a signal that a brand has failed to develop a website or brand presence that converts effectively. But in fact, the conversion is a very difficult task and the vast majority of e-commerce sites do not turn first-time visitors into customers.
In fact, one study found that the conversion rate for first-time visitors could be as low as 2% and normally hovered at about 5%. Across industries, the cart abandonment rate was consistently over 50% and reached upwards of 70%.
In other words, remarketing should be viewed not as a plan B, but as an essential element of a comprehensive sales strategy.
How does remarketing work?
There are a number of ways you can reach out to those lost customers. Specifically, this can be through targeted advertisements or direct email. In all cases, it may require the use of certain tools such as your customer email database or, more frequently, a technology that tracks user activity on your website. Here is a sampling:
Standard remarketing. Google and its partners show an ad for your business to prior visitors to your website. This serves as an immediate reminder to those who are just getting to know your brand that they should come back and learn a little bit more about what you have to offer.
Dynamic remarketing. This also shows ads to previous visitors but focuses on the specific products or services in which they showed interest before leaving your site. This can be particularly effective, especially if the consumer still wants the product but simply got interrupted while browsing.
Customer list marketing. Google or Facebook shows ads to specific users according to a customer list you provide. You can customise this list and create an ad tailored to this custom audience. For example, you may want to reach out to previous customers who did convert but haven't come back yet for a second purchase.
Direct email. If you have ever abandoned an online purchase, you have probably received an email from the brand. It may take the form of a reminder email and may include an incentive to complete the purchase. Some brands include a discount code that the customer can apply if they choose to go back and finalize the transaction.
How do customers feel about remarketing?
Obviously, remarketing isn't favoured by all consumers. However, they are nonetheless effective. One study found that consumers are four times more likely to be encouraged by a relevant ad than discouraged if they encounter that ad during product research. Of those aged 25 to 34, 41% liked to receive a follow-up email after abandoning a cart.
So, although some consumers may not enjoy seeing the same ad again and again, remarketing is a good way to recapture those potential conversions.