One of the laws of business is that it’s always more expensive to acquire a new customer than it is to sell more to an existing customer. Part of the reason is that having more information about the people you are marketing to translates directly into better sales leads and more receptive purchasers. This is because trust has previously been established, and you can more precisely tailor your offer based on the data you have, so your audience will be more likely to consider your advertising and marketing. From a business perspective, this means less cost per advertisement and significantly improved marketing results.
To effectively retarget an offer to existing customers there are three main steps that you need to follow.
- Pick the segment to retarget. The first thing you have to do is decide which segment of your customers you are going to send your retargeting campaign to. You can use information like the details about what they previously purchased, how they paid, what their preferred delivery method was, their average purchase values, or their purchase frequency. For example, if you decide that you want to get your customers to purchase more frequently, then you would target your campaign at customers who show a less-frequent purchase pattern in order to get them to buy more, since trying to get your customers who already purchase frequently to purchase even more frequently would most likely be less effective than getting people who only purchase occasionally to start buying more.
- Pick an offer to entice them. Once you’ve identified the segment of your customers that you want to target with your campaign, you then have to choose the offer that will appear in your retargeting campaign. You should make sure that whatever you choose both appeals to this group of customers, but also helps you accomplish your business goals.
To continue with the example from before of trying to get more repeat business, you could offer a series of discount codes to customers who show a low purchase frequency to entice them to shop more. You could set up the codes so that each one within the set is valid for a short period of time, but as a group they are consecutive. So each code would only be valid for one week, and together they would cover a back-to-back four-week period. This scenario means the customer has a limited window in which to use each code before it expires and the next one becomes active. In order to get the biggest value from the entire set of coupons, the customer would have to use each of them before they expire, which increases their repeat purchases just like you planned.
Another way to build on this offer even further would be to make each coupon increase in value only if the previous coupon code has been used. You could offer coupon codes for four weeks, where each one by itself is worth 5% off. But if the person uses more than one, for each additional code that they activate the percentage of their discount increases. So if you use one coupon, then the second gives you 10% off your second purchase instead of 5%. If you use the first two coupons, then the third coupon would get you 15% off your third purchase, and if you use all four you could get 25% off the final purchase. Increasing the discount this way rewards customers for making repeat purchases even more, which is exactly your objective.
- Craft the campaign message and send. Once you’ve determined the customer segment you want to retarget and the offer that you are going to provide for them, you have to craft your communications materials to let them know about the offerings. Once you do this, you’re ready to send! Here are the key points to consider when designing your communications:
- Reestablish Trust. The first thing your retargeting campaign should do is remind the customer that they have previously purchased from you, and explain why they are receiving the message that they are looking at. You want to make sure you immediately distinguish yourself from the other unwanted communications they regularly get by showing that you have an existing relationship with them, and that’s why you’ve sent them this material.
- Explain Your Offer’s Benefits. Once you’ve reestablished trust, let your customer know what you are offering them and how they benefit from it. For tips on selling your offer’s benefits, check out our post “thesis dissertation difference”
- Include a Call to Action. If you’ve done a good job pitching your offer to your customers, they should now be eager to take the next step to claim their offer. This is where you include a call to action that tells them what their next steps are so that it’s easy for them to follow through and complete their transaction.
An added benefit of retargeting existing customers that many businesses overlook is the fact that it can also protect your brand from competitors taking market share from you. For example, if you retargeting campaign doesn’t product substantial sales, it could still keep your company on the top of your customer’s minds for when they do need a product like yours. There’s a possibility that your retargeting campaign didn’t generate many sales because your customers did need any more of what you offer at that time, but the next time they do they will remember to come to you, whereas without the retargeting campaign it would provide an opportunity for a competitor to move in and take their business in the future.
Remember, every business in every market can use these techniques to keep customers and increase business. They cost less in terms of advertising dollars, and are generally five to ten times more effective than advertising to new customers.
Let us know about any successful retargeting campaigns you’ve run on your customers in the comments!