Retargeting Advertising: What It Is and How It Works

In the context of rapidly growing internet competition and growing consumers’ inattention, retargeting advertising has become one of the most effective tools for marketers. 

This approach helps businesses reach potential customers. It works for those who have shown interest in certain business products and services but have not completed the purchasing process. 

As technology advances, you can implement automated remarketing. It leverages chatbots and messaging apps to send automated email campaigns, personalized notifications, or even follow-up messages. Let’s know more about it. 

What is Retargeting Advertising?

Retargeting advertising or remarketing is an effective digital marketing strategy. You can send custom messages to your targeted users who have visited your business website. 

It focused those visitors on the brand’s mobile application who interacted with your website or mobile app in some way, did some actions but failed to make a purchase, or filled out a form. 

You can use retargeting ads platforms to reconnect with your past visitors and increase sales conversions. The most notable retargeting vendors are Google Ads (formerly Google AdWords), Facebook Ads, AdRoll, Criteo, and Perfect Audience. 

  • Purpose And Goals Of Retargeting Campaigns

You might want to know what a remarketing campaign is. This approach works by marketing ‘warm’ leads through ads every time they revisit other online platforms. 

Additionally, it is an attempt to reignite their interest and lead them through the conversion funnel. 

The primary objective of retargeting campaigns is to help marketers achieve higher conversion rates by targeting potential customers who have already shown previous intent towards the brand and its commodities.

  • How Does Retargeting Work?

Retargeting works on a well-structured process involving using cookies and pixels to track user activity.

User Behavior Tracking with Cookies and Pixels

Whenever a user comes to a website, a tracking code known as a pixel is installed in the browser. This pixel follows their behaviors, including pages they have viewed, items they have seen, or things they have done (like adding items to a cart).

Delivering Personalized Ads

Therefore, when the user moves away from the website and navigates to other websites or social media pages, retargeting platforms can show ads relevant to their previous actions.

Are Remarketing & Retargeting Same?

Remarketing and retargeting are very different in nature, so you need to be very particular about your campaigns. 

Remarketing engages everyone who visits your website or makes a purchase. On the other hand, retargeting approaches clients based on cookies for their specific search. 

However, retargeting displays ads to customers who visit your website and show interest in a product but do not make a purchase and abandon their shopping carts. 

It does not only familiarize the public with the brand but also puts pressure on the fence-sitters to make that purchase. Hence, get your brand an increase in sales and customer base. 

Retargeting advertising fills the gap between interest and action in the customer journey and generates tangible results for organizations.

What Are the Types of Retargeting Strategies?

There are two types of retargeting strategies: pixel-based and list-based. 

Pixel-Based Retargeting

Pixel-based retargeting deals with tracking users through pixels, which are basically snippets of code placed on sites. 

These pixels follow the activities of the user, like page views, product views, or if they abandoned their carts. 

Whenever a user performs these actions, the pixel calls the retargeting platform to show the user relevant ads on the websites or social media platforms they browse next. 

This method is more effective in targeting advertisements based on specific user activities since the probability of conversion is higher in such cases.

Google Ads Remarketing

Taps into Google display network to target users with ads based on their behaviours on Google and other related sites.

Facebook Pixel

Analyzes user activities on Facebook and Instagram and allows advertisers to target a user based on their activities on these two platforms. Then, you can outline an exclusive plan for FB retargeting ads. You need to optimize your strategy for retargeting Instagram ads. 

B. List-Based Retargeting

The following method is list-based retargeting, which involves retargeting other users without considering their website activity. 

Advertisers upload lists containing email addresses or phone numbers collected from their previous customers or leads. 

These lists are then matched with user databases on the retargeting platform, and the ads are displayed to the users across the internet.

Application in advertising

Retargeting with a list ensures that specific known leads or customers are advertised, regardless of their online activities. This technique is perfect for maintaining relationships with existing clients and ensuring that they continue to buy or use a company’s products or services.

Its Advantages and limitations

List-based retargeting provides high levels of targeting of specific users, which makes it very relevant and can even increase conversion rates. However, it has to pull user information from its database, which may not even be seen by users who have yet to use the brand. Different from pixel-based retargeting, which tracks users continually, this retargeting is less dynamic and only as good as the uploaded input lists.

