Crafting An Effective Retargeting Strategy For 2024

It is one of the most powerful tools in the e-commerce marketer's playbook. Every business dreams of turning casual browsers into loyal customers; retargeting makes that dream a reality. This is how delivering tailored ads to potential buyers who've already shown interest in your brand can increase conversions, build brand loyalty, and maximise your ROI.

However, technology keeps evolving, and consumer behaviour is changing; therefore, there would be more than the success in 2023 that would be required for the following year, 2024. This final guide will build a winning retargeting strategy that will help support the success of any e-commerce business in the next year. Choosing the audience to measure your campaign is your one-stop shop for winning at retargeting.

Why Retargeting is Critical for E-commerce?

The truth is that most people who visit an e-commerce store do not convert the first time. You know that 97% of visitors leave without making a purchase, but retargeting gives you a second bite at the apple. After all, retargeted customers are 70% more likely to convert than a cold lead.

Thus, in addition to brand recognition and trusting the brand over multiple touches, retargeting helps recover lost sales. Whether it is a small retailer looking to boost holiday sales or a marketing manager with aspirations to improve funnel performances, retargeting today is invaluable in modern e-commerce marketing.

What is Retargeting and How Does it Work? 

At its core, retargeting is an advertising tactic designed to re-engage users who have previously interacted with your website. Here's a simplified breakdown of how it works:

• Set Up Tracking – A small JavaScript code, often called a pixel, is added to your website. Platforms like Google Ads and Facebook Pixel make this easy.
• Capture Data – The pixel captures the users' behaviour, for example, which pages they view, like the home page, product pages, or abandoned carts. 
• Segment Users- The retargeting platforms segment the users based on their behaviour. For example, one set might be of visitors who abandoned items in their car, while another could be of visitors who browsed but did not add anything to the cart.
• Deliver Targeted Ads – For each of these segments, targeted ads are delivered to users throughout Instagram, YouTube, and every other webpage they browse.
  It is a simple concept yet quite effective to remind the user of what he or she likes and nudge him to come back to finish the shopping.

Understanding Your Audience 

Great retargeting starts with real insight into the target audience. Not all site visitors are created equal, and they will perform poorly if categorised into just one general audience. Instead, analyse data defining such key behaviours to segment your audience.

Key Segments to Note

Cart Abandoners: Customers who have placed items in their cart but still need to complete the checkout process.
Product Viewers: Visitors who visited specific product pages but have yet to do anything more.
Returning visitors: Customers who bought earlier but did not buy during the last 3–6 months.

Tools for Analyzing Audience Data 

Platforms like Google Analytics, Facebook Audience Insights, and HubSpot CRM offer information on who interacts with your site and how. Use these insights to develop descriptive audience personas and customise your retargeting strategy.

Crafting Compelling Retargeting Messages 

The success of a retargeting campaign depends on the delivery of personalised, attention-grabbing messages that your audience cannot ignore. Here's how to do it effectively:

Focus on the customer journey

Cart Abandoners: A discount with an expiration date and free shipping will persuade the clicker to complete the order.
For Product Viewers: Use messaging that encourages related products or features glowing reviews of the item(s) they have viewed.
For Loyalty Program Members: Share loyalty program offers, exclusive deals, or new arrivals that suit them.
Creative Tips 
Visuals Matter: High-quality images of the viewed or abandoned products. Retargeting ads can even show the precise item that a user left behind.
Urgency Works: Phrases like "Only two left in stock!" or "Sale ends tomorrow!" help create FOMO (fear of missing out).
Use social proof for customer reviews, testimonials, and user-generated content also to elicit trust.

Choosing the Right Platforms for Retargeting 

Only some platforms are ideal for your brand or audience. The key is understanding where your target customers spend most of their time.

Top Platforms to Consider 

• Google Ads Display Network – Reaches millions of websites, allowing you to retarget across the web.
• Facebook and Instagram Ads – Great fit for highly visual campaigns and targeting very highly engaged audiences.
• YouTube Ads – Very good at using video content to re-engage users with your products.
• TikTok Ads - Ideal for targeting Gen Z and Millennials through creative, short-form content.
• Email Retargeting – Using Klaviyo or Mailchimp or similar tools integrated to send reminders in personalised emails.

The Power of Dynamic Retargeting 

Dynamic retargeting takes personalisation to the next level because ads displayed on another website show the same products that individuals have viewed or put into their shopping cart before, such as:

A customer viewing a blue cardigan will now see ads with that same cardigan in all available colours.
A person who viewed several products without purchasing will be displayed a carousel ad with all the products they have recently viewed.
Platforms such as Google Ads Dynamic Remarketing and Facebook Dynamic Ads work for you, as they automatically tailor ads based on user behaviour.

Measuring Success with Key Metrics 

Once your campaign is live, it’s essential to monitor its performance. Focusing on the right metrics will help you identify what’s working and where to improve.

Core Metrics to Track 

• Conversion Rate: Are users converted into the desired result (purchase, signup, etc.)?
• Click-through rate (CTR): Is the ad interesting enough to be clicked?
• Cost Per Conversion (CPC): This is the cost of getting one conversion through your retargeting campaign.
• Return On Ad Spend (ROAS): Return on advertisement spend is the revenue generated for each dollar spent on advertisements.

Real-world Success Stories 

Here are two good examples of retargeting excellence among businesses:

• Shopify Retailer Success: An online apparel retailer using Facebook's Dynamic Ads re-engaged cart abandoners, and within 60 days, they saw a 30% increase in ROAS.
• Tech E-commerce: A gadget store uses email retargeting to remind customers of discounts on abandoned products and recovered 25 per cent of lost sales in the first quarter.

Optimising Your Retargeting Campaign for 2024 

• Leverage AI Technology: Tools like AdRoll and Criteo use AI to refine targeting further and maximise ad spend.
• A/B Test Your Ads: Try different formats, messages, and visuals to see what works best for your audience.
• Focus on Mobile Users: As mobile traffic increases, ensure your retargeting ads and landing pages are mobile-friendly.
• Expand Your Range: Use retargeting for sales and promoting your blog content, free trials, or app downloads.

Looking Ahead: Retargeting in 2024 and Beyond 

Retargeting is no longer a luxury but a necessity for any e-commerce business that takes staying ahead in the game seriously. With greater reliance on AI, better data collection tools, and more innovative platforms, 2024 offers immense opportunities to refine your approach.

The e-commerce space will only continue to become increasingly competitive. Great products will get you noticed, but the hard retargeting converts initial interest into long-term loyalty.

Want to know how to take your e-commerce game to the next level in 2024? Start to change your retargeting strategy today.