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How Retargeting Helps You Understand Customer Behaviour

The digital economy continues to evolve at a fast speed. More products and services are being launched each day, which makes a marketer’s job of understanding a customer’s buying behaviour more challenging. It’s not enough to react anymore. In fact, customers expect you to anticipate their needs and wants.

How else then can businesses observe online behaviour and patterns and reinforce messages so that they can anticipate a customer’s need and convert them into loyal paying customers? The answer is quite simple. It’s through retargeting strategies.

Marketers can use retargeting as a way to anticipate their customer’s needs by customizing specific messages and sending messages to help a customer convert along the purchase cycle.

How Does Retargeting Work?

Simply put retargeting tracks people who visit your site and displays retargeting ads to them. It is advertising to someone who has already indicated interest in your product or service.

Think of it like this – A customer enters your store and leaves without making a purchase. You then follow the person down the street and continue pitching your product to get the person back in the store.

Because retargeted ads can be customized based on each viewer’s online behaviour and needs, businesses can expect a much higher conversion rate.

So How Can You Use Retargeting To Understand Customer Behaviour?

  • Retargeting can be used to follow different paths customers take towards a decision.

As mentioned earlier, retargeting ads are fully customizable. To effectively use retargeting, marketers can start by analyzing where along the customer journey their customers are “stuck” and even anticipate where along the customer journey a customer’s experience can be enhanced for conversions.

We recommend viewing your Top Conversion Paths in Google Analytics to help you find where conversions are happening the most. Prior to launching a retargeting campaign, measure the numbers of visitors at each stage of the conversion funnel and select which stage in the conversion funnel, you would like to start pushing ads and testing.

You may also check other customer actions/ behaviour on Google Analytics like

  • how long a customer spent on specific landing pages
  • where in the form they got stuck
  • certain behaviours taken by past purchasers.

For example, you are clothing store and are noticing that there is a good amount of leads and conversions coming from Facebook. Using interests and demographics on Google, you can retarget a specific group on Facebook and offer a 30% discount on their next purchase. Imagine this type of buyer persona and create ads based on your data findings. You may also compare this to say a retargeting email campaign by offering the same amount of discount and compare the performances on both.

  • Retargeting segments your visitors and provides more insights on audiences with converted clicks.

Retargeting also helps you identify who your customers are so that you can ensure you are investing retargeting dollars where it counts. Testing various types of messaging and selling points can also help you hone in the type of messages that resonate with your customers.

Are you finding that the conversion rates are higher from people browsing entertainment sites than cooking sites? Analyze findings on Google to determine what types of ads your customers like to see.

Also, be mindful about the segmenting your visitors.

For example, you own a baby clothing store. Within a three-hour window of someone searching, you can use retargeting to focus heavily on items that they specifically browsed or even similar products. Ninety days later, this same audience may be browsing again, but this time a retargeted message can be focused on showing products under a 6- 9 month category, to drive conversions.

Retargeting is not a standalone marketing strategy but another tool to learn more about your customers and their needs. By concentrating on advertising to those people who have had a relationship with your brand, ads are most likely to be remembered and influential, and ultimately increase ROI.

Have you tried running retargeting ads in your business or need help in setting up a retargeting ad campaign to increase more business? Leave your comments below and one of our Google experts will contact you.