What Are the Benefits of Retargeting Advertising

The benefits of retargeting advertising are as follows:

Increased Conversion Rates

Retargeting allows users who have already shown interest in your products and services to return and choose your offers, enhancing the conversion rate.

Enhanced Brand Recall

This way, retargeting always brings your brand back into the limelight of users across various platforms, strengthening brand recall.

Targeted Advertising

You can also use users’ click history to target advertising to specific users. This customized approach makes the ads more likely to appeal to users.

Cost-Effective

Retargeting typically offers much better ROI than other advertising approaches because it targets users who’ve interacted with your brand before.

Improved ROI

Higher conversion rates and low consumer acquisition rates make retargeting services more profitable than display advertisements.

Cross-Selling and Upselling Opportunities

You can implement retargeting marketing for cross-selling and upselling. You can show ads for complementary products or premium products through retargeting advertising.  

Personalization

You can tailor your PPC ads based on user behaviors, interests, and related options and demographics, which makes them more suitable for conversions.

Customer Engagement

Retargeting advertising helps maintain a relationship with users even after they have exited the site and encourages them to return.

Flexible Campaign Management

Like most online advertising tools, retargeting platforms provide some level of campaign freedom. You can set your campaign, including bids, creatives, and targeting criteria, based on specific metrics fetched from the platform.

Measurable Results

Retargeting, by definition, is concerned with targeting users who have previously interacted with the website. Therefore, it helps gather extensive data and stats on the users and the campaigns.

Common Challenges Brands Face in Retargeting Advertising

Retargeting advertising comes with many challenges and considerations for digital marketers. 

  •  Ad Fatigue and Over exposure

Ads have a great impact on user experiences. If ad retargeting is overdone, users get annoyed or simply ‘blind’ to the ads because they are made to see them so frequently. 

It can negatively impact the success of the campaign because users can avoid the advertisements and or develop a negative perception of the brand.

Strategies to Mitigate Ad Fatigue

Here are some effective strategies to deal with ad fatigue in retargeting campaigns.

  • Frequency Capping

Do not retarget a specific user too frequently, as they will get tired of seeing those ads over a given period.

  • Rotate Ad Creatives

Frequency of ad creatives and messages to avoid user boredom while using the Application.

  • Segmentation and Personalization

Use behavioral and interest-targeting aspects to post relevant adverts or promotions.

  •  Privacy and Laws

GDPR and CCPA Implications are the most concerning aspects you must consider. For instance, the General Data Protection Regulation in the European Union and the California Consumer Privacy Act in the United States contain stringent rules and regulations regarding the collection, storage, and usage of client data. Brands should adhere to these rules so that they will not be penalized in law and to maintain the credibility of consumers.

Best Practices for Ethical Retargeting Practices

  • Transparency

Ensure transparency when explaining how to collect and use data in retargeting ads.

  • Opt-Out Options

Allow the users to have convenient ways to opt out of the retargeting ads if they wish.

  • Anonymization

You need to mix data with other users to keep the information anonymous. This will help you maintain privacy for the respective users while ensuring appropriate targeting.

  • Regular Audits and Updates

Always insist on the latest trends and standards set by the law regarding return marketing so that a business does not violate the law.

To overcome such issues, brands must focus on the right approach to advertising while avoiding interference with the consumer’s privacy and choice.

How to Engage and Retain Customers with Email Marketing?

Digital platforms are bombarded with information, content, and visual media. This exposure makes it difficult for brands to get noticed and remembered by potential customers.

At that time, email marketing became a significant and effective tool. Email marketing in digital marketing takes your brand message right into your customer’s inbox. It is like one-on-one services that make your customers feel valued with a truly personalized experience.

In this blog, we will discuss innovative strategies for effectively engaging and retaining customers through email marketing.

Let’s find out!

What is Email Marketing?

Email marketing is part of a digital marketing strategy that sends targeted emails to potential and existing customers.

An email marketing campaign increases brand awareness for potential or new customers and informs them about products and services.

