In the finest retail stores, experienced associates know the perfect moment to approach shoppers with assistance or advice. The same is true at a gourmet restaurant, where waitstaff bring the dessert menu just as diners finish their main course.
Brands that can find a similar way to anticipate customers’ needs online get more conversions, higher revenue and earn long-term loyalty. Learn the difference between retargeting vs. remarketing and you’ll not only gain two strategic techniques to accomplish all this, but do so in a way that has you showing up for customers in the right place at the right time.
What is retargeting and remarketing, you ask? Read on for all the details you need to choose the right options and optimize your digital marketing strategy for greater results.
What is retargeting?
A retargeting campaign lets you follow up with customers whose online behavior has indicated an intent to purchase, or at least an interest in the products you’re selling.
In the early stages of the customer journey, for example, a site visitor might view some of your products online but get distracted or busy. A retargeting campaign can serve up ads on other sites they visit later, reminding them to take the next step.
Retargeting can also an effective means of engaging with customers who added an item but abandoned their shopping cart. With a special discount or even just a nudge to complete their purchase, brands can capture revenue that would otherwise be lost.
How does retargeting work?
Unlike physical store environments where employees notice what customers are doing, managing relationships through digital channels depends on data.
Retargeting campaigns begin by using data collected from tracking cookies, for example, as well as pixel tags that allow you to build target audience segments on ad platforms. This determines which shoppers will see a retargeting ad.
Brands aren’t limited to retargeting campaigns based on what shoppers do on their own sites. They can use the same technologies to analyze off-site behavior, such as likes or comments on social media platforms, or demo videos that consumers watch online.
Common Channels for Retargeting Campaigns
Consumers start a lot of their shopping journeys by keying product terms into a search engine. That makes Google one of the ideal places to run a retargeting campaign, where you’ll enjoy a prime position in the list of results your audience sees.
When they’re not browsing Google, consumers are also avid users of social platforms like Facebook and Instagram. These image-oriented services are ideal showcases for relevant ads that entice customers with products they’ve already been actively searching for online.
For the broadest reach, brands also run retargeting campaigns across display networks that extend across a variety of popular publishers. You can even aim retargeting ad campaigns at mobile apps your consumers use.
What is Remarketing?
Brands grow faster when they not only attract new customers but retain their existing base. Remarketing helps in that effort by offering ad content that gives customers a reason to re-engage and perhaps even increase the amount they spend with your brand.
How does Remarketing work?
Like retargeting, effective remarketing depends on collecting and managing quality first-party data about former customers who have churned. This data could include user names associated with customer accounts, purchase histories, loyalty program details and how they’ve engaged with previous marketing content.
Remarketing will also draw upon data customers have opted to share, such as their e-mail address, mobile phone numbers and more. This allows you to run campaigns that encourage them to come back to your brand, take advantage of an upsell offer or share additional data.
Common channels or tools for Remarketing
If customers signed up to receive your brand’s email newsletter or special promotions, it’s only natural to lean on e-mail as a remarketing channel. In the same way, some customers prefer to get real-time alerts when products they like go on sale or when new items are introduced. Remarketing can accomplish that using push notifications to customers’ smartphones.
Google search ads and display networks are also viable remarketing channels, provided you’re showing relevant content to your intended audience.
Retargeting vs Remarketing: Key Differences
The biggest difference between retargeting and remarketing is the stage you’re reaching shoppers in the customer journey.
Retargeting tends to focus on those who are actively looking at products online but who have yet to move from the “consideration” stage to placing an order and finalizing their purchase. They may have visited a brand’s website or followed its social channels, but they need additional enticements through contextually relevant ads before they feel confident about making a buying decision.
A remarketing campaign is usually aimed at those who have already become customers but who are at risk of not returning, or only on rare occasions. In their case, contextually relevant ads bring them back into the fold and help maximize their potential lifetime value (LTV).
As indicated in the previous section, remarketing also tends to favor a brand’s owned channels such as an email list of subscribed contacts or a database of mobile phone numbers. Those who are still prospects haven’t shared that kind of data yet, which makes search, social and display ads the best channels for retargeting ads.
Brands may need to draw upon different skill sets for retargeting vs. remarketing campaigns. The former depends on knowing how to use programmatic tools to bid on the right keywords, as well as data analytics capabilities to make sense of online behavior. Remarketing efforts are developed from data that sits in customer relationship management (CRM) or customer data platforms (CDPs) and other first-party tools.
