What is retargeting and why is it important for your business?

What is retargeting and why is it important for your business?

Believe it or not, selling products online is not the easiest job in the world. Sure, once you have established a considerable customer base and branded your company, things get a bit easier. Nevertheless, it is an alarming fact that out of all people who look at your website during one day, over 90% do not commit to a purchase. They show interest, but that’s as far as they go at that point. As scary as that sounds, there is a way to “lure” those people back to your website and “help” them to make a purchase. That strategy is called retargeting. If you have been wondering: “What is retargeting and why is it important for your business,” here is everything you need to know about it!

What is retargeting?

Has it ever happened to you that you visit a website, look at some products, and then just browse other websites without purchasing anything? If the answer is YES, you probably noticed many ads about those products showing on other websites. As if they are following you wherever you decide to go.

One of the fundamental rules of digital marketing is to capture your customers’ interests and keep showing them advertisements. It may sound a bit pushy, but that’s how digital marketing works. You are merely retargeting those customers, showing them ads of products or services in which they showed interest.

A tablet showing traffic data on Google.
By analyzing your traffic data, you can calculate how many people convert every month.

Is there a fine line between spamming and retargeting?

You must be thinking, how come it is a good idea to spam my customers with ads if they didn’t purchase a product? Won’t that push them away? As much as that makes sense, there is a fine line between spamming and retargeting.

Simply speaking, retargeting works in such a way that it targets only the customers who were close to making a purchase. They saw a product, maybe added it to the shopping cart, and at that point closed the browser. They may come back to it or not. It would be best if you did not leave that up to fate. Retargeting serves the purpose of reminding your clients that they were close to purchasing a product.

Why is retargeting important for your business?

As we saw in the previous section, retargeting serves the purpose of reminding your clients about the products you offer. It is one of the most efficient strategies to increase your website’s conversion rate. Remember that an average consumer visits a bunch of different websites every day. They are bombarded with advertisements from all sides, and whoever makes the most effort will win them over eventually.

If you don’t take retargeting seriously and use this strategy, you might lose potential customers. That will directly affect your ROI.With that in mind, remember that it does not matter what your niche is. You could be a car dealer, a retailer selling clothes, or a shop owner who sells electronics. Whether you belong to the hospitality industry or banking, or any other, the same applies to your business, and movers are no exception either. In fact, let’s take an average moving company as an example.

An example of retargeting

Let’s say we have a moving company A that specializes in local and long-distance relocations. Their goal is to advertise the business online. I am setting an example based on this industry because of the consequences left by the COVID-19 outbreak. Now, we have a situation where a family wants to move to a suburb because there is less exposure to the virus. They are looking for movers, and they end up visiting a local moving company. However, they are having second thoughts.

A smartphone showing different icons of social media platforms
You can display retargeting ads on social media

What happens without retargeting

If our moving company A did not use retargeting on their website, the family would probably forget they visited them. The time will pass, and once they make a decision, they could see the website of the moving company B instead.

What happens with retargeting

Now let’s look at the same example, but from a different perspective. The owner of the moving company A has decided he or she will not leave things to fate. They reached out to professionals like moversdev.com and made sure that their website is built up to the latest standards. Retargeting technology will continue to advertise moving services to the family every day, helping them remember the website they visited. When they make a decision, they will contact moving company A.

List-based retargeting

Now that we understand what retargeting is and why it is important for your business, let’s look at different retargeting types.

List-based type focuses on collecting e-mails and phone numbers of your customers. With this information, you can display your ads on social media profiles. A huge benefit of this type of retargeting is that you can customize every banner to the customer and personalize it.

Pixel-based retargeting

This approach includes installing a pixel that tracks customer visits and activities on your website. The technology then uses cookies to send banners to customers when they browse other websites.

A drawing of a laptop and a smartphone sending yellow envelopes across the world
An e-mail list of customers is all you need to do a retargeting campaign

A considerable benefit of this approach is that, if you have a lot of traffic, you can reach a wider number of visitors. However, the downside is that those people must visit your website first.

With list-based retargeting, you only need an e-mail or a phone number.

What is retargeting and why is it important for your business – answered!

Do you now understand what retargeting is and why it is important for your business? If not, give it another read and look for retargeting examples online. It can be a little tricky to understand the basics behind it, but this technology drives results and has a high percentage of efficiency. It is one of the most popular marketing strategies today, and it is only becoming more advance as time goes by. The sooner you start to use it, the better!

About Author

My name is Mukesh Jakhar and I am a Web Application Developer and Software Developer, currently living in Jaipur, India. I have a Master of Computer Application in Computer Science from JNU Jaipur University. I loves to write on technology and programming topics. Apart from this, I love to travel and enjoy the beauty of nature.

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