It’s all about the data and marketers’ ability to pinpoint micro-groups of users, targeting them with the appropriate offerings. According to Wordstream data, an average e-commerce Cost Per Acquisition from Google AdWords in the US is about $46, which makes it really tough to at least break even from the very first purchase (an average order value across the US in the Q1 2016 was $113.97, according to Monetate E-commerce report.
Furthermore, the overall trend shows that it’s not going to be better. Over the last 2 years an average CPC skyrocketed by 71%, the number of e-commerce websites is growing exponentially, which means that in order to stay competitive, e-commerce marketers should reconsider their acquisition and especially retention approach, relentlessly shaping it as a top-notch data-driven engine.
The good news is 20.5% YOY and sales transactions 17.8% revenue growth from returning visitors, according to Monetate E-commerce. Let’s take a look at 3 e-commerce remarketing strategies that can help to unleash the power of returning visitors’ purchases.
1. Many Abandoned Shopping Carts – Launch a Triggered Email Campaign
The challenge: Let’s keep it simple, it’s a must for any e-commerce website. On average, 73.6% of e-commerce shopping carts are abandoned, according to SalesCycle data. Good news, if you haven’t collected abandoned shopping carts audience yet, because it can bring you double-digit sales increase in a matter of weeks, depending on the volume of your website traffic.
What to do: Leveraging Doubleclick, AdWords Scripts, and smart bidding techniques you can craft really compelling offerings, dynamically switching items that your customer forgot to pay for while going through the checkout process.
Speaking of email marketing, it’s a great strategy to track your visitors’ behavior and launch abandoned shopping carts triggered email campaigns, considering internal data about the best delay between the shopping cart abandonment and the email launching.
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This sweet and simple abandoned shopping cart email resulted in +10% sales for a leading Ukrainian omnichannel apparel retailer INTERTOP:
2. Many Visits, Few Purchases – Employ Products-Driven E-Commerce Remarketing
The challenge: Our customers show a plenty of data to us, the challenging thing is to collect this data properly and incorporate the knowledge into ongoing marketing campaigns. Only 10.3% of visits resulted in Add-to-Cart conversion in Q2 2016, which means that we still have about 90% of potential customers to return.
What to do: Automatically collecting visitors into different remarketing audiences, taking into the consideration products price range, size, color, brand, and other metrics that matter for a particular vertical will help to pinpoint very narrowed audiences, making the ads a complete match. What’s even more important is that remarketing traffic on average is cheaper, making it a winning strategy in terms of acquisition a costs decrease.
Email marketing also provides marketers with a wide range of options. Any e-commerce company can set up a range of triggers that will launch an email like “It seems like you’re replacing your fridge, here’s a sweet list for you to choose from…” showing fridges of the same size, price range, and color that a particular visitor browsed through.
A visitor didn’t add to cart any of the items above, yet received an email with the top 3 items, that a sophisticated algorithm considered as the most appropriate match for the browsing behavior.
3. Having a History of Customer Purchase, Now What? – Set Up CRM-Driven E-Commerce Remarketing
The challenge: The data about the history of customers’ purchases is just invaluable. We have it all: lifetime value, the number of purchases, RFM cohorts, renewable products (i.e. contact lenses), sex, age, location, and much more. Unfortunately, very few e-commerce companies, especially small and medium-size businesses, take the advantage of this knowledge in marketing strategies.
What to do: Doubleclick enables advertisers to leverage internal knowledge about the customers, tailoring digital ads using predictive analysis, past history of purchases, etc. For instance, one of the top 15 banks in the Central and Eastern Europe increased the efficiency of its ads significantly by using data about users’ credit history, demographic, and other behavior.
CRM-triggered email marketing campaigns for e-commerce are even easier to launch. There are no limits in triggers usage, just some basic things to start with:
• A number of recurring purchases made;
• Overall lifetime purchases value;
• RFM analysis based segments;
• Categories of products purchased;
• Products recommendation algorithm usage (increases conversion threefold) etc.
This simple email drove an enormous number of sales, using the information about the weight of the pet and both the owner’s and the pet’s names in order to make the offer more personalized:
The Bottom Line
The market is oversaturated with offers and the increasing number of new e-retailers spur acquisition costs even further. Small and medium size businesses have to be extremely proactive in order not to be priced out due to high acquisition costs and the best way to do it is to empower remarketing techniques while keeping building brand awareness and users’ loyalty. There are quite a few simple steps everyone can start with.