How do retargeting strategies boost e-commerce sales?

Retargeting strategies boost e-commerce sales by re-engaging potential customers who have previously shown interest in a product or service.

Retargeting, also known as remarketing, is a form of online advertising that allows businesses to stay connected with their audience, even after they leave their website. It works by tracking visitors to your site and then serving them ads on other websites they visit. This is particularly effective because it focuses your advertising spend on people who are already familiar with your brand and have recently demonstrated interest.

The primary goal of retargeting is to persuade the potential customer to return to the site and complete the purchase they initially showed interest in. This is achieved by constantly reminding them of the product or service they viewed, creating a sense of familiarity and relevance. This strategy is based on the principle of the 'Rule of Seven' in marketing, which suggests that a prospect needs to see or hear your marketing message at least seven times before they take action and buy from you.

Retargeting can be particularly effective in e-commerce, where shopping cart abandonment is a common issue. By retargeting these potential customers with ads for the products they left in their cart, businesses can increase the chances of converting these abandoned carts into sales.

Moreover, retargeting strategies can be tailored to the behaviour of the individual customer. For example, if a customer has been browsing a particular category of products, the retargeting ads can showcase other products in the same category. This personalised approach can make the ads more relevant and engaging, increasing the likelihood of a sale.

In addition, retargeting can also help to build brand awareness. Even if a retargeted customer does not immediately make a purchase, the repeated exposure to the brand can help to keep it at the forefront of their mind. This can be beneficial in the long term, as it increases the chances of the customer choosing that brand when they are ready to make a purchase.

In conclusion, retargeting strategies can significantly boost e-commerce sales by re-engaging potential customers, reducing cart abandonment, personalising the advertising experience, and building brand awareness.