When to Use Retargeting and Remarketing?
Deciding between retargeting vs. remarketing doesn’t have to be difficult. You just need to understand which approach will help you achieve your desired outcome. The following list breaks it down to make this easier:
Retargeting campaigns are ideal when you’re trying to:
- Improve brand recall: Consumers may be exposed to a lot of different brands when they’re browsing online. Retargeting can help keep your brand top of mind when they’re ready to buy.
- Boost conversions: Brands always need to make the most of their budgets, and retargeting can increase click-through rates (CTRs) directly to eCommerce checkout pages.
- Enhance personalization: Consumers are more likely to notice and act upon ads that feature products they’ve shown an active interest in exploring, or which are tailored to their interests.
Remarketing campaigns are ideal when you’re trying to:
- Reactivate lapsed customers: Some shoppers might be eager to come back if they know you’ve added new items to your collection or are running a special promotion. Remarketing communicates this kind of information to the people who truly need to know. These are sometimes called “win back” campaigns.
- Increase cross-sells and upsells: Customers may have bought what they wanted and needed, but they might be interested in complementary items or accessories that help them get more out of their purchase. Remarketing campaigns can increase your share of wallet within your existing base.
- Promote loyalty programs: Customers are more likely to stay engaged when they can earn rewards based upon consistent shopping activity. Remarketing campaigns not only keep loyalty programs alive, but do so using members’ preferred channels such as e-mail or text messages.
How can Highstreet.io help you with your retargeting campaigns?
Marketing tactics like retargeting campaigns become more feasible for brands when they can hand off key steps to experienced partners with a proven track record in helping drive successful results.
Beyond creating compelling ad copy and images, for example, retargeting efforts require setting up and configuring product feeds that draw upon your product catalog and connect with ad channels such as Google, Facebook and display networks.
Highstreet.io simplifies retargeting campaigns by handling feed generation and customizing feeds based on your target segments and where you’ll be serving them ads.
When customers show interest in ads delivered via retargeting, meanwhile, you’ll want to make sure you have inventory in stock to fulfill any orders they place. That’s why Highstreet.io offers an optional synchronization service that keeps data up to date regardless of the retargeting partners you’ve chosen.
You’ll also want a partner like Highstreet.io that can offer multi-market support. For many brands, potential customers can be coming from all over the world. Automating feed management allows you to run retargeting campaigns that reflect local languages and currencies.
Finally, brands should always opt for complete visibility into marketing performance in order to fine-tune the way they work. Highstreet.io allows you to connect analytic platforms to monitor what’s happening at both the product and channel level in order to promote your strongest assets.
Frequently Asked Questions About Retargeting and Remarketing
Once you’ve answered the “What is retargeting” question, a few other issues tend to come up. Here’s what you need to know:
Can Retargeting and Remarketing Be Used Together?
Yes. It’s not always question of retargeting vs. remarketing but how to blend the two approaches to create a great customer experience.
Retargeting could work well in the early stages of a customer relationship, for instance, when a consumer is about to make their first purchase with a brand.
After they’ve bought a product and provided their contact information, remarketing can deepen the relationship with personalized offers.
How Do You Create an Effective Retargeting Strategy?
Start by using the data you’ve captured through third-party cookies or pixels to develop customer segments you’ll use.
Next, develop ads that are specific as possible, reflecting the items people looked at on your site or social media accounts.
Conduct an A/B test with a small campaign to see which advertising creative works better with the target segment.
Refine your efforts further by running campaigns across both search and social, expanding based on how the retargeting ads perform.
How Do You Create a Successful Remarketing Strategy?
Similar to setting up a retargeting campaign, start with data – but in this case, you’ll be leaning on data you’ve been given permission to use by existing customers.
From there, determine whether your primary objective is to win back customers, encourage them to spend more or take advantage of loyalty offers. Make these objectives clear with your call-to-actions in your ad copy.
Reflect the fact you have an existing relationship with these customers with subject lines like, “We’ve missed you” or “We found something you might like.”
If your initial remarketing efforts don’t perform as expected, you may need to take more time personalizing the content you’re providing and the products you’re recommending. Be prepared to continually refresh these campaigns with new content so you’re treating the ads more like a conversation with customers, rather than a hard sales pitch.
Ready to get started? Connect with us to learn more about our approach to retargeting and turn more browsers into online buyers.