Conversely, email marketing can help you retain customers by sending them promo codes, discounts, and other offers.

Moreover, brands leverage email marketing to update customers about newly launched products, deals and eventually build customer loyalty over time.

Your email marketing strategy must be well-thought-out and versatile. It can be used for newsletters, promotional offers, and transactional messages. Additionally, you can send your customers personalized recommendations based on their preferences.

Let’s learn more about retention emails, which are a crucial aspect of the email marketing process. Moreover, they keep your customers engaged and coming back for more.

What Are Retention Emails?

Retention emails are email marketing that focuses on increasing retention rates. However, you need to be specific with email content for marketing. These emails aim to boost customer retention and experience by sending personalized and pertinent material to existing consumers.

The purpose of these retention emails is to connect businesses and brands with their customers while retaining existing customers. Additionally, they urge them to stay devoted to the company and make more future purchases.

Moreover, email marketing helps increase customer engagement with your business, which boosts sales. That is why it is significantly important to retain customers with email marketing.

Why Are Retention Email Marketing Important?

eCommerce email marketing serves different purposes. Retention emails, a subcategory of email marketing, work to increase client retention.

Moreover, it encourages long-term product utilization by delivering personalized content, soliciting feedback, and targeting specific consumer categories.

Additionally, a thoughtful retention email plan works to minimize client loss. You need to make email lists for marketing since the plan is to focus on developing strong, long-term customer connections. Find out the best time to send marketing emails so your messages do not go unnoticed.

Also, promote profitable growth for the company. The best way to handle it all for your brand is to sign up with an email marketing agency for expert solutions.

How Does Retention Email Works for Businesses?

Email marketing is a simple and successful approach to converting prospects into consumers using content. Branding is centered around email marketing’s phenomenal ability to attract and retain customers. Potential customers may have questions regarding the product when they become clients.

Post-Purchase Retention Strategies

You can use several strategies to attract new customers to your brand with email marketing.

However, the advanced marketing funnel focuses on the post-purchase phases to retain existing customers. Now, the game is no longer limited to converting leads into consumers. It goes beyond that.

As digital marketing advances, brands are striving to maximize the lifetime value of their loyal customers. Retention emails offer brands an effective method of providing their existing clients with a highly personalized experience.

Personalized targeting is essential for customer engagement, and the best solution is to advertise emails. Moreover, it would help if you were considerate about the best time to send a marketing email. Send your email when your target customers are not busy with work or other activities.

Personalized Engagement Drives Retention

You can keep your loyal customers longer when you make them feel valued, understand their needs, and make the buying experience more manageable. It will increase their lifetime value and boost sustainable profitability for your business. Therefore, personalized engagement is necessary to retain customers with email marketing.

The advancement in AI and big data has made it easier for businesses to learn about their target audience preferences. Depending on their exclusive choices, you can now propose comparable items to your customers.

Over 80% of Brands Use Email Marketing for Customer Retention

Email marketing or retention emails are not something to take lightly.  Their effectiveness is the real deal. Recent research shows that over 80% of businesses use email marketing to retain their customers. Another E-marketer poll reveals that over 60% of marketers believe email marketing is an efficient way to achieve client retention goals.

Let’s find out how to retain customers with effective email marketing creatively.

7 Ways to Retain Customers with Email Marketing

You now understand how vital email marketing is in pitching new customers and retaining existing ones. Here are some ways to use different types of email marketing to your advantage for retaining customers:

  • Send Personalized Messages

Retention emails should be exciting and feel like direct conversations with target customers—the chances of taking action increase when they get customized emails based on personal preferences and past purchases. Address them by their name to show that you still remember them. Moreover, you can give them references for their specific interests. It helps you build connections beyond transactions and improve their loyalty and engagement.

  • As Friendly Reminders

You can send emails as friendly reminders for various products, promos, discounts, and deals. A gentle nudge helps keep customers engaged. You can remind them about upcoming products, services, new launches, limited editions, restock inventory and special events.

  • Empower Customers

Give your customers control over choosing different products or packages. You can give them flexible plans and choices. Empowering customers is the best way to retain customers with email marketing. You need to be observant while choosing offers from them that genuinely resonate with their needs.

