An abandoned cart in the world of e-commerce is critical as it directly impacts the retailer’s revenue.
Each time a cart is left abandoned, the opportunity to convert an engaged customer becomes more and more valuable.
Therefore, it is imperative to recover these abandoned carts to increase revenue and in the most efficient way possible. One useful tool for achieving this is by using abandoned cart retargeting.
Research shows that retargeting ads along with other advertising can help sales increase by around 50%. Now let us see what they are and how they work.
What is Abandoned Cart Retargeting?
Retargeting ads are a form of online target advertising and are directed at people who have already visited your online shopping website.
They could also be a contact in your database, like a lead or customer.
It is the most effective tool designed to help companies reach out to customers who leave their shopping cart abandoned.
Whenever retargeting ads are seen by customers, your brand gains more recognition and traction.
This is because these ads remind them of your product as they continue browsing through the internet, no matter what website they’re on or even while researching your competitors.
How Abandoned Cart Retargeting Ads Work?
Retargeting ads work by using ‘cookies’, which is a small piece of data stored by the internet browser that remembers users who visited your webpage or advertisement.
This cookie data then can be used by marketing teams to serve ads to those users again.
By showing these relevant and targeted ads to users that have shown an interest in your brand or product, you increase brand awareness which eventually increases conversions too.
Are Retargeting Ads Safe?
With an increase in social media users the amount of information that has been made publicly available, privacy is a growing concern.
Many online users and shoppers are beginning to wonder how different websites have access to information regarding their personal searches. This level of doubt is only on the rise.
However, using retargeting ads is a safe way to use user data to promote your business and at the same time keep your customers’ and potential customers’ information private.
How Can Retargeting Ads Help Recover Abandoned Carts?
Let’s take a look at why retargeting ads have a high success rate for recovering abandoned carts:
Higher Click-Through Rate
Abandoned cart retargeting ads are a popular way of reducing cart abandonment because it works.
Research shows that retargeting ads have a higher click-through rate of 0.7% which is higher than regular ads that have a click-through rate of only 0.07%.
Retargeting Ads are More Personal
Retargeting ads work because they target shoppers who have already shown interest in a product, rather than a random product that they may not be interested in which is shown in regular ads.
Most e-commerce businesses use the single-product design ad template to show a single product or the carousel ad template to showcase the desired product as well as alternatives that the customer might be interested in.
Retargeting Ads are Attractive
A common occurrence is when shoppers leave their carts at the last leg of their checkout process as soon as they notice that they have to pay for shipping costs.
Retargeting Ads are Dynamic
By showcasing the product in the ad and adding taglines or subject lines like “This product is selling out fast!”, or “Only five items left in stock”, you can entice customers who have abandoned their carts to finally make a purchase.
How to Set Up Retargeting Ads?
When setting up retargeting ads, here are some basic tips to keep in mind.
Segment Cart Abandonments
Before implementing a retargeting ad campaign, you should divide abandoned carts into different segments. They can be segmented by:
- First time on repeat sales
- Total value of the cart.
Choose a Platform
Most e-commerce software or platforms have a built-in cart abandonment email function.
You can use this function to send emails to your customers, but there are other third-party options available for retargeting ads.
- AdRoll- AdRoll allows you to manage and select where you want your retargeting ads to appear. You can choose whether you want it to appear on Facebook, Google, or third-party apps and sites.
- Facebook ads – Facebook is a popular platform that most people use. You can use the Custom Audiences feature that allows you to import the list of those who have abandoned cards and retarget them on their Facebook newsfeed.
- ReTargeter– With ReTargeter you can place your ads on different websites and social media platforms and reach out to those who have abandoned carts.
Set Up a Burn Pixel
Retargeting ad platforms allow you to create a burn pixel.
This means that marketers can stop showing a particular ad once the customer has purchased the item. For example, Facebook ads have the Facebook pixel that works as a burn pixel.
Burn pixels go a long way in helping you to build a relationship with your customers, which encourages repeat sales.
Select a Time Frame and Frequency
Timing is a crucial factor when sending retargeting ads.
An ad that is shown very soon is seen as a risk pestering the buyer to buy the product as soon as they have abandoned their cart, but an ad that is sent too late would encourage your customer to buy the product from a competitor’s website.
Thus sending a retargeting ad at the right time depends on:
- Demographic and behavioral characteristics of your customers
- The industry
- The type of item they are purchasing.
Developing an Ad Copy
Customers see plenty of ads every day. To set your ad apart from the rest, it needs to be goal-oriented and strategically written.
Your ads need to touch the customer and solve the reason why they left their card.
The more directly you address the problem itself, the better you will be able to retain your customers.
There are third-party forums that can help you create smart and good ads based on well-written and strategic content.
Retargeting ads are one of the best ways to re-engage customers and drive their attention towards abandoned carts.
Use abandoned cart retargeting to push sales and build longer relationships with your customers.