Every marketer tries to increase conversion rates. Those who see minimal results, typically focus on minor tweaks like moving page elements around or optimizing forms. As WordStream founder Larry Kim notes, however:
"Both large and small optimizations can make a difference, but in my experience, it's the radical optimization changes that have the highest potential to earn you more conversions. If you want to be part of the top 5-10% getting unbelievably high conversion rates, you have to be willing to try some crazy and sometimes counterintuitive things. You might find they pay off in a big way."
Remarketing: Potentially the Game Changer You've Been Seeking
According to Kim, remarketing can be that game changer for your business. Remarketing is a way of displaying relevant banner ads on other websites to prospects who've visited your site. For example, if you visit a Walmart product page, you might see a display ad for that product on another website – a kind of reminder of your interest and incentive to return to Walmart's site, and to buy.
Remarketing, if effectively leveraged, can be extremely effective, increasing brand exposure, enabling more precise targeting, increasing Return on Investment (ROI) and boosting conversions, but marketers have only recently begun to understand its power. Consider these metrics from HubSpot:
• 90 percent of marketers in a recent survey said remarketing was as or more effective than email and other display advertising.
• Remarketers reach 84 percent of their target audience on Facebook and Twitter, on average in 10-18 days.
• Remarketing gives marketers access to more than 90% of sites on the web.
How to Maximize Remarketing Effectiveness
Of course, some remarketers are far more successful than others. Those who achieve the highest conversions and sales tend to follow a set of common best practices, including the following 4:
1. Leverage Dynamic Product Ads
According to Econsultancy, dynamic products ads (DPAs) are the principal reason marketing spend on social media ads jumped by almost 90 percent in 2016, and with good reason: DPAs are among the best way for e-commerce sites with a large number of products to boost both conversions and sales.
DPAs are most effective when marketers target them to people who've viewed products on their websites, then segment them based on products viewed (and similar products), as well as on their likes, interests and demographic profile. One way to achieve segmentation granularity is with Facebook Pixel, which tracks products viewed, added to shopping carts or purchased. With this data, marketers can create highly personalized Facebook ads that achieve high click-through rates, on average twice as high as the average for social sites.
2. Segment Your Market
Remarketing is effective, but like any marketing strategy, you need to ensure you're spending marketing dollars prudently. You can do that by bidding more aggressively on those leads who are most likely to convert.
Certainly, you'll want to prioritize site visitors who have added products to your shopping cart but not converted, but there are other tactics you can employ to push conversions further. For example, you'll want to segment based on the amount of time spent on your site, product category pages, and whether a visitor initiated your checkout page.
You should also consider creating a series of sequential messages with different ad creatives. There's little point in showing a prospect the same ad repeatedly. Rather, each new ad should be informed by those which preceded it, perhaps providing copy which removes perceived barriers to purchase, or offers additional incentives.
3. Offer Incentives
People abandon your shopping cart for several reasons. Some look for the exit door because e-commerce marketers force them to create an account before they buy. For others, it's unexpected costs, typically those for shipping and taxes, that don't show up until they see the checkout page. Still others simply get distracted.
You can convince these people to return to your site and complete their purchase by offering incentives that address these concerns. One of the best ways is offering coupons and discounts that reduce price (perhaps approximately covering shipping costs).
You can also incentivize the process by making it less complex – for example, if you as a rule require buyers to create accounts, you could allow those who abandon your cart to make a first purchase without completing this step. In addition to increasing sales, these and similar incentives create brand loyalty, persuading these customers that you've created these offers just for them.
4. Get Back to Basics: Provide Educational Content to Build Trust
Most marketers understand that inbound marketing is all about building trust with content that provides useful, relevant content that helps consumers make decisions and solve their problems. Many relegate such educational content to the top of the funnel. It can, however, be equally effective in jump starting your remarketing campaigns.
An effective strategy is to send informative content (about your business, your products and consumer problems) to traffic that has bounced off your site. You can, for example, direct these potential customers to landing pages that are underperforming. This won't produce immediate sales, but it will increase brand awareness, nurture leads that might otherwise be lost and over time convert them into loyal customers.
According to CMO, remarketing can boost ad response rates by up to 400 percent, and visitors to your website who see remarketing ads are 70 percent more likely to convert. The fact that remarketing is still in its infancy means that opportunities abound for forward-leaning marketers who leverage best practice strategies to take full advantage of its benefits.
Bonus: Check out 10 Smart Tactics for Guaranteed Success with Remarketing