Retargeting is the process of showing ads to people who have already visited certain pages of your website, have watched a video, subscribed to your newsletter or bought something in the past.
There’s more forms of retargeting, but those are the most common scenarios where retargeting can be applied in your business.
The most common of all is retargeting users who abandoned the cart.
With the help of retargeting you can remind your abandoning visitors to return to the cart and complete the purchase. Since these visitors are already educated about your product and are interested in buying it, retargeting ads can help you effectively recover abandoned carts.
So when does it make sense to use retargeting?
Personally, I only use retargeting for products that get a lot of traffic (a couple thousand visits in a few days). But even if you have a low volume store, retargeting can help you increase your sales.
Let’s look at this example:
If you drive 10,000 visitors to your product page with Facebook ads, most of them will bounce or abandon the cart and not buy from you.
The best conversion rate I ever had was around 25%
But even with a 25% conversion rate it means from your 10,000 visitors only 2,500 people bought. Everyone else left the product page or abandoned the cart and didn’t follow through with the checkout.
It’s much more likely that you’ll have a conversion rate of 1-10% by the way. This means 90-99% of your visitors will not purchase.
After all you’ve already paid Facebook money to send a visitor to your product page. The person is obviously interested or intrigued, so it makes sense to follow up with a retargeting campaign and remind the person to head back to the product page and finish the checkout.
In my experience, retargeting ads have some of the highest click-to-conversion ratios you’ll ever see. Which at the same time should result in some of the lowest cost per purchases you’ll ever seen.
If you aren’t using retargeting in your business yet, I definitively recommend you look into it and learn about it as soon as possible.
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