Absence makes the heart grow fonder, but marketers say retargeting turns strangers into buyers. Retargeting used to be cutting edge for marketers who wanted to dump prospects into the sales funnel in the hope these potential buyers might convert if repeatedly exposed to an ad.
Here’s a summation of retargeting to make sure we’re all on the same page about what it is and what it does. Retargeting inserts code on a webpage that deposits a cookie into the browser of anyone visiting. From that point on, it’s possible to use ad platform services (such as Google or Facebook) to follow these people and serve them your digital ads – with the objective that this will get prospects to either return to your website for further engagement, or to actually make a purchase.
When retargeting works
As recently as 2018, more than 40 percent of paid display ads online were in the form of retargeting ads. Marketers were looking for a way to compensate for the disappointing fact that only 2 percent of website visitors convert during their first visit.
Meanwhile, ecommerce businesses report average conversion rates of 128 percent; and the financial services industry often sees average conversion rate increases as high as 147 percent. Ecommerce juggernaut BigCommerce reports that on Facebook, visitors who see remarketing ads are 70 percent more likely to converton a website compared to those who don’t.
Clearly, retargeting is effective at a “hey, pay attention to me” approach for lead generation. The biggest benefit is the ability to act on attempting to engage someone who has expressed interest in your product or service.
“Quit following me!”
But what if that expressed interest was a mistake, or a visitor is clearly not far enough along the buyer’s journey to be a qualified lead? Retargeting can be annoying. Your prospective buyers are deciding they’ve had enough.
Traditional retargeting often ignores the customer buying cycle
What if someone has already made a purchase and is no longer in the market? Traditional retargeting follows your customers around for up to 30 days when you don’t also use methods to stop targeting customers when they have made a purchase or are no longer in the market. If you keep your retargeting window open for a long time, you increase the likelihood that you are retargeting a customer who is no longer in the right spot of the buying cycle.
For home services companies, based on our data tracking we know that the average consumer is in the buying cycle (actively searching for you) for an average of just 3.3 days. So, your retargeting has either missed them – or it’s going to annoy them for another 26 or so days. This irritates your potential customers and wastes your precious ad dollars.
If shown to the same person five times, an ad becomes annoying and intrusive. When shown 10 times, anger becomes the dominant reaction to your ads. Annoyed and angry prospects typically won’t buy from or recommend you, but they will tell 100 of their friends how annoyed they are about you. Let’s look at what happens when your ads are shown 10 times or more:
- 55% of customers put off buying
- 53% get irritated
- Only 10% buy
If poorly implemented, retargeting can be the nightmare that turns some of your best customers into enemies. It’s extremely annoying and frustrating for people who have already bought from you or decided to put off purchasing to be pestered by your retargeting ads because you or the ad platform you’ve chosen has not deployed a burn pixelor other ways to stop pestering those who convert or buy.
More than you need
Traditional retargeting is more expensive than it needs to be because you can’t exclusively target the specific person who is shopping for your services. Your retargeting ads are often being served to everyone associated with an IP address. It means you and your entire family are seeing ads for the services one person has shopped for.
As a result, traditional retargeting is legendary for driving a lot of toddlers with fumble-fingers on their iPads to home services companies. Toddlers don’t typically buy home services, either, but they do have a way of driving up your click charges and costing you more than you need to spend.
The intelligent retargeting solution
Traditional retargeting efforts have to get past the dumb parts that annoy prospects and kill lead generation. Identity Resolution with PinPoint Marketing is the answer!
With Identity Resolution, you know exactly how long each of your customers (by name) is in the market for your services. With our PinPoint Marketing, you only advertise to them while they are in the market for that average of 3.3 days. Marketing efficiency is turbocharged because you’re talking only to those people who are actively looking right now for what you sell.
Because you know exactly how long each customer is in the market for your services, you will only show them ads while they are relevant to them. When customers see ads that are relevant, they appreciate your ads and find them helpful. You stay out of that angry and annoyed zone.
You only want to reach customers who are ready to buy right now – and not family members or coworkers associated with their IP address. Retargeting makes sense, but only when correctly applied. Find out how we can help you take retargeting to a new level of effectiveness
The post Rethinking Retargeting: How to Move it to the Next Level of Effectiveness appeared first on Maverick Lead Generation.