The Value of Retargeting Customers for Your Business

97% of your website visitors leave your website before converting into a sale.

Isn’t that crazy? Well, it’s the cold hard truth.

Only 3% of the people that visit your website (and usually less) actually follow through and make a purchase from your company.

So the majority of people who were in your sales funnel at some point, aren’t anymore and they are lost to the wind…Or your competitors. More likely just lost to your competitors.

Either way, it’s not a great looking situation for your company. Why? Because it could mean you’re literally leaving 97% of your potential revenue on the table.

“But Jordan, that’s an extreme example. There’s no way I could capture all of the business and my competitors get none.”

Ok – you got me. That’s true. But it still illustrates the potential value of retargeting customers for your business.

Why? Because these are all missed opportunities that most businesses are deciding to ignore. These people are already in your sales funnel, preparing to buy. And you’re treating them like everyone else – anonymous website visitors – instead of treating them like the golden opportunities that they are.

So if you could retarget those same exact people on 6 other marketing channels for pennies on the dollar, why wouldn’t you do it?

Well, the fact is that most businesses don’t know what retargeting or omnichannel marketing is – yet. Let’s dive into what retargeting is and the value of retargeting customers for your business.

Quick Breakdown of Retargeting

There are a few terms to be aware of. Retargeting and remarketing are similar, but talking about different things.

Retargeting – The act of setting up a retargeting campaign that retargets the specific people who have already been in your sales funnel or interacted with your brand, but haven’t necessarily made a purchase yet.

Remarketing – Remarketing is typically re-engaging customers through email, although they have already made a purchase from your company.

Omnitargeting – Having your brand everywhere. This takes into account retargeting and remarketing, to make sure your brand is at the forefront of your customers (and potential customers) minds. Channels include but not limited to Facebook, Instagram, Google Ads, Display Ads, Adsense, YouTube, Gmail Ads, Direct Mailers, Amazon, and more.

Here’s a quick video overview we’ve prepared for you to understand retargeting:

Real-World Example of Retargeting

Bob got in a car accident, but it wasn’t his fault. Unfortunately for Bob, his arm was broken in the accident and he wants to seek damages to cover the hospital visits.

Now we get into the classic Buyer’s Journey or Customer Lifecycle. It goes something like this:

1. Bob Google’s for a Personal Injury Lawyer in his city.
2. He visits many law firm’s websites.
3. He sees a few ads from a couple more on the blogs he reads about what to do after an accident.

Now, which law firm do you think has the best chance at winning Bob’s business? Of course, it’s hard to tell without knowing the details of the interactions Bob had with each, but one thing is factual in the marketing world – if your brand is in more places, at all times, you are in a far better position to win the business of your potential customers.

In fact, people are 70% more likely to purchase from a company after seeing a retargeting ad from that company, than they are from one of their competitors.

*mic drop* ??

Omnitargeting is the only bit of marketing that increases the value of all other marketing you’re doing.

*double mic drop* ????

Think about that for a second. By retargeting your missed client opportunities, you’re minimizing the waste of marketing dollars you already spent to get those prospects into your sales pipeline in the first place. Which means that by retargeting those same people, you are increasing the value of all marketing done prior to that.

What Will Retargeting or Omnitargeting Do For My Business?

As previously summarized, Omnitargeting will drive actions. This is the main goal.

Have you ever heard that it takes 7 touches for a prospect to become a customer? As we experience the move into digital-only marketing channels, it’s important to understand when, how, why and where people interact with your business.

And how best to move them towards a purchase of what you sell. If you’re not in front of your ideal customers, how can you expect them to buy what you’re offering?

And by investing more advertising dollars into the channels that produce the best results, you can take control over your marketing spend and be confident that you are doing everything you can to drive the best results.

The type of reporting found in our Retargeting Case Study for Personal Injury Attorneys (watch the video on our website) is also why it’s important to partner with a marketing company that not only understands Omnitargeting, but that is also transparent about expectations, percentages, and projected campaign results.

And as you can see, retargeting can provide some very, very lucrative results.

That being said, let’s talk about some of the challenges when it comes to retargeting campaigns.

The Perceived Challenges

The challenge is that we don’t know how many interactions retargeting will drive a business as there are variables outside our control:

• Website traffic
• Landing page
• Offer
• Competition

There is then the issue of converting leads to sales and then converting sales to referrals. All of these lead us down a path of lots of assumptions. It becomes pretty darned difficult to predict. I’ve modeled it and the model is HIGHLY sensitive to all the variables above.

With the following assumptions: – 300 monthly visitors – $1k customer value – 2% website conversion rate to leads – 20% lead to sales conversion rate – 20% customer referral rate – $1k monthly fee including ad spend

I can generate annual outcomes of: – 1% recovery of non-converters to leads = $2k client profit (sales after fees) – 2% recovery of non-converters to leads = $17k client profit – 3% recovery of non-converters to leads = $31k client profit

Small changes make a big difference.

If we tweak the inquiry conversion rates or referral rates, it all changes again.

So as you can see, even a tiny business with little traffic can be profitable, but by how much is wildly variable.

Conclusion

Retargeting offers some serious opportunity to businesses not currently leveraging the technology.

And it’s true that if you’re not currently utilizing retargeting to grow your business, then you will be competing against the competitors who do utilize retargeting strategies that capture more of the market.

And just to reiterate the 2 mic drops from earlier…??

In fact, people are 70% more likely to purchase from a company after seeing a retargeting ad from that company, than they are to purchase from one of their competitors.

Omnitargeting is the only bit of marketing that increases the value of all other marketing you’re doing.

I truly hope that this article helped shed the needed light on retargeting, Omnichannel marketing, and how it can help you grow your business to new heights.

If you have any questions or comments, please feel free to drop one below or message me here on LinkedIn. I’d love to hear from you!

Thank you for reading.

Jordan Stambaugh

This article was originally published on Cloudburst Marketing.

Get in touch: [email protected]