  • Engage Creatively

There are more benefits to email marketing than you can understand. Therefore, you need to be creative to stand out. Get out of the ordinary and create stunning messages that people eagerly look forward to reading in their inboxes. Maintain a unique way of presenting your commercial emails through stories, jokes, or quizzes. Communicating creatively through emails captures the audience’s attention. Furthermore, it builds a positive relationship to forward your messages.

  • Activity Segmentation

Classify consumers based on their actions and expressed interests in the brand. Segment or personalize their emails based on their past buying, browsing, or contact behavior. This improves customer satisfaction and creates an environment that makes it easier for customers to return for future business.

  • Re-engagement Campaigns

Create reactivation campaigns to engage old customers through meaningful messages. Their interest may have waned over time, so entice them with rebates and new gimmicks or just ask for their opinions. Such email campaigns help draw customers’ attention to why they chose your brand in the first place, urging them to revisit and interact with your brand again.

  • Feedback Surveys

Learn to use feedback as a tool to enhance customer experience. Complete and send brief, specific surveys that require a few questions to be answered. Use the results of these surveys to improve the products and services offered and the company’s communication with its clients, making it clear to them that they are valued and further solidifying their allegiance.

You can use these email options to retain your customers through email marketing. However, you need to figure out the best time of day to send a marketing email.

What Makes A Good Retention Email?

Your retention email should have the following features so you can create a message that appeals to customers to take action. Here, we enlist a few must-haves to retain customers with email marketing that can make your retention email phenomenal.

Compelling Subject Line

The subject is the first aspect that a reader notices in an email. You can get their attention with a blend of intrigue and relevance. Be as creative as you can. Think outside the box. Such as “Claim Your Exclusive Rewards Now” or “Your Feedback Matters: Win A Reward Today.

Call to Action (CTA)

A compelling CTA is critical. Make a CTS that stands out when inviting customers to view new stock, give feedback, or redeem an offer. You can use phrases like “Check this out,” “Share your opinion,” or “Claim this now.”

Personalization Touch

Create a personal connection by using the recipient’s name and customized recommendations. For example, “New Favorites to Try, Tina,” “Williams, You Win Free Shipment Today,” or “Sarah, Check Out This Exclusive Offer for You.”

Valuable Content

Add value with useful updates, special tips, or discounts that interest your client. Offer insight about new product updates, sneak peeks, or other valuable tips that align with their preferences.

Engaging Visuals

Keep your emails engaging by adding quality visuals to enhance engagement. You can use image or video format or any animated image like GIFs that focuses on products or promotion schemes in an attractive manner.

Urgency and Exclusivity

Create a sense of urgency with limited time offers or exclusive benefits to make consumers more motivated for quick action. You can add phrases like “Act Now, Limited Time Only,” “Don’t Miss Out” or “Exclusive Access Ends Soon” to call for an instant reaction.

Social Proof

Social proof is a 10X effective way to retain customers with email marketing. Establish your goodwill with customers’ testimonials and feedback about your products by adding these to your emails. Highlight positive feedback with phrases like “Here is What Most Have to Say” and “Join the growing number of satisfied customers!”

Clear Communication

Keep your messages concise and convincing. Be brief for advantages and benefits, stressing the gains and the calls for action. Make sure to keep your language simple rather than try to be simple while addressing your audience or while writing your message.

Contact and Connectivity

Connect with customers by being accessible. Add contact details, head office addresses, web links to your website, and social media pages.

Give them a do-follow link to explore a particular service or product. Interact with links to customer service or social accounts to provide an easy means for clients to contact you.

These are a few eCommerce email marketing best practices that can give your brand the boost it has always wanted.

Take Away

I hope you are ready to sail your ship on an email marketing journey. These strategies work to retain customers with email marketing when applied correctly. Moreover, it guarantees that your retention emails grab the audience’s attention and, at the same time, properly nurture them.

Are you looking for the best email marketing services? Get in touch with Globe Design Solution now! We have the best email marketers who are skilled in customer acquisition. Call now!